The Sunshine State of Grocery Retailing

International supermarket giant Delhaize Group (Brussels, Belgium) has announced that one of its U.S. subsidiaries, Kash n’ Karry (Tampa, Fla.), will roll out a new supermarket concept in Florida called Sweetbay Supermarket.

The first of the new stores are expected to open in Seminole, Naples and Fort Myers markets in fall 2004. The prototype is based on intense research the retailer has done to study the Florida market.

“The new brand and store concept will express the vibrant, exciting and diverse tastes, colors, and aromas of great food that are so important to Floridians,” said Shelley Broader, president and coo of Kash n' Karry. Broader, who will lead the new store development, went to Kash n' Karry in 2003 after years of experience at Hannaford Bros. Co. (Scarborough, Maine), another Delhaize property. “We could have taken the easy route, with something as simple as changing the name of the stores and giving them a light remodel,” Broader said. “But we decided to do the hard work, which is inventing a new store concept from the ground up.”

The company’s research told it that there’s a major void in the Florida marketplace. “Florida is one of the nation's most dynamic and fast-growing markets,” Broader said. “Floridians are passionate about great quality and fresh food that will fill their senses, and they are very interested in strong ethnic offerings.”

Broader said Sweetbay Supermarket's vision is based on studies into Florida shoppers' quest for more than just quality and variety. “Floridians told us they also want to satisfy their appetite for knowledge and inspiration about inventive food choices. The desire for excellent and exciting food is not related to economic status, but rather to lifestyle choices and personal interests,” said Broader.

In its initial phase, the new supermarket concept will be developed as a new brand, in addition to the existing Kash n' Karry brand, under the guidance and management of the 140-unit Kash n' Karry's senior management team. Over the next three years, the entire chain will transform to the new brand, and all new and remodeled stores will reflect the new concept and positioning, Broader said.

“Kash n' Karry is a strong regional chain with growing sales and operating profits,” Broader said, “[but] because Kash n' Karry has already closed several store properties that had been a drain on earnings and other resources, we can develop the new concept and still maintain quality with our two brands in Florida during the three year transformation.”