Walmart and Harris Teeter compete for Charlotte’s top grocer. Which chain is winning?
Walmart has solidified its position atop the Charlotte region’s intense grocery competition during a year marked by the coronavirus pandemic, a new report found.
It was the second year in a row that Walmart saw the most sales of any local grocer, according to the latest annual report released this week by Chain Store Guide. The sales tracking firm works directly with grocery stores to get its data.
Walmart took 21.1% of the market share last year. Matthews-based supermarket Harris Teeter, owned by The Kroger Co., came in second again, with a 16.5% market share. The gap in market share between Walmart and Harris Teeter also grew slightly last year.
In 2019, Walmart knocked Harris Teeter from the No. 1 ranking that it had held for three years. Walmart and Harris Teeter have jostled for supremacy since Walmart first captured the top spot in 2011.
Walmart has made a number of upgrades to stores, including remodels and adding technology and services, such as pickup and delivery, the company said in a statement.
“We are delighted that our investments once again made Walmart the top grocery store in the Charlotte market,” the statement said.
Food Lion, based in Salisbury and owned by Ahold Delhaize, maintained its position in third place, claiming 15.4% of the market share.
Harris Teeter has 61 stores in the Charlotte region, compared to Walmart’s 28 supercenter stores. Food Lion has 104 regional stores.
Between them, the trio captured just over half of all local grocery sales last year, despite increased competition from the likes of Publix, Lidl and Aldi, according to the report.
Grocery sales worth billions
Total grocery sales for the region topped $8 billion last year, according to the report.
But while overall sales increased, the growth rate was not as big as the previous year, despite people sheltering at home through much of the year because of the coronavirus pandemic.
Estimated total grocery sales last year were nearly $8.2 billion — that’s a 4.6% increase over 2019 sales totals of $7.8 billion. But grocery sales in 2019 grew by 6.3% over the prior year.
The report considers the Charlotte region to include Cabarrus, Gaston, Iredell, Lincoln, Mecklenburg, Rowan and Union counties as well as Chester, Lancaster and York in South Carolina.
Other grocers’ market shares
The intense regional grocery wars also can be seen in the continual splintering of market share.
Rounding out the top 10 after Walmart, Harris Teeter and Food Lion were: Publix, 9.6%; Sam’s Club, 6%; Target, 4%; Cotsco Wholesale, 2.8%; Bi-Lo, 2.4%, Aldi, 2.3%; and Lidl, 2.3%.
Of the top 10 grocery stores by sales, only Publix, Aldi, Lidl and Sam’s Club saw modest increases in market share.
Walmart’s market share decreased from 21.8% in 2019 to 21.1% last year. And Harris Teeter saw the biggest drop in market share, according to the survey, from 17.9% in 2019 to 16.5% last year.
Expanding in Charlotte
The competition for grocery sales is growing more fierce as supermarkets plot expansion plans:
▪ This year, Harris Teeter reopened its Park Road Shopping Center store with a retro look. The store underwent a year of major renovations with new additions including a wine and beer bar and a full-service butcher department. The grocer also plans to open a store at Fort Mill Parkway in Fort Mill, S.C.
▪ German discount grocer Aldi opened new stores in Cornelius, Indian Land, S.C., and Rock Hill.
▪ Publix is planning to open a store at 11525 Carmel Commons. The Florida-based grocer has plans for two other stores, at 10Tryon building in uptown and at the corner of Sharon and Colony roads in South Park. Another Publix is likely part of Equinox Development plans on Rock River Church Road in Mecklenburg County, the Observer previously reported.
Old and new stores expand too
Other stores are expanding as well:
▪ Last year, Food Lion purchased 62 BI-LO and Harveys Supermarkets across the Carolinas and Georgia. The company has recently opened two stores in York at Filbert Highway and East Liberty Street and one in Chester, S.C. Bi-Lo had 2.5% of the market share last year.
▪ German-based discount grocer Lidl is expanding in the Charlotte market. Lidl has plans to open a store in the Carmel Commons area and three others on South Boulevard, Mallard Creek Church Road and South Tryon Street in Steele Creek. The latter two could open this summer. Lidl now has seven Charlotte area stores. Lidl opened its first Charlotte store in December 2019.
▪ Earth Fare returned to the Charlotte market this year, reopening at several of its stores that closed in 2019 after the company filed for bankruptcy. Asheville-based Hulsing Enterprises bought the brand, resurrecting several of the specialty grocer’s locations, including Rock Hill, Fort Mill, SouthPark and Ballantyne.
▪ Farmstead, an online-only grocer, also debuted in Charlotte last year. The San Francisco-based company opened its first East Coast site on West Pointe Drive in west Charlotte, north of the airport. It touts competitive prices and same-day no delivery fees.
This story was originally published March 23, 2021 at 12:34 PM with the headline "Walmart and Harris Teeter compete for Charlotte’s top grocer. Which chain is winning?."