Investments in grocery-anchored centers grew in 2017

Investments in grocery-anchored shopping centers grew by 5.3% last year compared to 2016, according to a report issued by Chicago-based Jones Lang Lasalle (JLL). The increase makes the grocery-anchored segment one of the few retail sectors to see real growth.

The report also stated that grocery store openings declined by 29% in 2017, with several retailers cutting back on expansion plans and others shutting stores as they attempted to avoid bankruptcy.

"Grocery is considered to have a moat around it to defend against e-commerce, and because of that, these assets are seen by retail property investors as a safe investment," according to JLL.

A Supermarket News article points out investing in supermarket-anchored centers is not 100% safe, as Amazon and other e-commerce firms make inroads into the market. As a result, many shopping centers run the risk of dying, like their regional mall counterparts anchored by weak department stores.

Tops Friendly Markets (upstate New York) filed for bankruptcy last month, and Southeastern Grocers (Bi-Lo, Winn-Dixie, Harveys) may file this month. A&P, once a major player in the grocery industry, filed for bankruptcy and liquidated in 2015.

Not surprisingly, shopping centers anchored by strong operators like Whole Foods, Sprouts, Trader Joe's, Kroger, ShopRite, Wegmans and Publix are among those that have the greatest investment potential.

Eight US companies make "world's fastest growing retailers" list

Recently 24/7 Wall St. analyzed data from the National Retail Federation and released a "World's 25 Fastest Growing Retailers" list. Eight U.S.-based retailers made the cut, three of which are grocers.

Here are the eight American companies on the list:

• Albertsons Companies (5-year annual growth: 74.1%)
• Sprouts Farmers Market (47.4%)
• Southeastern Grocers - BI-LO, Harveys, Winn-Dixie, Fresco y Mas (34.6%)
• Apple/Apple Retail Stores (23.4%)
• NIKE/Direct-to-Consumer (22.3%)
• Ulta (22.1%)
• Dollar Tree (21.4%)
• Amazon (20.8%)

Delhaize considering sale of Sweetbay and Harveys

According to multiple reports today, Delhaize Group, which owns Food Lion and Bottom Dollar Food, has hired an investment bank to assist in the possible sale of its Sweetbay and Harveys brands in the U.S. Sweetbay, which is in Delhaize's Hannaford division, operates 72 stores in Florida. Harveys is in the Food Lion division and operates 73 stores, mostly in Georgia.

Bottom Dollar parent ousts 15 execs in restructuring effort

Delhaize America CEO Roland Smith sent a memo to employees last week detailing a high-level restructuring that resulted in the ouster of 15 executives. According to reports about the memo, the company failed to realize cost-saving targets that were established last year. The move follows the appointment of new presidents at Food Lion and Hannaford last month.

In addition to Food Lion and Hannaford, Delhaize America brands include Bottom Dollar, Bloom, Sweet Bay and Harvey's.

Food Lion closing 126 stores, including 2 in PA

Delhaize America announced this morning that it plans to close 126 under-performing stores in this year's first quarter as part of its "new game plan which is aimed at accelerating profitable growth." Stores set to close include 113 in the Food Lion chain, 7 in the Bloom chain and 6 in the Bottom Dollar chain.

The two Pennsylvania closings are the Food Lion stores in Sinking Spring and Shippensburg. No stores are slated to close in Delaware, which has a number of Food Lion locations. Several Food Lion stores remain in the Harrisburg, PA market.

According to its website, Food Lion operates approximately 1,300 stores in 11 Southeastern and Mid-Atlantic states under the names of Food Lion, Bloom, Bottom Dollar, Harvey's and Reid's. According to a Delhaize Group press release, the company has experienced excellent fourth quarter revenue growth at Bottom Dollar stores in the Philadelphia region. In addition, it plans to open 14 new Bottom Dollar stores in the first quarter of 2012 in Pittsburgh, PA and Youngstown, OH, and 10-15 more stores in its "newer markets" by year-end.