retail news in context, analysis with attitude

The Phoenix Business Journal reports that discount food retailer WinCo Foods is planning to enter the Phoenix marketplace. One location has been identified in the northern part of the city, and the retailer reportedly has its eye on a couple of other sites.

While WinCo is seen primarily as competition to Walmart - which not only has supercenters in the area, but also Neighborhood Markets and its Supermercado and Marketside formats - there is no dearth of food stores in Phoenix.

According to the Journal, “Fry’s, a subsidiary of Kroger Co., is the most prominent large grocer operating here. Safeway, Albertsons, Walmart, Sprouts Farmers Market, Sunflower Market, Trader Joe’s, Costco, Fresh ’N Easy, Ranch Market and Whole Foods also have carved out niches, some stronger than others. Bashas’, the locally owned grocer that also operates the high-end AJ’s Fine Foods and discounter Food City, remains in Chapter 11 bankruptcy reorganization, and its future is the subject of speculation. Target continues to expand its grocery footprint, almost tripling space for food products from 8,000 to 22,000 square feet in stores not designed originally for that purpose.”
KC's View:
Just because the terrain may be crowded doesn’t mean that there isn’t room for another player ... especially one as accomplished as WinCo.