Food Fight, Who Will Win Out in the Grocery Battle?

By Timmy Watson in News on Feb 3, 2007 4:05PM

Dominick’s announced on Friday that they will be shutting 14 stores in the area, leaving approximately 600 people without work. The grocery store, owned by Safeway, is not necessarily cutting back. They indicated they are cutting the stores that aren't performing in the hopes that it will boost their efforts for expansion. According to Crain’s, the company has closed nearly 20 stores in the past five years.

Jewel Osco, on the other hand, is in the middle of a big roll out in the area. One issue with declining sales in the grocery store market has been the growth of big box stores and their introduction of more and more grocery items. The surge in popularity of organic food has also taken a dent out of the more traditional supermarket.

As a traditional grocery store, Dominick’s seems to be in the best position to capitalize on the organic food market. They have been adding their “Lifestyle” label to many of their stores, which means larger space and a good amount of organic and natural foods. It is much cheaper than say, Whole Foods, and a little more pleasant than a visit to Jewel Osco. You also have Peapod, which will probably always retain a tiny corner of the market. But, will the big box stores render all of these obsolete, as supermarkets have done to mom and pop stores in the past? We haven’t quite found our niche; depending on our mood we may visit any of these. What about you? Have you chosen sides?

Photo via swanksalot.