Publix Wants a Piece of Charlotte
Charlottes a mature market for grocery stores (we think that means we buy more Shredded Wheat than Cookie Crisp) but not so mature that new entrants cant take a crack. 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. 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 56k 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 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, financeable for experienced developers, and highly sought after by institutional investors, he explains.
