At the newly revamped Lakeland, Fla.-Winn-Dixie, shoppers found a
brightly-lit produce section and its new exotic offerings, a
beefed-up selection of organics and wine, and a vibrant color
scheme, reports The Ledger.
"I've known this store since it was really bad, and it's really
nice now," said Sandy Turner, 72, of Lakeland. "My gosh, what a
change."
That kind of response is exactly what Winn-Dixie is looking for as
the Jacksonville-based chain continues to revamp its stores and
image since emerging from bankruptcy in late-2006.
The Lakeland store, at 2630 U.S. 92 E., is the first Polk County
location to receive a face-lift. Winn-Dixie has transformed 47 of a
total 520 stores since the remodeling project began last spring;
another 50 or so will be finished by the end of June, a spokesman
said.
E.J. Johnson, director of the Lakeland store, said it took about
four months to remodel the 57,000-square-foot location (it stayed
open the entire time), with the comprehensive changes including new
Hispanic and natural food sections, expanded produce and floral
departments, an additional entrance, and remodeled bathrooms.
"Fresh and clean, that's what we're looking for," Johnson said. "We
just kind of went across the board."
Company officials say the new look is paying off, with sales up an
average 12 percent at remodeled stores, according to Winn-Dixie's
most recent earnings release in February.
Despite that progress, the chain ranks a distant third in market
share among Florida grocers behind leader Publix Super Markets and
Wal-Mart Supercenters, according to the most recent figures from
the Shelby Report of the Southeast, a trade publication covering
the retail food industry. Winn-Dixie operates 358 Florida stores
(including 11 in Polk County) and controls 14 percent of the
market, versus 665 stores and a 40 percent share for Lakeland-based
Publix.
Winn-Dixie also has closed or sold about 400 locations (including a
Bartow store) since its pre-bankruptcy days, and same-store sales
growth was an anemic 0.5 percent in its fiscal second quarter. The
company's stock closed at $17.73 per share Wednesday -- down 13
cents -- compared with a 52-week low of $14.45 and a high of
$32.40. Observers also say the company faces a significant
challenge in changing its reputation of messy, poorly-managed
stores.
"They're working hard and doing what they need to do, but there's
really some question as to whether they'll be able to survive in
the end. A lot of it is getting former customers to try them
again," said Mindy McBain, associate editor for the Gainesville,
Ga.-based Shelby Report. "Maybe it's too little, too late to get
their core customers back or get new customers to try their
stores."
The struggling economy presents another issue, McBain said.
Customers looking to trim their grocery spending will likely bypass
Winn-Dixie for Wal-Mart or even Aldi, the discount German chain
that plans to open 25 Florida stores (including one in Lakeland)
this year, she said. "That's the problem: They have a lot of good
competitors," McBain said.
However, longtime Winn-Dixie shoppers such as Timothy Pierce say
the improved stores are a step in the right direction.
"To me, they've got Publix beat hands down," said Pierce, 57, of
Lakeland, as he visited the remodeled store Wednesday. "If they do
all of their stores like this, they'll do well. It's like they got
more spunk now."






