Florida's Grocery Market in Turmoil: Big Chains Gain While Others Struggle

The Florida grocery market is undergoing significant changes, with several major players experiencing significant shifts in market share and store counts. Winn-Dixie Stores Inc. has filed for Chapter 11 bankruptcy and is expected to cut its store count by nearly half, while Albertsons is pulling out of the Jacksonville market and selling its remaining stores in the area. Meanwhile, Publix and Wal-Mart Supercenters are expanding rapidly and gaining market share.

Key Takeaways:

• Winn-Dixie is expected to shrink its store count from 918 to around 600, with rumors of store closures and potential name changes.
• Albertsons is pulling out of the Jacksonville market and selling its remaining stores in the area to Robert Rowe, a former Winn-Dixie executive.
• Publix and Wal-Mart Supercenters are expanding rapidly and gaining market share in Florida.
• The traditional supermarket model is being challenged by speedier and less expensive forms of retailing, such as online grocers and dollar stores.
• Regency Centers Inc. has diversified its portfolio to include more discount stores and now has a smaller exposure to Winn-Dixie.

Statistics:

• Winn-Dixie's sales in stores open more than a year slumped 6 percent in the 12 weeks ended April 6 (Source: Court filings).
• Albertsons' hold on grocery sales in Jacksonville slipped from 9 percent to less than 5 percent in 2004 (Source: Article).
• Regency Centers Inc. has over 400 grocery-store-anchored shopping centers in its portfolio (Source: Article).
• Publix is expected to have a new store every other mile in the Orlando area (Source: Real estate broker Robert Crego).

Sources:

• "Winn-Dixie Sales Slide, Plans for Cutting Costs" (Source: Court filings)
• "Albertsons Porto Rico adds convenience stores, food sales" (TICKER SYMBOL(ABS))
• "Regency Centers Inc. to Convert to Realty Trust Company" (TICKER SYMBOL(DEG))
• "Wal-Mart Plans to Expand Supercenters" (TICKER SYMBOL(WMT))