Winn-Dixie Is Tough.

Winn-Dixie is becoming a boxer that refuses to get knocked out.

After news last week that competitor Publix is buying 49 stores from Albertsons, Winn-Dixie chairman Peter Lynch released a statement saying that the move won’t impact his chain, as a majority of its stores are close enough.

After emerging from bankruptcy in 2006 and closing about 400 stores, Winn-Dixie has focused on renovating its existing 520 units. Sales have held up well: Same-store sales were up a respectable 2.2% year over year during its latest quarter, while net income came in at $15 million.

We’ve been impressed with the way the leaner chain has bounced back, considering that many in the industry were saying they didn’t expect the grocer to survive.

Do you have any insight into what they’re doing correctly, or do you think we’re completely disillusioned and that Winn-Dixie’s fortunes won’t last?


1 Response to “Winn-Dixie Is Tough.”

  1. 1 Lewis June 16, 2008 at 9:18 am

    Winn Dixie was able to unload their problem locations and the remaining real estate is pretty good. For the most part, Winn Dixie is not targeting the same customer base as Albertson or Publix. Winn Dixie targets the price sensitive and mid/low income shopper. Albertson and Publix do not cater to this customer. Publix get’s customers with customer service. No waiting at the check out. Once you get in and out you could care less that you paid $0.3 more for a can of green beans. Albertson’s was someplace in between Winn Dixie and Publix. Sweetbay was the most direct comparison to Albertson.

    The real competition for Winn Dixie will be Food Lion and Wal Mart. They go after the same customers. In Florida, Wal Mart has slowed their neighborhood store growth. Food Lion operates in North East Florida. That is the head to head competition area with Winn Dixie. If Food Lion retrenches out of Florida, Winn Dixie will be the beneficiary. Albertson’s only had a few stores in North East Florida.

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