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Grocery Store Wars: Supermarkets flood into Hampton Roads

The battle for your grocery business is heating up in Hampton Roads as more and more stores crowd into the market. Can they all survive?

NEWPORT NEWS, Va. (WVEC) -- It seems the grocery store industry is bucking the trend of the brick-and-mortar retail struggle. Currently, chains Aldi and Lidl are opening and building stores all across the Hampton Roads region, preparing to enter an already crowded market.

Old Dominion University's College of Business Dean Jeff Tanner said the supermarket influx is in response to a fragmenting market of shoppers. Gone are the days when one size fits all.

"Consumers are demanding more variety in their options, and they are able to get it because of things like the Internet, so they expect it in all forms of retail," explained Tanner.

Tanner told 13News Now grocery stores such as Aldi are thriving by building smaller stores that specifically target a smaller market.

They keep costs down with smaller structures and low frills.

"The market for us is anyone who appreciates their dollar bill going further, and what we realize is there are a lot of people in Hampton Roads, particularly in Newport News, who appreciate that, " stated Aldi's Frederick Division Director of Operations, Gordon Stewart.

Illinois-based, Aldi has opened two stores in Newport News that are only 3.8 miles apart. Along the drive from store to store down Jefferson Avenue, you pass an additional seven grocery stores. Lidi is in the process of building a store about a mile away near City Center. The Germany-based store follows a similar model to Aldi.

"Now they're competing more on economies of scope. They want to serve a very small defined market very well," said Tanner.

Aldi shopper, Brett Collier loves the competition.

"Having competition in the market has really driven down the prices. Comparing the prices at Kroger since the other Aldi opened, I've seen them drop their prices on several items," Collier noted.

On the other side of the grocery game, are the stores that are trying to be everything to everybody.

New in recent years is Kroger Marketplace, a superstore that also sells clothing, jewelry, and toys, in addition to groceries. There are four in Hampton Roads.

"Kroger has the history. We have the data. We listen to our customers. They tell us what they want, and we can adjust. We can adapt, " said Reshamar Short, a Kroger Division Operations Manager.

Tanner told 13News Now one reason why you're seeing more full-service grocery stores, such as Kroger, Whole Foods, and a planned Wegman's, is because they are competing effectively against restaurant chains.

"They're losing to the Whole Foods and other retailers who are serving prepared foods," Tanner stated.

As in any war, there will be losers.

Tanner said the stores that he feels haven't carved out a niche will be the ones that will struggle the most.

"If I were in charge of Food Lion, I would be looking at how I could more effectively utilize my space," Tanner said.

Food Lion still is king of the market with almost 80 stores.

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