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Food Lion
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Food Lion is an American regional supermarket chain headquartered in Salisbury, North Carolina,[3][4] that operates over 1,000 supermarkets in 10 states: Delaware, Georgia, Kentucky, Maryland, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia and West Virginia.[5] The chain employs over 82,000 people. It was founded in 1957 as Food Town, a single grocery store in Salisbury. It later expanded to many locations across North Carolina. It was independently operated until it was acquired by the Belgian conglomerate Delhaize Group in 1974.[6][7] In 1983, the company changed its name and branding to Food Lion to allow it to expand into regions where Food Town was already in use by unrelated stores. Following further mergers and acquisitions, Food Lion is currently[when?] owned by Ahold Delhaize, established in Belgium. The mascot's name has been Leo the Food Lion since January 17, 1997.[8]
Key Information
History
[edit]Food Lion was founded in 1957 in Salisbury, North Carolina, as Food Town by Wilson Smith, Ralph Ketner, and Brown Ketner. The Food Town chain was acquired by the Belgian Delhaize Group grocery company in 1974.[7] Due to Ralph Ketner's savvy business sense and ever-growing grocery store endeavors, initial investors of Ketner's 'Food-Town' virtually all became millionaires.[citation needed] At one point, after a large addition to his quickly growing chain of stores, Rowan County North Carolina was shown 'per capita' to contain 'the highest number of millionaires' in the United States (all attributed to those initial and early investments). His implementation of weekly (sales) flyers advertising the noticeably low-prices (as compared to other stores), in combination with literally 'plastering' nearly every square inch of each storefront with neon colored hand-lettered signage proved extremely effective. In the store, every item in the weekly sales was 'again' broadcast by custom, hand-lettered cardstock signage. The low-prices were very 'real'. while the profit per item was minimal, the number of products, meats, fresh fruits and vegetables more than made-up for the minimal profit-per-item on sales items. Ketner continually took advantage of suppliers’ small price fluctuations and continually made volume deals. Furthermore, the convenience of offering non-grocery & OTC items not usually found in grocery stores, allowed the corporation to make a healthy profit on those offerings.


The Food Lion name was adopted in 1983; as 'Food Town' expanded into Virginia, the chain encountered several stores called Foodtown in the Richmond area. Expansion into Maryland would have been a bigger problem since about 100 independent, but affiliated, stores were called Food Town. Because Delhaize had a lion in its logo, Food Town asked to use it on product labels and new store signs. Ralph Ketner realized "lion" needed only two new letters and the movement of another in the chain's signs. On December 12, 1982, Ketner announced the name change to "Food Lion," and by the end of March 1983, all stores had been rebranded.[9] The name change, while puzzling for American customers, made economic and historic sense, as Delhaize was once known as Delhaize Le Lion.
Throughout the 1980s, Food Lion expanded throughout the Mid-Atlantic and Southeastern United States. The company continued its expansion throughout the late 1980s, opening hundreds of stores in existing markets, such as the Carolinas and the Virginias, and entering new markets, such as Georgia and Maryland.
In the early 1990s, Food Lion stores appeared in new markets, such as Delaware and southern Pennsylvania; Orlando, Florida; Oklahoma City and Tulsa, Oklahoma; Shreveport, Louisiana; Dallas/Fort Worth; and Houston, Texas. (Of these eight markets Food Lion penetrated in the 1990s, the only ones that still have stores are Delaware and parts of southern Pennsylvania, such as Hanover.) During this time, the chain was the fastest-growing supermarket company in the U.S., as they opened over 100 new stores each year.[10] In November 1992, a critical PrimeTime Live report that showed unsanitary handling of meat and seafood hurt the chain as they attempted to enter new markets in the Northeast and Southwest.[11][12] (See #Primetime Live controversy)
According to some industry sources, the new stores in Texas, Louisiana, and Oklahoma were already operating below sales projections. The small, lackluster Food Lion stores were beginning to compete with national retail leaders, such as Albertsons, Kroger, Tom Thumb, and Jewel-Osco, all of which were already well-respected in the Southwest and which operated larger stores with more features, but the effects of the devastating ABC report could not be denied, and sales and revenue plummeted.[11] In the Dallas/Fort Worth Metroplex, widespread reports were given of stores sending half of their staff home early due to lack of business and of other stores with "virtually zero meat sales". In the fiscal quarter that included the Thanksgiving holiday of 1992, Delhaize America reported company-wide same-store sales declines of 9.5%.[13] As a result, Food Lion was forced to greatly scale back its expansion plans in Texas and Oklahoma, as well as delay, then cancel its planned entry into new markets in Missouri, Kansas, and Illinois.


