Aldi remodeling stores ahead of Lidl openings

In February, Aldi reported that it would spend $1.6 billion to remodel stores and expand its perishables offering. More recently, reports indicate that the company is focusing on areas where Lidl is expected to open stores in the next 6-12 months.

For example, The Charlotte Observer reported that Aldi plans to spend $48 million to remodel 31 stores. In addition, the Raleigh-based News & Observer said that Aldi will spend $13 million to remodel 12 area stores, and local reports state that Aldi plans to spend $14 million on remodels in the Greensboro/Winston-Salem area. These North Carolina markets represent three of the areas where Lidl is expected to open some of its first U.S. stores.

Aldi's remodeling efforts are also underway in Eastern Pennsylvania, where Lidl has several stores planned.

Kroger to purchase Harris Teeter supermarkets

Cincinnati-based Kroger has agreed to purchase North Carolina-based Harris Teeter for $2.5 billion, or $49.38 per share plus the assumption of $100 million in debt. Kroger is the largest traditional grocery chain in the U.S. with approximately 2,500 supermarkets in 31 states.

According to reports, Kroger likes Harris Teeter's strong position in growing markets, like the Mid-Atlantic and Southeast. Acquiring the company allows Kroger to enter certain markets - like Washington D.C. and Charlotte, NC - less expensively than through new store development.

Kroger is expected to retain the Harris Teeter name, and although Kroger mostly operates unionized stores and Harris Teeter does not, analysts don't believe the Harris Teeter stores would become unionized.

Harris Teeter currently operates over 200 stores in eight states and the District of Columbia.

Swiss Farms debuts drive-up grocery

The first of five Swiss Farms stores planned for Charlotte, NC that feature a drive-up grocery opened last week. According to its website, the company, based in Broomall, PA, "has been a drive-thru tradition of quality and convenience since 1968." In addition to the new location in North Carolina, there are currently 13 Delaware County stores. Additional expansion is planned for New Jersey.

Swiss Farms stores carry about 800 grocery items, including such staples as milk, bread, eggs and cereal. Customers drive up to a window and place their orders, which are brought to them by store employees.