TAMPA, Fla. -- Kash n' Karry here said it would accelerate the conversion of its stores in the Tampa-St. Petersburg area to the Sweetbay Supermarket format.
Previously the chain said it expected to complete the conversion of the market, where it has nearly half its stores, by the end of 2007. In an earnings conference call earlier this month, however, Kash n' Karry parent company Delhaize Group, Brussels, Belgium, said it would ramp up that schedule and instead have the market completely converted to the Sweetbay banner by the end of 2006.
"Our results have been so good that we've decided to accelerate the pace," said Ron Hodge, chief executive officer, Hannaford Bros., which has been guiding its sister chain through the conversion process.
After closing about 34 under-performing Kash n' Karry stores last year, Delhaize began converting the remaining stores to the Sweetbay format, a new concept patterned after Hannaford and named after a type of magnolia tree found in the Southeast. The company began by converting existing Kash n' Karry locations in Naples, Fort Meyers and Sarasota. It now operates 17 Sweetbays, which have seen strong sales improvements over their previous incarnations as Kash n' Karry supermarkets, the company said.
A spokeswoman for Kash n' Karry said 50 Sweetbays are scheduled to open in 2006, including 45 remodels and five new stores.
After converting the Tampa-St. Petersburg market, the company plans to wrap up the transition in 2007 with the last 34 stores in areas north of Tampa, which include Ocala and Gainesville, Fla.
Additional stores may also be closed.
"We are looking at a few stores' performance, which may or may not affect their future," said Nicole LeBeau, the Kash n' Karry spokeswoman.
