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Home » Grocery Wars Turn Small Chains Into Battlefield Casualties

Grocery Wars Turn Small Chains Into Battlefield Casualties

March 27, 2018
The New York Times

There are specials on avocados, paper towels and fried fish. Craft beer shares shelf space with cases of Genesee, a local favorite.

The clean and brightly lit store shows few hints of the financial strain the Tops grocery chain faces. The company filed for bankruptcy protection last month, another casualty in a grocery war that is raging across the country, from tiny mountainous hamlets like Chestertown to the gentrified enclaves of Brooklyn and Los Angeles.

It wasn’t long before another wobbly grocery chain buckled under financial pressure. This month, the parent company of the Southern stores Winn-Dixie and Bi-Lo said it would file for Chapter 11 protection by the end of the month, and close 94 stores.

The competition to feed American families is reaching a fever pitch, as the improving economy and shifting shopping habits send supermarkets scrambling to gain market share.

Amazon’s $13bn purchase of Whole Foods in June added a sense of urgency, raising the prospect that the e-commerce giant would find a way to upend groceries just as it has every other aspect of retail. This month, Walmart responded with its own plan to start offering an online grocery delivery service in 100 cities.

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