Cookeville developments and rumors (Clarksville, Murfreesboro: sales, 2015, neighborhood)

[Sparkman]

Kroger started a complete reset of the grocery aisles today. Will be a mess for a few weeks. I've heard rumors that a Kroger Marketplace is planned for Cookeville in the near future. I think they're waiting for the plans with Publix and the planned 3rd Walmart to finalize before they're ready to announce anything.

[tragenvol]

The plans for the third Wal*Mart have fallen through...at least for the recently planned grocery on Willow at the HRS property. Kroger Marketplace has been rumored for awhile at the property at Old Kentucky and Tenth....not sure how reliable those rumors are, but a more "posh" grocer could do well at that particular spot.

I'm a fan of Northside IGA, not the most pristine place, but a good little spot to stop in a jiffy...especially if you've left something from off your list at Kroger.

[nashvols]

Originally Posted by JMT

YES. Kroger needs to be challenged. I was living in Atlanta when Publix came sweeping into town, and it totally caught Kroger off guard. While the Cookeville Kroger is nicer than plenty of other Krogers (like the dumpy one in McMinnville), it'll pale in comparison to Publix, especially a brand new Publix. I could see Kroger building a newer store once Publix opens just out of sheer necessity.

I don't even go to Kroger in Cookeville anymore. Like you said, they hardly ever have baskets available unless you go early in the morning or super late at night. Publix customer service blows Kroger out of the water, and the quality of Publix-brand products is a bajillion times better than Kroger-brand products.

I'm not a regular Publix shopper, but what I do like about Publix is definitely their customer service attitude. Overall, they are a little more expensive than Kroger, but if you are a savvy grocery shopper (i.e. wait for sales or coupons), Publix can be very competitive there, too.

The best thing Publix has done in the Nashville market is challenge Kroger to better themselves. If you notice, Kroger has tended to renovate their stores that are close to Publix stores (mainly because they were dirty or outdated). I've also noticed that Krogers that are near a Publix offer a broader range of products, and better meat and produce.

The thing Publix did in the Nashville market is that they didn't dip their feet in the pool. They dove in. I forget when they first entered, but it isn't more than 15 years or so...and now there are 28 locations in the metro, and 2 more in Clarksville.

If/when they move into Cookeville, I wouldn't be surprised if they plan two store simultaneously.

[Jumeby]

With current economic conditions I would think the store the offers the best price, the best competitive practices and best selection would attract the most customers in town.

In Cookeville the median household income is far less than larger metropolitan regions like Nashville.

Therefore I don't see higher end (higher prices) stores being successful in pulling customers away from stores like Walmart. Kroger's draws in a healthy customer base because it offers pretty decent sales on certain items like the current bargain on rib eye roast for $5.99 lb and chicken for $0.69 lb. But Walmart has their price matching program where you can get the same sale prices at Walmart so it can be one stop bargain shopping.

[tragenvol]

Originally Posted by Jumeby

With current economic conditions I would think the store the offers the best price, the best competitive practices and best selection would attract the most customers in town.

In Cookeville the median household income is far less than larger metropolitan regions like Nashville.

Therefore I don't see higher end (higher prices) stores being successful in pulling customers away from stores like Walmart. Kroger's draws in a healthy customer base because it offers pretty decent sales on certain items like the current bargain on rib eye roast for $5.99 lb and chicken for $0.69 lb. But Walmart has their price matching program where you can get the same sale prices at Walmart so it can be one stop bargain shopping.

You're excluding the opportunity cost variable. Go to Kroger, people who shop there more times than not shop there to avoid shopping at Wal*Mart. Kroger shoppers pay a premium to shop at Kroger because the cost of the benefit outweighs the actual cost of the items they purchase as determined by their own personal calculation.

[tragenvol]

Originally Posted by nashvols

I'm not a regular Publix shopper, but what I do like about Publix is definitely their customer service attitude. Overall, they are a little more expensive than Kroger, but if you are a savvy grocery shopper (i.e. wait for sales or coupons), Publix can be very competitive there, too.

The best thing Publix has done in the Nashville market is challenge Kroger to better themselves. If you notice, Kroger has tended to renovate their stores that are close to Publix stores (mainly because they were dirty or outdated). I've also noticed that Krogers that are near a Publix offer a broader range of products, and better meat and produce.

The thing Publix did in the Nashville market is that they didn't dip their feet in the pool. They dove in. I forget when they first entered, but it isn't more than 15 years or so...and now there are 28 locations in the metro, and 2 more in Clarksville.