In 1993, Food Lion agreed to pay $16.2 million to settle claims that they violated federal laws regulating unpaid overtime, minimum wage, and child labor, according to the U.S. Department of Labor. In the agreement, which at the time was the largest settlement ever from a private employer accused of violating the Fair Labor Standards Act (FLSA), the grocery chain agreed to ensure that all employees would be well-informed about their rights. Additionally, the Labor Department said Food Lion top management provided assurances that no retaliatory action would be taken against employees who filed complaints about unpaid overtime or other potential FLSA violations.[14] On January 7, 1994, Delhaize announced the first major round of store closings in what would become a yearly event. The stores to be closed included 47 of its brand-new stores in Texas and Oklahoma, as well as stores in Florida, Georgia, North Carolina, Pennsylvania, South Carolina, and Virginia.[15]
Throughout the mid-1990s, the company canceled leases for new stores and closed scores of its newly built outlets in recently established markets, such as Dallas/Fort Worth, Houston, and Oklahoma City.[16][17] Citing double-digit same-store sales declines for the quarter ending in September 1997, Delhaize announced that it was canceling its Midwest expansion, exiting all markets in Texas, Oklahoma, and Louisiana, and closing its 6-year-old distribution center in Roanoke, Texas.[18] Struggling, Food Lion was forced to recede back to the East Coast, where it faced increasing competition from competitors with larger stores, better customer service, and more variety and amenities; these included regional winners, such as Ingles, Harris Teeter, and Publix; newcomers, such as specialty retailer Whole Foods Market; and expanding national chains, such as Kroger, Target, and Wal-Mart.
Beginning in 2003, Food Lion became active in "market renewals" in which every year Food Lion picks certain cities in their operating area where they remodel stores and update the product offerings. That same year, Food Lion remodeled 68 stores in the Raleigh-Durham, North Carolina, market, followed by 65 stores in the Charlotte area in 2004. In 2006, Food Lion advanced their market renewals program by using demographic and geographic data to figure out whether certain stores should be branded as Food Lion, Bloom, or Bottom Dollar. If the data supported that an already existing Food Lion was adequate for a certain community, the location would simply be remodeled. Should the data support otherwise, the Food Lion store would be remodeled and rebranded as either Bloom or Bottom Dollar.[19] In early 2012, Food Lion closed 113 stores. These were in Georgia, North and South Carolina, Kentucky, and Tennessee, as well as all the stores in Florida.[20]
New concept, mergers and acquisitions
[edit]
In late 2013, Food Lion introduced a new concept and decor at a store in Concord, North Carolina. The first official remodel began in late 2014 to 76 of their stores in the greater Wilmington and Greenville, North Carolina, markets. In March 2015, plans were announced for remodeling of its 162 locations in the Raleigh, North Carolina, market. The Raleigh market remodels were expected to be completed in stores on a rolling basis between April and October 2015. In June 2015, it was announced that Food Lion's parent company, the Delhaize Group, and Ahold would merge into Ahold Delhaize. This merger was completed in July 2016.[21] In March 2016, the company announced that they would make a $215 million investment in its greater Charlotte-area stores and western NC stores. This included remodeling 142 stores, additional price investments, and investments in associates and the community through its Food Lion Feeds initiatives.[22][23] In July 2016, as part of the corporate merger between Delhaize and Ahold, Food Lion was required to divest 61 locations to a variety of competitors, including Supervalu and Weis Markets in Delaware, Pennsylvania, Maryland, West Virginia, and Virginia to satisfy the Federal Trade Commission's review of the two parent companies' merger.[24] Later that year, Food Lion began remodeling 93 of their stores in the Piedmont Triad region. Remodeling in the Piedmont Triad was completed in the summer of 2017. Richmond, Virginia, stores began getting the concepts implemented in 2017. On March 14, 2018, Supervalu announced that Food Lion was purchasing three Farm Fresh locations in Elizabeth City, North Carolina, and Hampton and Virginia Beach, Virginia, as part of a larger deal to close down the Farm Fresh brand.[25] On April 27, 2018, Food Lion announced plans to acquire four BI-LO locations in Florence, Myrtle Beach, Surfside Beach, and Columbia, South Carolina.[26] Furthermore, on June 3, 2020, Food Lion announced the purchase of 62 Southeastern Grocers stores in North Carolina, South Carolina, and Georgia. These stores were rebranded to Food Lion between February and May 2021.[27]

Food Lion stores can currently [when?] be found in Delaware, Georgia, Kentucky, Maryland, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.[28]
Food Lion's sister chains include Giant-Carlisle, Giant-Landover, Hannaford Brothers, Martin's Food Markets and Stop & Shop.
