From 2000 to 2004, the number of grocery stores in the Washington region grew 10.1 percent, compared with a national average of 7.6 percent, according to Trade Dimensions International Inc., a retail research firm in Wilton, Conn. The arrival of new competitors already has slightly reduced the market dominance of Giant and Safeway.
As for the fuss over Northern Virginia: "This is a gigantic sprawl that continues to grow," said Jeffrey W. Metzger, Food World's publisher.
Betty Kang staffs the florist kiosk at a Safeway store in Hanover that adopted a new "gourmet" format. It opened in April. Safeway is cognizant of challenges from upscale grocery chains in the Washington region.
(Katherine Frey For The Washington Post)
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Metro Business: Coverage of Washington area businesses and the local economy.
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Harris Teeter, whose 50,000-square-foot stores are known for extensive wine and prepared-food departments, "is poised to become a major player in Northern Virginia," Metzger said.
He predicted that Harris Teeter, a division of Charlotte-based Ruddick Corp., will soon have more stores in the area than Whole Foods Market IP LP , which has 13. Whole Foods plans to open a store this year in Alexandrai, said spokeswoman Sarah Kenney.
Wegmans Food Markets Inc., whose 130,000-square-foot stores include full-scale groceries and extensive gourmet food and wine offerings, is considering several sites in Northern Virginia, said spokeswoman Jo Natale.
Wegmans plans to open its Fairfax City store in February and is "seriously considering" another store in Leesburg, Natale said. But Wegmans is not planning to expand rapidly. Nationwide, it opens only two or three stores a year.
Nevertheless, Wegman's is a challenge to the region's biggest supermarket chains. In 2004, its first store, in Sterling, booked sales of $114 million, more revenue than Harris Teeter's six stores combined, according to Food World. And Mark Ferrera, a Wegmans senior vice president, said the chain eventually could have as many as five stores in the market.
Other chains may spread their Washington area stores more widely over the next few years.
Gourmet grocer Trader Joe's Company Inc., which has a dozen stores in the area, is to open as many as six more by 2006, with half in Northern Virginia, said Brandt Sharrock, the chain's vice president of real estate for the East Coast and Midwest.
Shoppers Food Warehouse plans to open four to five stores a year for the next several years, said spokesman Rick Rodgers, although he would not say where. To better compete against chains like Harris Teeter and Wegmans, the chain is adding to its warehouse format stores with pharmacies and expanded bakery, produce and international food departments.
