Sponsored By

Kroger to pull out of Raleigh-Durham market

Mid-Atlantic division president says area considered “overstored”

Russell Redman

June 14, 2018

2 Min Read
Supermarket News logo in a gray background | Supermarket News

Citing an intense competitive environment, The Kroger Co. plans to leave the Raleigh-Durham, N.C., market, a move that will lead to the closing of 14 stores.

The Cincinnati-based supermarket giant said Wednesday that the Kroger Mid-Atlantic division is selling all 14 stores, which are slated to close Aug. 14.

“After a thorough evaluation of the market for a significant time period, we have decided to close our stores in the highly competitive Raleigh-Durham market. While we have had some success, we have not been able to grow our business the way we would like in this market,” Kroger Mid-Atlantic President Jerry Clontz said in a statement.

“The retail environment is challenging and changing in Raleigh-Durham,” Clontz noted.  “Many retail analysts say the Raleigh-Durham market is overstored.”

Nine stores are under contract to be sold: one store to Food Lion (in Raleigh), eight stores to Harris Teeter (in Apex, Cary, Durham, Fuquay-Varina and Raleigh) and one store to Crunch Fitness (in Raleigh). Matthews, N.C.-based Harris Teeter is a subsidiary of Kroger, which acquired the chain in 2014.

“We are continuing discussions and exploring potential options for the remaining stores,” Clontz said. Kroger Mid-Atlantic worked with The Food Partners, a Washington, D.C.-based investment banking firm, as a strategic adviser for the divestiture of these stores.

Overall, Roanoke, Va.-based Kroger Mid-Atlantic has 122 stores — including 119 pharmacies and 95 fuel centers — in Virginia, West Virginia, North Carolina, Tennessee, Kentucky and Ohio. 

The closings in the Raleigh-Durham area will affect about 1,500 employees, more than half of whom are part-time, according to Kroger. The company has operated in the Raleigh-Durham market since 1989.

“We’re making every effort to assist our associates in finding employment,” Clontz stated. “We will offer job fairs and job placement services to associates. Our associates also have access to our employee assistance programs to help them manage through this process.”

Food Lion said Wednesday it plans an extensive remodel of the Kroger store it’s acquiring in Raleigh, which will offer an expanded variety and assortment of products, including more local, natural, organic and gluten-free items. The Ahold Delhaize USA supermarket chain expects to reopen the store under its banner early next year.

"We are so excited to add this new location to our network of more than 160 stores serving the Raleigh area," Food Lion President Meg Ham said, adding that the chain has operated in the market for over 40 years. “With the addition of this new store, we have an even greater opportunity to serve more customers with fresh, quality products at affordable prices every day."

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

Stay up-to-date on the latest food retail news and trends
Subscribe to free eNewsletters from Supermarket News

You May Also Like