Anne Howe

Reuters: BI-LO Goes on the Block

August 11, 2010

FROM RETAILWIRE:
The BI-LO supermarket chain, owned by Lone Star Funds, is up for sale and drawing interest from private equity firms and other grocers, according to a Reuters report. What do you think is likely to happen to BI-LO, assuming Reuters is correct in reporting the chain is for sale?      [more...]

The rumored sale of BI-LO stores speaks to the reality of shopper behavior: shoppers vote with their dollars. Despite the trend to visit more stores in search of good deals and price promotions, shoppers will not continue to visit stores where the experience doesn't meet their expectations. My semi-regular visits to the southeast typically include a few visits to BI-LO, and while my eye is better trained, it's easy to see the lack of investment in quality merchandise and interesting products that might inspire a return visit.

Not surprising to see interest in some of the quality locations by other grocers. I would also hope to see some of the local specialty retailers such as The Fresh Market move into the bidding as well.