International stores
[edit]Food Lion spent seven years attempting to establish a presence in Bangkok, Thailand, starting in 1997. Operated locally by Bel-Thai Supermarket Co, in 2004 it withdrew from the country, selling all branches to Tops Supermarkets.[29]
Environmental initiatives
[edit]For 20 consecutive years, Food Lion has been named Energy Star Partner of the Year and has received the Sustained Excellence Award for 18 consecutive years for its sustainability efforts.[30] In partnership with parent company Ahold Delhaize USA, Food Lion aims to commit to heightened sustainability efforts, which include greater food transparency by 2025; reducing food waste by 50% by 2030 via composting, recycling and animal feed; and a 50% reduction in carbon emissions from its operations and 15% reduction for its supply chains by 2030. Since 2000, Food Lion and Feeding America have partnered to reduce food waste by donating more than 300 million meals to Food Lion's communities through their food rescue initiative. Retailers nationwide implement the food program within their local communities.[31]
Promotions and deals
[edit]Every Wednesday Food Lion renews its deals and promotions in a weekly ad.[32]
Brand partnerships
[edit]On October 6, 2021, Food Lion announced the release of Mountain Dew Uproar, a berry-kiwi flavored version of the drink, as a limited-time collaboration with PepsiCo.[33][34] The product was created with the Leo the Food Lion mascot in mind, and was available exclusively at Food Lion Stores.[35] Uproar was discontinued in July 2023.
Former banners
[edit]
Bloom
[edit]
Bloom was Food Lion's upscale grocery model that opened on May 26, 2004.
As of December 2009, 65 Bloom stores were in North Carolina, South Carolina, Maryland, and Virginia.[36]
On March 14, 2011, Delhaize announced that all Bloom supermarkets in North and South Carolina would close or be converted to the Food Lion banner.[37]
On January 11, 2012, Delhaize announced that the Bloom brand would be discontinued and that all Bloom supermarkets would either convert to Food Lion or permanently close.[38]
Bottom Dollar Food
[edit]Bottom Dollar Food was Food Lion's discount grocery model that focused on offering a limited selection of both national brands and private label products. These stores had no bakeries or delis and more items were packaged. Customers bought the bags used to sack their own groceries at Bottom Dollar Food. Stores also used alternative display and stocking techniques such as cut cases on shelves, and using pallets and dump bins to reduce costs. Food Lion opened the first Bottom Dollar Food model in High Point, North Carolina, on September 21, 2005.
As of December 2009, Bottom Dollar Food had 28 stores in North Carolina, Maryland, Pennsylvania, and Virginia.[39] In January 2012, Delhaize announced that it would close six Bottom Dollar stores and convert 22 others to Food Lion supermarkets as part of a restructuring.[40][41] In August 2014, it was reported that Delhaize was putting the entire portfolio of Bottom Dollar Food locations up for sale.[42] Ultimately Bottom Dollar Food was shuttered and the stores sold to Aldi in early 2015.
Harveys Supermarket
[edit]Harveys stores are mainly located in rural markets within the Deep South. In May 2013, all Harveys stores were sold to BI-LO LLC.
Reid's
[edit]Reid's was a small chain of stores located in various rural South Carolina communities. The chain's history can trace back to 1972, when its namesake founder Reid Boylston opened his first store in Barnwell, South Carolina.[43] Most of these stores were all formerly branded as Food Lion stores and continue to carry Food Lion branded goods and use the Food Lion infrastructure. In May 2013, Reid's was sold along with its sister supermarket chains Harveys and Sweetbay to BI-LO LLC for $265 million.[44] BI-LO subsequently retired the Reid's name, rebranding the Reid's stores as BI-LO.
Store brand
[edit]Delhaize America stores use common private brands called Home 360, Nature's Promise, CHA-CHING, and Taste of Inspirations. Sister supermarkets Hannaford and Sweetbay were the last two stores to make the switch, doing so in 2010 and 2011. The move is designed to simplify the company's store-brand products line.[45] Food Lion stores have the My Essentials brand, as well as the Hannaford brand. At the end of 2014, the My Essentials, as well as the Home 360 names, were retired and the more traditional Food Lion brand name was used as a replacement.
