Why Danny Wegman is 'sad' over store expansion
- Wegmans CEO didn't know that grocer is going to be in direct competition with Publix in Virginia.
Danny Wegman said he didn't know the grocer's newest store near Richmond, Virginia will put it toe-to-toe with another top grocer, Publix Super Markets Inc.
The Wegmans Food Markets CEO told the Richmond Times-Dispatch, prior to opening Wegmans' 90th store in Short Pump, Virginia, that the local grocer didn't consider further expansion until another grocer Ukrop Super Markets sold its stores in the area.
Meanwhile, ten of those stores are being bought by Publix, a Florida-based grocer ranked second — only behind Wegmans — in a survey of top grocers released earlier this year by Market Force.Publix announced the move last month.
"They are absolutely wonderful people," Wegman told the Times-Dispatch. "George Jenkins, who founded Publix, and (my) dad (Robert Wegman, who died in 2006) were like best friends. In many ways, it’s kind of sad that we will compete. We didn’t know that they were going to Richmond.
"Anyway, here we go."
Wegmans targets North Carolina for expansion
It will be the first time the two chains will have stores in the same market, although competition among the two will likely grow over the next several years, said Burt Flickinger, an industry analyst with the Strategic Resource Group.
He expects Wegmans to push further south over the next several years. Also, Wegmans said last week that it is looking at multiple new sites in North Carolina.
"Publix has not competed against an all-world retailer like Wegmans," Flickinger said. "While Publix is very good institutionally, Publix is about at least a half step behind Wegmans."
Wegmans stores on average are able double the size of Publix stores. Wegmans had annual sales last year of $7.9 billion. Publix's roughly 1,120 stores did $32.4 billion.
"Wegmans can successfully move south very efficiency and effectively before Publix achieves greater size and scale by moving north," Flickinger said.
TCLAUSEN@Gannett.com