Of the various stores you shop at, supermarkets might get most of your money.
You can splurge on a new outfit at Old Navy when you pass one at the mall. And you can grab some scented candles on a whim when you happen to be in a shopping center with that type of specialty store.
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But for the most part, the supermarket is probably a place you head to weekly, or multiple times a week, to stock your pantry and fridge. And at a time when groceries are expensive (thanks, stubborn inflation), you probably want choices.
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Even though it’s far from a cheap prospect to open a supermarket these days, a number of chains are expanding in response to consumer demand.
Aldi, for example, is in the midst of a major U.S. expansion that should see it open 225 new stores in 2025. Trader Joe’s, meanwhile, is planning to open 21 locations before the year comes to a close.
Popular online grocer debuts first-ever physical store
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Grocery stores face challenges
Though supermarkets are the epitome of an essential retailer, that doesn’t mean strong profits are guaranteed.
If you drive around your neighborhood, how many competing grocery stores will you stumble upon? Four? Five? Eight?
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And let’s not forget about specialty food stores.
Those may not compete with large supermarkets directly. But that beloved cheese shop in the center of town is probably taking some business away from Kroger, or ShopRite, or Publix, or whatever grocery store most of the people in your neighborhood tend to shop at.
For new supermarkets to thrive, they need to have a hook. That could be low prices, unique products, or a solid reputation.
FreshDirect to open its first in-person store
When there’s a lot of hype about a new business opening in town, it can set the stage for success.
FreshDirect has carved out a reputation as a reliable, affordable source of online groceries.
Before the days of ordering on Instacart, there was FreshDirect, which changed the face of grocery shopping for consumers in New York City and the surrounding areas.
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Anyone who’s ever tried to navigate a New York City supermarket knows full well that the selection stinks, the aisles are crowded, and the prices are high. There’s also the problem of getting those groceries to your door after you’ve purchased them.
FreshDirect solved that problem by giving customers an online marketplace to order groceries from.
These days, customers in not just New York City, but nearby Long Island, New Jersey, Connecticut, and Pennsylvania, among other locations, can order fresh groceries to be delivered to their door at prices that are competitive with, or in many cases better than, local supermarkets.
Now, FreshDirect is giving customers the chance to shop for groceries themselves rather than be limited to delivery only. The company just announced that it will be opening its first physical store in Southampton, a city on Long Island.
There’s a catch, though.
FreshDirect isn’t committing to staying put. Its brick-and-mortar location is being billed as a pop-up store, with plans to welcome customers starting in late May through the end of December. Beyond that point, it’s unclear as to what will happen.
For now, though, customers can visit FreshDirect and enjoy the selection of local products and fresh foods it’s known for. The new location will feature an array of seasonal items from regional farms and have a coffee counter serving drinks and prepared goodies.
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At a time when consumers are favoring groceries over restaurant meals, the decision to open a physical store is a smart move on FreshDirect’s part. And if its initial brick-and-mortar location takes off, it could pave the way for additional stores where FreshDirect fans can shop in person.
