Shortly after BI-LO’s acquisition of Sweetbay Supermarkets became final earlier this year, a fast-paced conversion began to remodel the purchased stores to the Winn-Dixie banner. The Chain Store Guide office is headquartered in Tampa, FL, so there are multiple firsthand examples of the store refreshes to be seen here in the area. However, the remodels mostly consisted of new paint colors, signage, and shopping carts. Some shoppers have even mentioned prices have actually gone up since Sweetbay became defunct. As a longtime central-Florida resident, this feels like the same old song and dance to a certain extent.

Winn-Dixie has a long history in the state of Florida. The company’s main office remains in Jacksonville, where parent company BI-LO’s main office also moved after it purchased the chain. Long before Walmart began dominating the national grocery market, W-D held a strong presence at the lower end of the price spectrum, while longtime leader Publix held the top end.  Historical Chain Store Guide market share data shows that Winn-Dixie held a 16.9% grocery share in the early 2000’s.

Currently, Winn-Dixie (along with the newly-acquired Sweetbay locations) is stuck somewhat in the middle of the Florida grocery market, which is large and lucrative. Publix is at the top and is the premier supermarket operator for more upscale shoppers. Walmart is the low-price leader. Not everyone likes to shop at Walmart’s sprawling supercenter stores, however, which are routinely crowded and sometimes lack the selection of a full-scale supermarket. The quick Winn-Dixie remodel for the Sweetbay locations seems like a possible quick reaction until a longer term strategy can be identified. BI-LO is now a top-10, $10+ billion supermarket operator with increased buying power and distribution efficiencies. The long term vision will likely be a work in progress.

Based on Chain Store Guide’s 2014 Grocery Market Share report, which analyzed fiscal 2013 data, Winn-Dixie and Sweetbay occupied the muddled middle in the Tampa, St. Pete, Clearwater metro core-based statistical area (CBSA). By default, the combined company will move into the number three operator in the area.

TAMPA-ST. PETERSBURG-CLEARWATER, FL Metro CBSA*

Counties: HERNANDO, HILLSBOROUGH, PASCO, PINELLAS – FL

*Source: Chain Store Guide 2014 Grocery Industry Market Share Report