WHAT’S NEXT
Food City is slated to start renovating three or four more Chattanooga area stores after the new year as well as build new units in Athens, Tenn., and Rossville, Ga.
Calling Food City's entry into the Chattanooga area "a big, big move," a key grocery industry publication on Friday named the supermarket company its top retailer in the Southeast for 2016.
"This was a good time to make a move and get further entrenched in markets that may be under-served or you have a better format or pricing or whatever it may be," said Ron Johnston, publisher of The Shelby Report.
In mid-2015, Food City entered the Chattanooga market in the area's biggest grocery store deal in more than a decade when it bought 29 Bi-Lo units. Food City has pledged to spend $40 million to $50 million to upgrade the stores and build new ones.
Steve Smith, Food City's chief executive, said it's significant the Abingdon, Va.-based grocer accepted the award in Chattanooga.
"A year and a half ago we came to Chattanooga," he said. "We acquired a lot of great people, promised to invest in the stores, in them, and in the products we sell."
Smith, speaking in the newly renovated St. Elmo Food City store, said the company is "still on this journey."
While the grocer has renovated six stores, work at four more is underway. Smith cited upgrades at stores in South Cleveland, Lakesite, Chatsworth, Ga., and Red Bank. He also said all of those stores eventually will have fuel centers.
Smith said plans are to refurbish three or four more units starting early next year. The company CEO said that plans are to build a new store in Athens, Tenn., and a replacement store on Mission Ridge Road in Rossville.
"We've had a tough 18 months," he said, but Food City being named Southeast retailer of the year "makes it worthwhile."
Johnston said The Shelby Report editorial staff came up with a list of 20 to 25 grocers and looked at criteria such as leadership, innovation, customer service, store formats and other factors.
He termed Food City's purchase of the Bi-Lo stores "bold" as the Virginia company moved south into the Chattanooga area, including North Georgia.
"It's definitely going to be a lift for Food City in terms of market share," Johnston said.
Smith said The Shelby Report's award recognizes the 60 years the company has been around.
"They recognize we reinvest in our stores, our community," he said.
Smith said that the privately held company is 14 percent owned by its employees.
"We think that gives us a differential," he said.
The Shelby Report, headquartered in Gainesville, Ga., delivers industry news and insights to the retail food trade nationwide through distribution of five monthly regional print and digital editions.
Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.