If/when they move into Cookeville, I wouldn't be surprised if they plan two store simultaneously.

I believe there are now three Publix stores in Murfreesboro. I would anticipate only one Publix store in Cookeville because of the market conditions, but for sure Kroger will have to up its game to be competitive.

[JMT]

Originally Posted by Jumeby

With current economic conditions I would think the store the offers the best price, the best competitive practices and best selection would attract the most customers in town.

In Cookeville the median household income is far less than larger metropolitan regions like Nashville.

Therefore I don't see higher end (higher prices) stores being successful in pulling customers away from stores like Walmart. Kroger's draws in a healthy customer base because it offers pretty decent sales on certain items like the current bargain on rib eye roast for $5.99 lb and chicken for $0.69 lb. But Walmart has their price matching program where you can get the same sale prices at Walmart so it can be one stop bargain shopping.

Statistics can be misleading. Yes, the median household income in Cookeville is low, but remember that a third of Cookeville is college students so "household income" stats are skewed downward. Let's take Lebanon, which is about the same size as Cookeville and is the closest town with a Publix, and Nashville which is booming and is considered quite young and wealthy.

Median resident age
Cookeville - 28.4
Lebanon - 37
Nashville - 33.9

Median household income
Cookeville - $26,415
Lebanon - $40,488
Nashville - $46,803

Per capita income
Cookeville - $25,417, up from $17,684 in 2000
Lebanon - $22,052, up from $20,366 in 2000
Nashville - $27,306, up from $22,018 in 2000

Median gross rent
Cookeville - $616
Lebanon - $822
Nashville - $855

Cookeville is clearly not some poverty-stricken backwater. Not only is it growing, it's growing wealthier. If a place like Lebanon can support a Publix, so can Cookeville, particularly since Cookeville is also the hub of a 14-county trade area of over 300,000. I do agree that Publix won't have much of an effect on stores like Walmart and will instead siphon customers away from Kroger. Plus, with all the Floridians who have moved to the Upper Cumberland area, there's a huge pent-up demand for Publix. And while I would dearly love to see more than one Publix in Cookeville, I agree with tragenvol that there will likely be just the one store, at least for the foreseeable future.

[Carolina Knight]

Originally Posted by tragenvol

I believe there are now three Publix stores in Murfreesboro. I would anticipate only one Publix store in Cookeville because of the market conditions, but for sure Kroger will have to up its game to be competitive.

Publix has four stores in Murfreesboro now. It entered Murfreesboro through the acquisition of two Bi-Lo stores in 2007. Only one of those stores, Publix #1163, Kensington Place, 1731 South Rutherford Boulevard Suite S, Murfreesboro, Tennessee 37130-5957, remains in operation.

[tragenvol]

I remember from a few weeks ago a national story was that a particular grocer was hurting McDonald's lunch revenues by stealing away would be McDonald's customers during lunch. I thought that's interesting, let's see what their saying about Publix...but the story was actually about Kroger....I was taken aback.

I go regularly grab lunch at Publix when in Lebanon; my frame of reference is between any Publix anywhere versus Cookeville Kroger. Publix blows Kroger out of the water so much so that I would rather go to McDonald's for lunch than Kroger. Have you ever tried picking up lunch at Kroger?

Publix has fountain drinks, soups, salads and more. Have you ever seen the salads served at Kroger? Particularly Cookeville Kroger (frame of reference).

[Carolina Knight]

Originally Posted by Sparkman

Kroger started a complete reset of the grocery aisles today. Will be a mess for a few weeks. I've heard rumors that a Kroger Marketplace is planned for Cookeville in the near future. I think they're waiting for the plans with Publix and the planned 3rd Walmart to finalize before they're ready to announce anything.

Originally Posted by tragenvol

The plans for the third Wal*Mart have fallen through...at least for the recently planned grocery on Willow at the HRS property. Kroger Marketplace has been rumored for awhile at the property at Old Kentucky and Tenth....not sure how reliable those rumors are, but a more "posh" grocer could do well at that particular spot.

I'm a fan of Northside IGA, not the most pristine place, but a good little spot to stop in a jiffy...especially if you've left something from off your list at Kroger.

Would a Kroger Marketplace at East Tenth Street and North Old Kentucky Road be an additional store?

Was the planned Walmart a Supercenter or a Neigborhood Market?