Publix's Big Northern Expansion

Publix Super Markets Inc.'s plans for Virginia are shaping up to include the state's densely populated northern corridor.

The Lakeland grocer — which has 770 stores statewide, including dozens in Central Florida — has hired a broker to represent it in Northern Virginia, reports the Washington Business Journal, a sister news organization. For the first time, Publix had a booth at the International Council of Shopping Centers Mid-Atlantic convention, which was held last week, according to WBJ.

A Publix spokeswoman confirmed to WBJ that the grocer's plans include Northern Virginia, though she could not speak to the District of Columbia or other parts of the Washington region specifically.

Northern Virginia and the D.C. metro area are several hours from the Richmond metro area, where Publix announced its first Virginia stores. The Virginia expansion looks like it could happen faster than Publix has historically grown in new markets, especially with a merger in the works between grocers Ahold USA and Delhaize.

The two Virginia locations it announced in Richmond and Bristol aren't too far from stores in Tennessee and North Carolina. But the D.C. metro would represent a significant push to the north and could result in additional distribution centers and other supply chain infrastructure.

An expansion of Publix's presence up the East Coast has the potential for a large impact in its Lakeland headquarters and the Central Florida area. Each new store opening creates about 100 jobs — most of them not at the store level, but in support positions, a spokesman previously told the Tampa Bay Business Journal, a sister newspaper.

An urban landscape like the D.C. metro area could pose real estate challenges, but Publix has dozens of store prototypes, ranging from 28,000 to 60,000 square feet. It's also said to be working on a small urban prototype of about 20,000 square feet, though Publix never confirmed that.

It also shows that Publix will continue to go head-to-head with some of the biggest names in the grocery business. Kroger Co. (NYSE: KR) has a significant presence in the D.C. metro market, thanks to its acquisition of Harris Teeter.

 New York-based Wegmans Foods Markets also has a significant presence in Northern Virginia. Wegmans has a cult following to rival Publix's and confirmed plans earlier this year for a store in North Carolina— marking the first time the two would be direct competitors.

Source: South Florida Business Journal