Slogans
[edit]This section needs additional citations for verification. (December 2020) |
- "LFPINC (LFPISC or LFPIVA)": During the Food Town era, the slogan stood for "Lowest Food Prices In North Carolina". Also, it was used in South Carolina, Virginia, and Georgia stores.
- "6800 Low Prices": late 1970s–1985
- "Extra Low Prices": 1985–2004
- "Good Neighbors, Great Prices": 2004–2011
- "Get Your Lion's Share": 2011–2014[46]
- "Easy, fresh and affordable... You can count on Food Lion... Every day": 2014–2015
- "Life's Better with the Lion": 2015–2016
- "How Refreshing": 2016–2019[47]
- "This is Our Home. That's Our Food Lion": 2019–present
Controversies
[edit]Union organizing
[edit]During the late 1980s and early 1990s, the United Food and Commercial Workers Union Local 400 alleged that Food Lion had underpaid its workers and engaged in unfair labor practices for many years. Food Lion spokesman Michael Mozingo denied the allegations, stating that "We don't pay less. Our wages are comparable in every market we operate."[48] In 1990, labor leaders in Virginia called for a boycott of Food Lion, accusing the chain of paying workers substandard wages and blocking attempts by store workers to unionize. In Belgium, labor organizers observed the American Labor Day as a statement of solidarity with Food Lion labor organizers.[49]
Primetime Live controversy
[edit]In the 1990s, Food Lion gained a degree of notoriety when it was the subject of an ABC News investigation. ABC had received a tip about unsanitary practices at Food Lion. Two ABC reporters had posed as Food Lion employees, and witnessed the unsanitary practices at Food Lion. Much of what they had seen was videotaped with cameras hidden in wigs that they were wearing. The footage was then featured in a segment on the news magazine Primetime Live, in which Food Lion employees described unsanitary practices, which included bleaching discolored, expired pork with Clorox and repackaging expired meats with new expiration dates, and the use of nail polish remover to remove the expiration dates from dairy item packages.
The company responded by suing ABC for fraud, claiming that the ABC employees misrepresented themselves; for trespassing, because the ABC employees came on to Food Lion property without permission; and for breach of duty of loyalty, because the ABC employees videotaped nonpublic areas of the store and revealed internal company information. During the court battles between Food Lion and ABC, over 40 hours of unused footage were released that helped Food Lion's case. In the unused footage, two undercover producers are seen trying to encourage violations of company policy; however, employees resisted and correctly followed sanitary practices.[50]
Food Lion was awarded US$5.5 million by a jury in 1997. The award was later reduced by a judge to $316,000. The verdict was then largely overturned by the U.S. Court of Appeals Fourth Circuit in Richmond, Virginia. According to the court: even though ABC was wrong to do what they had done, Food Lion was not suing for defamation, but rather for tort as a way to get around the strict First Amendment standards for defamation. Food Lion did this because the company was not contesting the truth of anything ABC reported in the broadcast.[51] However, the appellate court upheld the finding that the producers involved breached their duty of loyalty as employees to Food Lion, and had trespassed, awarding a nominal $2 fine.[52]
Religious discrimination
[edit]In 2014, Food Lion was sued for religious discrimination by the Equal Employment Opportunity Commission after a meat cutter at a Winston-Salem Food Lion was fired for declining to work on Sundays or Thursdays evenings. The meat cutter was a Jehovah's Witness minister who was required to attend religious services and meetings on those days. The EEOC sought back pay and compensatory and punitive damages. Food Lion agreed to pay the worker $50,500.[53][54][55][56]
See also
[edit]References
[edit]- ^ "Number of Food Lion stores in the U.S." Retrieved September 19, 2024.
- ^ "Food Lion Employees". Retrieved September 19, 2024.
- ^ "Customer Service" (Archived May 13, 2012, at the Wayback Machine). Food Lion. Retrieved on May 17, 2012. "CORPORATE ADDRESS Food Lion, LLC. P.O. Box 1330 Salisbury, NC 28145-1330"
- ^ "Contacts" (Archived May 22, 2012, at the Wayback Machine). Delhaize Group. Retrieved on May 17, 2012. "DELHAIZE GROUP U.S. P.O. Box 1330, 2110 Executive Drive Salisbury NC 28145-1330 United States" and "FOOD LION, BLOOM & BOTTOM DOLLAR FOOD P.O. Box 1330, 2110 Executive Drive Salisbury NC 28145-1330 – U.S.A. "
- ^ "Annual Report 2021. Strategic Report". Ahold Delhaize. p. 12. Archived from the original on April 29, 2022. Retrieved May 26, 2022.
