Southeastern Grocers LLC closed its Winn-Dixie store on Edgewood Avenue North at 4 p.m. Tuesday and re-opened Wednesday morning with a new name, a new focus and a new format that might be rolled out further.
“We’re trying a format for customers shopping on a budget,” said Southeastern Grocers LLC President and CEO Ian McLeod.
Along with in-store changes made overnight by the Southeastern Grocers team, large green banners went up on the front of the Northwest Jacksonville building announcing the first Harveys Supermarket in the city. The city approved a permanent sign Wednesday.
If the format is successful, McLeod said the company might roll out the initiative throughout the Harveys chain or possibly to Winn-Dixie stores.
Before 9:30 a.m., customers were lined up for the 10 a.m. grand opening. The first 500 qualified to receive a free 12-pack of Chek soda, a longtime Winn-Dixie brand that Harveys will carry.
It was the customer base that convinced McLeod it was a good idea to transition from the Winn-Dixie banner to Harveys, which is aimed at a demographic that is strongly price-conscious.
McLeod said store management heard from customers about what they wanted. Researchers talked with shoppers and “listening groups” were formed.
The two main areas of feedback: The vegetable and greens selection and the pricing.
An example of the store’s response: A large bin of collard greens at two-for-$3, sourced from Northeast Florida, was being continually replenished within an hour of the store opening. Many shopping carts were brimming with the leafy bunches.
Inventory, displays and aisles are arranged to focus on value, such as the Big Pack Value foods, the “Pick any 5 for $19.95” meal items, the “$1 Zone” and the overall “Low and Staying Low” price pledges.
McLeod said during a store tour that many customers rely on food assistance and the company wants to provide as much value as possible for the price.
Average household income in the 32254 ZIP code is about $34,000, compared with almost $65,700 throughout Duval County. Median income is about $26,300 in the area versus almost $46,000 in the county. Those numbers are from incomebyzipcode.com, citing U.S. Census Bureau data.
City Council member Reginald Brown called Harveys “definitely a great addition to this community” and told McLeod he wants more stores in District 10.
The store’s overall product mix is chosen to respond to customers’ requests, including more smoked meats and pork and poultry items.
Hot deli food and grab-and-go sandwiches are designed to make it easy for workers in the industrial area near the store in the Commonwealth Shopping Center. A small area of tables and chairs is at the front of the store.
Among the food samples Wednesday was Jerome Brown BBQ Sauce, represented by District 8 Council member Katrina Brown, daughter of the founder.
The store opened on Edgewood Avenue North as a Winn-Dixie in 1984 and converted to the chain’s discount SaveRite banner for several years. Records show the SaveRite stores reverted to conventional Winn-Dixies in 2011.
McLeod said customers asked him not to bring back SaveRite for several reasons, including they had to pay for shopping bags.
He said the company converted the store to a Harveys, rather than redefining a Winn-Dixie, to avoid confusing the brands.
McLeod said Southeastern Grocers does not discuss investment costs. City records show three building permits were issued since April 27, totaling more than $23,000 for mechanical and electrical work and a fire-suppression system, at the store. The sign approved Wednesday is a $10,000 job cost.
Much of the upgrade appears to be painting, which McLeod said started earlier, along with cleaning, freshening, rearranging, organizing and product assortment. Deli and bakery area fixtures were upgraded to support expanded offerings.
Harveys is another example of the company’s focus on neighborhoods. In February, it opened a pilot Winn-Dixie store in Southside at Baymeadows Road and Interstate 295 that caters to a more affluent customer.
In that 32256 ZIP code, average household income is almost $77,700 and the median is almost $54,700.
“Winn-Dixie had this homogeneous approach –– one size fits all,” said McLeod, who came to Jacksonville in March 2015 to lead the parent company. “One size doesn’t fit anyone.”
Asked why Southeastern Grocers chose the Northwest Jacksonville store for the pilot Harveys, McLeod said he was paraphrasing the founder of the popular IKEA home furnishings company.
“Anybody can buy a sofa for $300. It takes real skill to buy one for $50,” he said.
In other words, he said, “it’s very easy in retail to be seduced by the high-end.”
Lesser-income areas are opportunities for attention, too, he said. “Shoppers on a tight budget don’t need a tired old store.”
The focus at the Jacksonville Harveys is on “bright, fresh, clean, friendly, good service and good value,” he said.
The 70 former Winn-Dixie employees remain at the store, along with store manager Lorin Leuthold. The pharmacy remains open.
By 11 a.m. Wednesday, the seven checkout lanes were queued up and the service counter had a long line, too. Managers wheeled out a portable checkout stand and register to create a ninth option.
Some customers in line and associates at the registers were dancing to the grand-opening band at the front of the store.
Southeastern Grocers formerly was Bi-Lo Holdings, which was formed in 2012 with the merger of Winn-Dixie and Bi-Lo. It bought Harveys in 2013. The corporate name was changed in May 2015.
Southeastern Grocers operates more than 750 stores in seven Southeastern states, including 57 Harveys in Florida, Georgia and South Carolina. The closest Harveys to Jacksonville are in Folkston, Ga., and Lake City.
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