Despite the headwinds facing many retailers, grocers seem to be among the most active in metro Atlanta with an immediate pipeline of nearly 30 new stores. The main players involved in the upcoming openings are Publix and Lidl, which together account for at least 22 new stores.
A recent report by BuildCentral indicated that Publix and Lidl were one and two when it came to ranking most active grocers nationwide. The report tracked 44 new Publix stores and 33 new Lidl stores. Aldi, Target and Amazon Grocery rounded out the top five with a combined 76 stores under construction, according to the report.
Historically, grocery stores run on very low margins with metro Atlanta seen as among one of the most competitive markets for grocery stores. Several grocers, in fact, have entered the market only to find competition too stiff and subsequently closing or selling all stores in the area. A&P, Cub Foods, BI-LO, Winn-Dixie, Harris Teeter and Earth Fare are among the brands that have exited the market entirely.
Even Walmart has struggled to get a foothold in the market with their "Neighborhood Market" banner, having closed several of the smaller format, grocery oriented stores. Target, too, has struggled with grocery with several of the company's large format, grocery-heavy "Super" Target stores having closed in metro Atlanta over the years including those in Roswell, Duluth, Stone Mountain and Morrow.
Below we take a look at who's opening, the size of the planned store and the target opening, if available.
Publix
Publix's pipeline of stores planned for Georgia will bring the grocer to more than 200 in the state. The privately held grocer has performed incredibly well during the pandemic and has been especially active in new store development in new and existing markets like South Florida where it already dominates. Several of the planned Atlanta area stores are of the grocer's latest prototype, a 48,387 square foot store, while others, like that planned for a new center in Dunwoody, are far smaller, measuring about 25,000 square feet.
In addition to growing its presence, the grocer is also using its financial might to increase its real estate holdings. In 2005, Publix owned the real estate under about 11 percent of its locations but by 2020, Publix was its own landlord at nearly 35 percent of its stores. During this same time Publix sales soared, too, from $21 billion to $45 billion with the grocer's profit nearly doubling from 4.8 percent to 8.9 percent in 2020.
East Cobb (East Cobb Crossing) 37,395 square feet - September 2021
More about this planned store can be found in our earlier coverage here
Dunwoody (Perimeter Marketplace) 25,147 square foot - October 2021
More about this planned store can be found in our earlier coverage here
Tucker (Hugh Howell Marketplace) 48,387 square feet - November 2021
The new Tucker store is meant to serve as a replacement for the current 56,146 square foot Publix at The Centre at Hugh Howell.
A Publix representative said of the planned relocation: "We are part of a redevelopment of a commercial area that gives us the ability to operate one of our newest prototypes. #544 is being replaced as it’s an older store running short on term, located mid-block, the new store is located at a true intersection making it more convenient for customers."
Avondale (Sam's Crossing) 53,785 square feet - November 2021
Chamblee (Chamblee Plaza) 41,004 square feet - Early 2022
More about this planned store can be found in our earlier coverage here
Cumming (Canton Highway & Post Road) 51,908 square feet - TBD
Athens (1000 West Broad Street) Publix would be part of Varsity redevelopment - size and start date TBD
McDonough (Kelleytown Village) 48,387 square feet - Early 2022
Summerhill 48,387 - Late 2022
West Midtown (Interlock Phase 2) 42,000 square feet - Summer 2023
Winder - (Winder Village) 48,387 square feet - TBD
Watkinsville - Publix would anchor proposed Sembler shopping center (Oconee Connector & Mars Hill Road) 48,387 square feet - TBD
Dacula (Harbins Road and Ga. 316) Publix would anchor a planned 74 acre mixed use by an affiliate of Atlanta's Watkins Real Estate - TBD
Publix opened this past October at Matt Town Center in Cumming (48,387) and November in Sandtown Crossing (48,387) along Campbellton Road in southwest Atlanta. In February, a new Publix also opened at the Shoppes at Ola Crossroads in McDonough that was also 48,387 square feet.
Sprouts Farmers Market
Georgia, currently with sixteen Sprouts stores, is the chain's sixth largest market by store count. The company announced plans March 5 to open twenty additional stores in 2021 including two in the greater metro Atlanta area. The new Georgia stores will make their debut showcasing the brand's new logo, introduced this past fall, as well as minor interior upgrades.
Buford (The Exchange at Gwinnett) 23,000 square feet - Late 2021
Smyrna (Heritage Pavilion) 18,600 square feet - Late 2021
More about this planned store can be found in our earlier coverage here
"The new Sprouts in Smyrna will be in Sprouts’ new, smaller format which highlights the unique Sprouts experience keeping fresh produce at the center of the store while emphasizing product innovation and departments meaningful to our target customers like high-quality meat and seafood, frozen items and plant-based foods. The Buford store will be similar in size and layout of existing Sprouts stores in the state. Although smaller, the Smyrna location will offer a similar amount of products as other Sprouts stores as square footage is primarily reduced in non-customer facing areas resulting in a more efficient store layout that does not include salad and soup bars, nor dining areas."