- ^ "2007 Top 75 North American Food Retailers" (Archived March 7, 2007, at the Wayback Machine), Supermarket News, Last accessed February 24, 2007.
- ^ a b Collet, Emmanuel, ed. (2003). Delhaize "Le Lion", Grocers Since 1867. Delhaize Group.
- ^ "Food Lion". Retrieved September 19, 2024.
- ^ Wineka, Mark; Lesley, Jason (1991). Lion's Share. Asheboro, North Carolina: Down Home Press. pp. 148–150. ISBN 1-878086-07-3.
- ^ Tulsa World. Fallout Continues After TV Report Criticizing Food Lion Archived August 6, 2020, at the Wayback Machine, November 7, 1992. Retrieved on 2016-05-31
- ^ a b Daily Press. Food Lion Sales Sliding, May 28, 1993. Retrieved on 2016-05-31
- ^ Daily Press. Food Lion Halves Its Expansion, July 16, 1993. Retrieved on 2016-05-31
- ^ Tulsa World. Food Lion Sales Hit Hard In November, December 04, 1992. Retrieved on 2016-05-31
- ^ Dept. of Labor and Food Lion enter into $16M wage-hour settlement Archived January 20, 2008, at the Wayback Machine, Jet, August 30, 1993.
- ^ "Delhaize America, Inc, Form 10-K, Annual Report, Filing Date Mar 31, 1994". secdatabase.com. Archived from the original on May 15, 2018. Retrieved May 14, 2018.
- ^ Daily Press. Food Lion To Pull The Plug On 88 Stores, January 08, 1994. Retrieved on 2016-05-31
- ^ The Oklahoman. Food Lion Closing 11 State Stores Archived September 18, 2021, at the Wayback Machine, January 8, 1994. Retrieved on 2016-05-31
- ^ The Freelance-Star. Food Lion to pull out of Southwest Archived September 18, 2021, at the Wayback Machine, September 19, 1997. Retrieved on 2016-05-31
- ^ Delhaize Group 2006 Annual Results Archived September 28, 2007, at the Wayback Machine, Delhaize Group, Last accessed April 1, 2007.
- ^ "Food Lion closing all Florida stores". Bizjournals.com. Archived from the original on September 14, 2016. Retrieved June 24, 2019.
- ^ Ahold, Delhaize Complete Merger Archived July 22, 2016, at the Wayback Machine, Progressive Grocer, Last accessed July 23, 2016.
- ^ Food Lion Announces Plans to Remodel Stores in Raleigh, N.C., Market in 2015 Archived August 16, 2016, at the Wayback Machine, Food Lion, Last accessed July 24, 2016.
- ^ Food Lion to Remodel Stores in Greater Charlotte, N.C., Market in 2016; Invests $1.5 Million in Second Harvest Food Bank Warehouse Expansion Archived August 17, 2016, at the Wayback Machine, Food Lion, Last accessed July 24, 2016.
- ^ Delhaize Group And Ahold Reach Agreements With Buyers To Divest 86 U.S. Stores, Subject To Ft. Merger Clearance Archived August 17, 2016, at the Wayback Machine, Delhaize Group, Last accessed April 1, 2007.
- ^ "Farm Fresh selling 21 stores to Kroger, Harris Teeter and Food Lion". The Virginian-Pilot. March 14, 2018. Archived from the original on March 15, 2018. Retrieved March 14, 2018.
- ^ "Food Lion buys BI-LO stores in South Carolina". Supermarket News. April 27, 2018. Archived from the original on April 27, 2018. Retrieved April 27, 2018.
- ^ "Food Lion will buy 62 supermarket stores in three states". Salisbury Post. June 3, 2020. Archived from the original on June 3, 2020. Retrieved June 3, 2020.
- ^ "StoreData". About Us. Food Lion. Archived from the original on September 5, 2015. Retrieved July 30, 2015.
- ^ The Bangkok Post. Food Lion pulls out of Thailand, August 6, 2004. Retrieved on 2009-03-28[dead link]
- ^ Malone, Billy (April 18, 2021). "Food Lion named Energy Star Partner of the Year". The Tifton Gazette. Archived from the original on May 13, 2021. Retrieved May 13, 2021.
- ^ "Food Lion Announces Major New Sustainability Commitments" (Press release). Globe Newswire. April 19, 2021. Archived from the original on May 13, 2021. Retrieved May 13, 2021.
- ^ "FOOD LION Weekly Ad For This Week". offertastic.shop. October 25, 2022. Retrieved October 6, 2023.
