GREENVILLE, S.C. – Bi-Lo officials said Wednesday that the retailer would spend $50 million on store renovations in 2011,with an eye on maximizing sales momentum brought about by a comprehensive rebranding.
At a vendor conference near the company’s headquarters here, Bi-Lo said same-store sales increased by 3.7% in 2010, as initiatives around pricing and promotions ranging from health and wellness to fuel discounts to proprietary fresh offerings took root with consumers and reversed a seven-year decline in sales. The changes are showcased in three newly renovated stores in the Greenville area, with plans for as many as 23 more renovations this year.
Bi-Lo, which emerged from Chapter 11 bankruptcy protection less than a year ago, had a capital budget of around $30 million over the past two years combined. Its plans this year include more emphasis on programs like Fuelperks, offering discounts on gasoline, a new website, and a shelf-labeling program highlighting healthy product attributes under its Thrive health and wellness program, set to launch next month.
“When I joined Bi-Lo in 2005 it was told to me that you’ve got to get out of the middle. You either had to take it to the lowest price, or gravitate up to the best service position and almost be indifferent to price,” Brian Carney, Bi-Lo’s chief financial officer, told SN in an exclusive interview. “What we ‘re trying to do with Bi-Lo is embrace the middle. We’re not denying the fact that we are in the middle. We’re not losing sensitivity to the price-conscious consumer. We understand you’re watching your household budget but we don’t think you have to compromise on quality on meat and produce, you receive the customer service you receive and the shopping experience for the sake of value.”
Carney said the company, long rumored to be for sale, could potentially be an acquirer in the years to come.
