The last decade was unkind to Winn-Dixie, the Florida-based grocery chain that saw its footprint plummet from over 1,000 stores to just over 500. The company entered bankruptcy in 2005, and emerged in 2006 with a pared-down operating area and a plan for reinventing both its stores and its image.
That plan reached a major milestone this month with the opening of the first new Winn-Dixie store since the bankruptcy, a 55,000 square foot location in what used to be a Publix store.
"In my opinion, the company lost its way, and we're more focused on the customer now than ever," said Randy Rambo, Winn-Dixie's regional vice president. "The lesson we learned as a company is that you always have to work on being right for the customer. We talk a lot about the customer experience, and to be candid, we didn't used to talk about it. What the customer sees, feels, hears — that's all a big part of what we work on daily."
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Inside the Winn-Dixie "fresh and local" concept
Rambo said the store design and product selection are completely driven by the company's new mantra of "fresh and local."
"You walk in and you're hit by an array of colors," he said. "Fresh flowers, a gigantic fresh produce department. The deli department is twice as big as our normal deli department. There are wood floors. Basically, it's a farmer's market approach."
PHOTO GALLERY: Look inside the new Winn-Dixie design
New to the concept are a couple of additional attractions, including a giant candy shop — 20-foot-high tubes of candy adorn the walls behind the produce section, visible upon entering the store — and a 20-foot wooden wine shelf at the back of the store.
The new look bears more than a passing resemblance to up-market grocery chains such as Whole Foods and Publix GreenWise, a fact that Rambo acknowledges isn't by coincidence.
"Our strategy is to be relevant to the neighborhood we're in," he said. "In this case, there are a lot of Publix and a lot of Whole Foods customers in the neighborhood. That's our focus, as well as taking care of our existing Winn-Dixie customers."
Winn-Dixie currently operates in Florida, Georgia, Alabama, Mississippi, and Louisiana. The company is remodeling existing stores to get the "fresh and local" concept, and Rambo said it recently completed its 200th such remodel. He estimates the remodel process will be complete within the next three or four years.
"A sharp turn"
Winn-Dixie's renaissance is striking on the surface, but it is unclear whether it will be enough to remove some of the stains that have been caked onto the brand in the past ten years.
"As a Floridian, my impression of Winn-Dixie goes back to when they had a reputation for dirty shelves and selling expired products," said retail marketing consultant Susie Pecuch. "Over the last few years, their commercials have featured a message that they have listened to complaints and are cleaning up. Good for them, but the commercials still just remind me that they were dirty."
She also points out that the 180-degree turn the company is taking will be tricky to execute.
"For Winn-Dixie to go from being a grocer with a history of problems regarding food expiration dates and cleanliness, to taking on Whole Foods, sure sounds like a sharp turn to me," she said.
"Comparing Winn-Dixie to Whole Foods doesn’t make sense," said retail consultant Mike Wittenstein. "The Winn-Dixie formula was specifically designed with Winn-Dixie’s customers in mind — mainstream Americans with southern roots. Putting fun back into food and into shopping is enough to keep existing customers, and more importantly, to win the attention of new ones."
Pecuch said she is encouraged by the emphasis on healthier foods and says it is smart for any retailer to try to catch hold of that trend, but cautions that it will be difficult. Publix has struggled with its Greenwise concept, which she says hasn't resonated with customers who genuinely understand healthy and organic foods.
"If you can get the true healthy customer to see you as an alternative and an option for them, you are on your way," she said. "Their buzz would drive all levels of healthy customers toward your new concept. But Winn-Dixie, beware — if Publix struggled with this, I think you have an even steeper mountain to climb."