- ^ "Taste the Roar with MTN DEW® Uproar, A New Refreshingly Bold Berry Kiwi Flavor Launching Only at Food Lion Stores". PR Newswire. October 6, 2021. Retrieved September 2, 2024.
- ^ Barnhardt, Adam (October 6, 2021). "MTN DEW Reveals New Berry-Kiwi Flavor". ComicBook.com. Retrieved September 2, 2024.
- ^ Russell, Zachary (April 12, 2022). "Q&A: Food Lion's one-of-a-kind Pepsi product". Store Brands. Retrieved September 2, 2024.
- ^ Bloom Store Finder Archived May 10, 2007, at the Wayback Machine, ShopBloom.com, May 14, 2007.
- ^ Delhaize to Convert Carolina Bloom Stores archived copy, Supermarket News, March 15, 2011
- ^ "Bloom Grocery Store". Shopbloom.com. April 24, 2013. Archived from the original on March 4, 2016. Retrieved December 5, 2013.
- ^ Bottom Dollar Website Archived March 11, 2021, at the Wayback Machine, BottomDollarFood.com, May 14, 2007.
- ^ Food Lion’s owner closing 126 stores, retiring Bloom banner Archived August 29, 2017, at the Wayback Machine, Washington Post, January 12, 2012
- ^ List of Food Lion and other stores to be shuttered by Belgian supermarket chain Delhaize Group[dead link] archived copy[dead link], Washington Post, January 12, 2012
- ^ Delhaize America Reportedly Mulling Sale Of Bottom Dollar Archived October 28, 2014, at the Wayback Machine Food Trade News, August 2014
- ^ "Reid's founder: Store will live on". Aiken Standard. May 30, 2014. Archived from the original on July 31, 2020. Retrieved February 26, 2019.
- ^ [1][dead link]
- ^ "Hannaford Heads to Home 360". Supermarketnews.com. October 29, 2010. Retrieved December 5, 2013.
- ^ "Get Your Lion's Share". Foodlion.com. January 29, 2013. Archived from the original on July 22, 2012. Retrieved August 18, 2013.
- ^ "Food Lion Debuts 'Refreshing' Ad Campaign". Progressive Grocer. April 5, 2016. Archived from the original on August 6, 2019. Retrieved December 7, 2020.
- ^ "FOOD LION FIGHTS UNION BATTLE, TOO". Daily Press. September 3, 1989. Retrieved April 6, 2023.
- ^ "UNION CALLS FOR BOYCOTT OF FOOD LION". News & Record. August 31, 1990. Retrieved April 6, 2023.
- ^ Goulden, Joseph C. (1997). "ABC's Food Lion Lies: A Study in TV Deception". aim.org. Accuracy in Media. Archived from the original on October 17, 2008. Retrieved 11 July 2016.
- ^ "Food Lion case". Courses.psu.edu. Archived from the original on July 16, 2012. Retrieved December 5, 2013.
- ^ "Food Lion fraud award against ABC thrown out". The News Media & The Law. Fall 1999. p. 3. Archived from the original on August 2, 2017. Retrieved August 2, 2017.
- ^ "Food Lion Sued by EEOC for Religious Discrimination". Equal Employment Opportunity Commission. Retrieved April 6, 2023.
- ^ "EEOC files lawsuit against Food Lion over firing". AP News. August 20, 2014. Retrieved April 6, 2023.
- ^ "EEOC files lawsuit against Food Lion over firing". NBC News. August 20, 2014. Retrieved April 6, 2023.
- ^ "Food Lion to pay $50,000 to worker who objected to schedule for religious beliefs". Winston-Salem Journal. July 2, 2015. Retrieved April 6, 2023.
