If a sale occurred to Kroger, which is the second-largest
grocery chain after Walmart, then we would see a return of the mid-market
grocer to the Charlotte market, as well as a return to other markets that have
experienced Kroger’s absence, like the Washington, D.C.-metro area. Kroger, however, is the most typical mid-market
grocer in America, which a price point that is more on par with Bi-Lo than
Harris Teeter. Kroger only has a handful
of stores in North Carolina currently, in Raleigh and Durham, and if a takeover
of Harris Teeter were to occur, this would make Kroger one of the most dominant
grocery store chains in the state.
With Publix expanding into the Charlotte metro area, one
would think that the quickest takeover for Harris Teeter, its most formidable
competitor, would give them a stronghold of the market. We don’t see this happening either though,
because Publix grows a little more organically rather than through
acquisition. Publix is planning on
opening stores in Charlotte’s Ballantyne and South End communities soon.
Ultimately, much of the speculation is just that, and like
we said our prediction is that the customer won’t notice any changes if and
when a transaction occurs. With the
store-swap with Lowes Foods last year in the Charlotte area, we think that Harris
Teeter has worked hard to keep its core footprint of suburban markets and up
and coming urban areas.
