Publix Vies for a Piece of Charlotte 2
Charlottes a mature market for grocery stores (which means we buy more Shredded Wheat than Cookie Crisp), but not so mature that new entrants cant take a crack at it. Recently a JV of Fort Lauderdale-based Stiles and locally based Levine Properties broke ground for the latest competitor:Publix.
Stiles SVP Scott MacLaren tells us that major metros with growing populations like Charlotte will continue to be a target for strong national and regional grocery chains looking to increase footprint and sales. Even with established competitors already in place, experienced grocery operators with economies of scale will be willing to compete head-to-head based not only on price, but also quality, service, cleanliness, and prepared food offerings, he notes.
Lakeland, Fla.-based Publixs first store in greater Charlotte, and in fact in North Carolina, will be at the Ballantyne Shopping Center on a site owned by Harris Land Co. The 56.4k SF store will open in early 2014. Major grocery anchors are regarded as high credit and a stable draw for neighborhood center tenants, Scott says. (They are also enjoy ardent support from Girl Scouts who use them as a place to sell cookies.) As a result, grocery-anchored neighborhood shopping centers are a favored asset class right now, financeable for experienced developers, and highly sought after by institutional investors, he explains.
