Grocery Stores
I was sad to hear this morning that Bi-Lo has filed for bankruptcy. I don’t know what this means for them long-term, but they are definitely struggling. Rita and I often discuss the economic competition among local grocery stores. There are always plenty to choose from in a particular area, but some always seem better than others. She grew up going to Publix and usually only wants to go there. I grew up going to Bi-Lo, but I’m not really picky about where we go. In Charleston, the other big competitors are Harris Teeter and Piggly Wiggly. I’ll be the first to admit though that Publix blows everyone away. They are clean, spacious, there are plenty of cheap generic brands, and the employees are helpful and courteous. The other grocery stores are pretty much the opposite. The Publix is constantly packed while other smaller nearby grocery stores sit empty. This makes me wonder why other grocery stores can’t touch the overall quality of Publix. The consumer obviously realizes the difference. I know that turning around a business like a grocery store (in terms of quality and public image) is a huge effort that takes a lot of time and money. It starts from the top down.
My boss likes to say that in business, you have to fight fire with fire. You can’t sit back and let a competitor offer something of value to clients that you don’t offer, because it will begin to erode your business. I believe this is especially true with grocery stores. How long can these other stores remain open while consistently getting their butts kicked? Similarly, there is a Chick-Fil-A in Charleston that almost always has cars wrapped all the way around it. The parking lot is a traffic jam, but somehow you always have your food within 5 minutes or so! An Arby’s sits right next to it and the parking lot is almost empty. Sometimes when waiting in the Chick-Fil-A line, I’ll watch the Arby’s parking lot and there won’t be a single car ever go through the drive-through. As consumers, we like having lots of options and having competition, because it causes businesses to strive to be the best they can be. I hope weaker competitors don’t keep failing, leaving the big guys to keep getting bigger.
