Food Lion’s $60 Million Makeover

Discussion
Sep 25, 2003
George Anderson

By George Anderson


Food Lion is going more upscale, with remodels of its stores in the Raleigh-Durham area of North Carolina almost complete, reports the News & Observer.


The Delhaize America division has invested $60 million on the remodels. The chain is looking to upgrade its service and selection image with the new remodeled stores, including
full-service delis and wine departments.


The company is looking for the remodels to help it bring in new customers who previously shopped outlets rather than no-frills Food Lion.


It maintains, however, it is not turning its back on its core shoppers that have chosen Food Lion because of its low prices.


Rick Anicetti, chief executive officer, Food Lion said, “We still have the power to lower prices while offering more products. Those two things — convenience and low prices
— are not mutually exclusive.”


Mr. Anicett’s words will be welcome news to Food Lion shoppers such as Allen White, 64. He told the News & Observer, “The improvements are nice, but the prices are
still the main thing,” he said. “If they keep them down, I’ll keep shopping here.”


Moderator’s Comment: What are your thoughts on the changes being made at Food Lion?


It sounds as if Food Lion is looking to grab some of Harris Teeter’s shoppers. How successful this will be, remains to be seen. What these changes will
mean in helping Food Lion deal with its more immediate problem, Wal-Mart, is far from clear to us. [
George
Anderson – Moderator
]

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