Across the U.S. national grocers recently revealed intentions to expand their footprints. This signals a bounce back in the segment after many retailers shuttered locations earlier this year and in 2023.
Domestically, there were 62,383 supermarkets and grocery stores in 2023, down 0.9% from the year before according to data insights firm IBIS World. This coincided with last year’s economic uncertainty which resulted in elevated food and household prices that threatened families’ food budgets.
However, consumers have been seeing relief:
“Food prices are expected to continue to decelerate in 2024 compared to recent years,” noted USDA’s Economic Research Service in a recent report.
Inflation data from the U.S. Bureau of Labor Statistics corroborates these findings, reporting that food prices increased by just 0.1% in August, seasonally adjusted when compared to the previous month, moderating from July and June already modest 0.2% respective seasonally adjusted spikes.
The “Right-Fit” Trend: Coast to Coast
Whole Foods and PCC Community Markets recently revealed their forays into smaller format locations to appeal to urban consumers, the latest installment in an ongoing trend of retailers “right-fitting” their locations, adapting floorplans and curating their selections to best fit the needs of their customer bases.
On September 18, Whole Foods unveiled Whole Foods Market Daily Shop, the first in a series of 7,000 to 14,000-square-foot stores to roll out across urban areas in the U.S.
“It is designed to bring the freshest, high-quality ingredients to customers with a convenience that fits their fast-paced urban lifestyles,” said Whole Foods, in a statement. The location prioritizes grab-and-go meals and snacks and weekly essentials and features over 400 local products from Northeast-based suppliers.
“Real estate dictates a lot of it,” Whole Foods growth and innovation senior principal Stephanie Curley told Food Institute during a tour of the location. “So, if we can bring our full-size store we will, but also the idea behind this [move] is that we’re clustering our stores.”
After PCC Community Markets closed their Downtown Seattle location after determining it could not profitably operate a full-service store there, CEO Krish Srinivasan wrote in a letter to the co-op’s members that they will open a smaller format store at the location, designating the remainder of the space to corporate offices.
“We are thrilled to be able to meet that need with this new concept that promises significantly better economics than a full-service grocery store,” said Srinivasan.
Recent Announcements
Whole Foods is also bulking up its traditional store count with two locations slated to open in Hyannis, Massachusetts and Phoenix on October 10 and 16, respectively. Both locations will feature full-service meat, dairy, and seafood counters, as well as dedicated bakery and prepared foods sections. The New England location will carry more than 370 local items, while the Phoenix store touts more than 330 local offerings.
Among other retailers debuting additions include Target, Lidl, GIANT, H-E-B, Sprouts Farmers Market, The Fresh Market, and Trader Joe’s.
A dark horse in the lineup, Target is adding a sortation center to Detroit, an area where the mass grocer does not currently have a location, according to Axios Detroit. The building will help bulk up its supply chain by taking in packages from more than 30 stores in the area, sorting them, then batching them for delivery to nearby customers.
Lidl, on the other hand, is investing in strategic expansions in both rural and urban markets with a location in Cumming, Georgia slated to open on September 25, and construction on a store in Manhattan set for summer 2025.
Gearing up for three openings on September 27, Sprouts Farmers Market will expand its footprint in Greenville, South Carolina, Rio Rancho, New Mexico, and Hayward, California. Additionally, it will open its 48th Arizona store in Avondale on October 25, and two California locations near Palm Springs and Studio City on November 8 and 15, respectively. In the Southeast, it is also bulking up its presence with a store slated to open in Largo, Florida on November 15.
Following is a list of additional recently announced locations:
- The Fresh Market opened its latest 24,597-square-foot location on September 13 in Seminole, Florida.
- H-E-B announced construction on two locations: one set to debut in the summer of 2025 in Georgetown, Texas, and another projected to open in late 2026 in Irving, Texas.
- GIANT unveiled two additional stores in Philadelphia to add to its footprint of nine stores in the area with one set to open later this year and another scheduled to begin construction in 2025.
- Since the beginning of the year, Trader Joe’s has announced 29 locations projected to open by the end of 2024, with roughly seven already in fruition. The anticipated stores bolster their presence in 14 U.S. states.