External links
[edit]Food Lion
View on GrokipediaFounding and Early Development
Origins as Food Town
Food Town was established on December 12, 1957, in Salisbury, North Carolina, as a single supermarket by Ralph W. Ketner, his brother Brown Ketner, and associate Wilson Smith, who had previously collaborated in regional grocery operations.[4][10][11] Facing capital constraints that limited initial investment—the trio struggled to raise funds for even the first store—they prioritized operational efficiency to achieve low retail prices in a market characterized by post-World War II suburban growth, rising automobile ownership, and intensifying competition from national chains like A&P and regional players such as Winn-Dixie.[12][13] The store's model centered on bulk procurement directly from wholesalers and producers to minimize acquisition costs, coupled with stringent overhead controls including a basic self-service layout that reduced staffing needs and curtailed non-essential expenditures like extensive advertising.[11][14] This no-frills strategy aligned with broader 1950s supermarket trends but was tailored to the Southeast's price-conscious consumers, where traditional full-service grocers incurred higher labor and delivery expenses amid economic recovery and inflation pressures following wartime rationing.[15] Ketner's emphasis on volume-driven profitability—favoring high turnover at slim margins over premium pricing—proved foundational, enabling the outlet to undercut competitors and foster customer loyalty through consistent affordability in staple goods.[16][17] These principles, rooted in first-hand experience from Ketner's pre-founding roles and the era's shift toward efficient retail formats, laid the groundwork for subsequent local replication without reliance on heavy promotion or elaborate store designs.[13][18]Name Change to Food Lion and Initial Growth
In 1983, the Salisbury, North Carolina-based chain rebranded from Food Town to Food Lion amid legal disputes with Virginia-based Foodtown supermarkets and to preempt similar conflicts in states like Tennessee, facilitating nationwide trademark registration and expansion beyond regional constraints.[3][4] The new name incorporated the lion motif from its Belgian parent company Delhaize Group's emblem while enabling cost efficiencies, as store signs required only minor modifications from "Food Town" to "Food Lion."[3] This rebranding supported organic growth through de novo store constructions in new Southeastern markets, including entry into Virginia in 1978 and Georgia in 1981, emphasizing scalable replication of operational efficiencies.[19][3] Internal tactics such as computerized inventory systems for volume buying and performance-linked employee incentives drove low operating costs at 13% of sales—versus the industry average of 19%—enabling a low-price, high-volume model that averaged 20% annual growth from the late 1960s into the 1980s.[19] By late 1983, the chain operated 226 stores with annual sales exceeding $1 billion, up from 55 stores in 1977, reflecting sustained pre-acquisition momentum before further scaling to 475 stores by 1987 and $2 billion in revenue by 1986.[4][19][3]Corporate Expansion and Ownership Changes
Acquisition by Delhaize Group
In 1974, the Belgian retailer Delhaize Group acquired a 34.5% minority stake in Food Town, the predecessor chain to Food Lion, providing essential capital for expansion amid growing competition in the U.S. grocery sector.[20] By 1976, Delhaize increased its ownership to a majority controlling interest in Food Town, which had approximately 22 stores primarily in the Carolinas at the time of initial involvement.[21] This infusion of foreign investment stabilized the company's finances during a period of industry consolidation, where many independent chains faced over-leveraging and bankruptcy, allowing Food Town to pursue aggressive growth without immediate debt burdens.[3] The acquisition preserved operational autonomy for founders Ralph Ketner and partners, who continued directing day-to-day management and the low-price, no-frills model that emphasized efficient warehousing and minimal store amenities to maintain competitive pricing.[20] Post-acquisition, store counts expanded rapidly, with the chain reaching 226 locations by 1983—more than doubling from earlier levels—and sustaining a 35% annual growth rate through the 1980s under Ketner's leadership until his 1991 retirement.[4] Delhaize's European supply chain expertise contributed to cost efficiencies, supporting this scaling without eroding profit margins, as evidenced by the chain's ability to enter new markets like Virginia in 1978 and Maryland in 1984 while adhering to its discount format.[3][3] This partnership model proved causally effective for survival in a consolidating market, where domestic rivals often succumbed to acquisition pressures or inefficiencies; Food Lion's post-1974 trajectory—from roughly 100 stores in 1980 to 881 by 1991—demonstrated how targeted capital and retained local control enabled geographic penetration into the Mid-Atlantic without the over-expansion pitfalls seen in peers.[22]Key Mergers, Acquisitions, and Divestitures