Lidl
The discount grocer entered the Georgia market in late 2017 and today operates 15 stores in the state. ToNeTo Atlanta reported January 6, 2020 that the company plans to open a 925,000 square foot distribution facility in Covington in Newton County. The new distribution facility, which is expected to generate about 270 full time jobs, will aid the grocer in their regional expansion efforts both in Georgia and the south. Over the next six to twelve months the company plans to open at least six additional stores in metro Atlanta with several others at various stages of development.
Stonecrest (6038 Covington Highway) Opened June 9th
Duluth (Marketplace Village on Peachtree Industrial Boulevard) 29,136 square feet - June 23
Roswell (The Crossings at Roswell) ~29,000 square feet - June 30
Woodstock (Bells Ferry Road) 29,136 square feet - Late 2021 / Early 2022
Buford/Lawrenceville(1945 Braselton Highway) ~31,042 square feet - 2022
Cumming (The Shoppes at Kelly Mill on Kelly Mill Road) 29,089 - Late 2021 / Early 2022
More about this planned store can be found in our earlier coverage here
Kirkwood area (Parkview Station on Memorial Drive) ~29,000 square feet - Late 2021 / Early 2022
More about this planned store can be found in our earlier coverage here
Norcross (4990 Jimmy Carter Boulevard) Current 25,800 square foot Horizon Events Center building would be expanded to about 29,000 square feet. - 2022
Evans/Augusta (4285 Washington Road) ~31,000 square feet - 2022
Sugar Hill (Northwest corner of Nelson Brogdon Boulevard & Sycamore Road) 28,179 square feet - TBD
Several other stores are in the works in Midtown, Cobb County and elsewhere in the greater metro Atlanta area and in the state.
Aldi
Buford (Marketplace at Millcreek) - 23,642 square feet - TBD
More about this planned store can be found in our earlier coverage here.
Marietta (249 South Cobb Parkway) - 20,442 square feet - TBD
More about this planned store can be found in our earlier coverage here.
Kroger
West Midtown (West Midtown Center at 17th Street & Northside Drive) - 82,000 square feet
More about this planned store can be found in our earlier coverage here.
East Cobb (MarketPlace Terrell Mill) - 95,000 square feet. The new large format store was to serve as a replacement of the nearby and very dated Delk Road "Greenhouse" store.
When reached for comment on the status of the two stores, a Kroger representative said: "We have no updates at this time."
Whole Foods Market
A new Whole Foods Market was reportedly being considered on Woodstock Road in Roswell but the deal is reportedly "dead" at the moment.
Amazon Go Grocery
The Whole Foods sibling concept from parent company Amazon has reportedly looked at several sites in metro Atlanta but has no deals done...yet.
Trader Joe's
There are no known Trader Joe's deals "done" in metro Atlanta but multiple sources familiar with the grocer's plans tell ToNeTo Atlanta that they are again "active" and looking to open 2-3 more stores in metro Atlanta in the years to come. Specific target markets for the popular grocer include West Midtown and Decatur.
Grocery Outlet
Emeryville, California-based extreme discounter Grocery Outlet is also in expansion mode and has said it's targeting new growth opportunities on the east coast. Grocery Outlet, where stores are owned by "owner/operators" [similar to Chick-fil-A], currently has more than 370 stores, primarily on the west coast, but plans to grow its currently small presence in Pennsylvania as well as enter New Jersey, in the near term. Georgia was not mentioned in recent store chatter but could very well be part of the chain's expansion strategy.
Grocery anchored shopping centers have historically been favored by investors due to their perceived protection from market disruptions and store closures. Real estate professionals tell ToNeTo Atlanta that they have seen soaring interest in shopping centers this year, specifically those anchored by grocery stores.
Several grocery anchored centers in metro Atlanta have sold in recent months including:
Alpharetta Commons (Alpharetta) - 94,500 square foot Publix anchored center sold in March for $24.6 million
Lenox Marketplace (Buckhead) - 421,000 square foot Publix & Target anchored center sold in April ( price undisclosed)
Cofer Crossing (Tucker) - 136,139 square foot Kroger & Walmart anchored center sold in May for $20 million
Roswell Market Place (Roswell) - 95,522 square foot Sprouts Farmers Market anchored center sold in June for $37.6 million. (Seller Branch Properties acquired the center for $31.7 million in March 2019.)
Atlanta-based Branch Properties, already owner of more than a two dozen largely grocery anchored centers in the southeast, is also developing several more including three of the aforementioned Publix-anchored projects.
“Our business model has long been based on developing and revitalizing shopping centers anchored by grocery stores,” said Jesse Shannon, chief investment officer of Branch Properties, developer of both Perimeter Marketplace and Hugh Howell Marketplace."
“Grocery-anchored retail has lagged behind the multi-family and industrial asset classes in terms of rent growth and exit capitalization rates for the last 10 years but has a proven history of providing strong risk-adjusted returns in times of economic disruption. The pandemic has provided an exaggerated case study on grocery performance during economic shocks. After all, food is essential to life."