In 2016, Delhaize Group, the Belgian parent company of Food Lion, merged with Koninklijke Ahold to form Ahold Delhaize, creating a multinational retailer with combined annual sales exceeding $29 billion and integrating Food Lion's operations alongside banners like Giant and Stop & Shop.[23] The merger preserved Food Lion's operational independence and brand identity while enabling supply chain synergies and cost savings estimated at €500 million annually.[24] To secure U.S. Federal Trade Commission (FTC) approval amid antitrust concerns over market overlaps in the Eastern and Southern U.S., Ahold Delhaize agreed to divest 81 stores, including numerous Food Lion locations, primarily in Maryland, Virginia, West Virginia, and Pennsylvania.[25] For instance, 26 Food Lion stores in Maryland were divested to competitors such as Weis Markets, with the transactions structured to maintain competition in local markets where the merged entity would otherwise hold dominant shares.[26] These divestitures, completed by early 2017, involved upfront buyers to expedite the process and mitigate risks of store closures during transition.[27] A significant acquisition followed in 2020, when Ahold Delhaize's Food Lion unit purchased 62 underperforming BI-LO and Harveys Supermarket stores from Southeastern Grocers (SEG) amid the latter's bankruptcy proceedings, targeting locations in North Carolina, South Carolina, and Georgia.[28] The deal, announced on June 3, 2020, and closed in staggered phases through November 2020, included 46 BI-LO and 16 Harveys stores, plus SEG's associated pharmacy assets and a distribution center, enhancing Food Lion's regional density without requiring further regulatory divestitures.[29] This move consolidated Food Lion's presence in the Southeast, where it already operated nearly 1,000 stores, by converting the acquired sites to its low-price format and leveraging existing infrastructure for efficiency gains.[30] The strategy aligned with Food Lion's emphasis on opportunistic expansion in core markets, avoiding overextension into non-traditional areas.[31]Formation of Ahold Delhaize and Recent Integrations
In July 2016, Ahold and Delhaize Group completed their merger, forming Ahold Delhaize as a multinational retail conglomerate headquartered in the Netherlands and Belgium, with combined operations spanning over 6,500 stores and serving approximately 50 million weekly customers.[32][23] Food Lion, as Delhaize's primary U.S. Southeast banner with over 1,000 stores at the time, became a key regional anchor within the new entity's U.S. portfolio, enabling cross-border synergies in procurement, supply chain efficiencies, and technology deployment without centralizing local decision-making.[25][33] The merger's "Better Together" strategy emphasized capturing €750 million in gross annual synergies by 2019 through shared best practices, while preserving brand autonomy to foster localized innovation amid rising e-commerce and discounter pressures.[34] Post-merger integrations focused on leveraging Ahold Delhaize's scale for resilience, including unified digital platforms like Instacart's FoodStorm order management system adopted by Food Lion in 2025 for omnichannel fulfillment, and AI-driven tools such as Flybuy for curbside pickup location tracking, rolled out across U.S. banners to enhance customer experience without diluting operational agility.[35][36] These efforts supported portfolio optimization, exemplified by Food Lion's 2020 acquisition of 62 BI-LO and Harveys stores from Southeastern Grocers in North Carolina, South Carolina, and Georgia, bolstering its Southeast footprint while initial merger-required divestitures of 81 overlapping U.S. stores mitigated antitrust concerns.[37][25] Recent developments underscore ongoing efficiency gains, including Ahold Delhaize USA's October 2025 announcement of an $860 million investment in a 1-million-square-foot distribution center in Burlington, North Carolina, primarily serving Food Lion with fresh and frozen goods, projected to support over 500 jobs and enhance supply chain capacity amid inflationary and competitive strains.[38][39] Such targeted expansions, coupled with selective closures in underperforming areas, have enabled Food Lion to sustain dominant market positioning in Southeastern markets—often exceeding 20% share in core metros—despite intensified rivalry from Walmart and Amazon, evidenced by 50 consecutive quarters of comparable sales growth through fiscal 2025.[40][41][33]Operations and Infrastructure
Food Lion's operations are guided by the "Count on Me" philosophy, which emphasizes reliability, inclusion, diversity, a sense of belonging, and support for associates. Core values include care, integrity, courage, teamwork, and humor. This approach fosters nourishing neighbors by delivering easy, fresh, and affordable grocery shopping experiences across the Southeastern and Mid-Atlantic regions.[42][43]Store Network and Geographic Footprint
Food Lion maintains a network of over 1,100 stores as of October 2025, concentrated in the Southeastern and Mid-Atlantic regions of the United States.[1][44] The chain operates exclusively in 10 states: Delaware, Georgia, Kentucky, Maryland, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.[45] This regional focus positions Food Lion as a dominant player in underserved suburban and rural markets, where lower real estate and labor costs enable competitive everyday low pricing strategies against discounters like Walmart and Aldi.[44] The store distribution heavily favors North Carolina, its headquarters state, reflecting a strategic emphasis on high-density coverage in core markets. Other significant presences include Virginia and South Carolina, with minimal penetration in states like Pennsylvania and Kentucky. The following table summarizes store counts by state based on October 2025 data:| State | Number of Stores |
|---|---|
| North Carolina | 505 |
| Virginia | 275 |
| South Carolina | 164 |
| Maryland | 52 |
| Georgia | 45 |
| Tennessee | 27 |
| Delaware | 20 |
| Others (KY, PA, WV) | <20 each |
