Warning signs for Harris Teeter in new Charlotte grocery market share report
Charlotte’s booming population has helped transform its grocery store landscape into a hyper-competitive battleground, as aggressive expansion from major out-of-state grocers puts significant pressure on established hometown and regional chains, according to a new report on the market.
The Charlotte region’s lucrative grocery market saw record sales of over $10.8 billion last year, a 4% increase from $10.4 billion in 2024, according to sales tracking firm Chain Store Guide’s annual report released this week.
Walmart knocked Matthews-based Harris Teeter to second place for Charlotte-area sales back in 2019, where it has stayed since.
Salisbury-based Food Lion remained in third but has been gaining ground on Harris Teeter. In fact, the latest report shows Food Lion has nearly overtaken Harris Teeter for market share.
California-based supermarket analyst Phil Lempert said the stores that survive will be those with a clear, defensible identity whether on price, such as Food Lion, Lidl and Aldi; in-store experience like Publix, and or price and convenience such as Walmart. He warned: “The ones stuck in the middle, like Harris Teeter, will have the hardest road.”
Last year was the first time Food Lion came so close over the past seven years to nearly overtaking Harris Teeter for the No. 2 spot in market share.
Lempert said the Charlotte metro area, with 3 million residents and 737 stores, has a density of roughly one grocery store per 4,000 people. That’s nearly double the industry’s rule of thumb.
Despite the current store count, Lempert believes that for a metro area growing as fast as Charlotte, “737 stores are not too many now.”
However, as competition continues to intensify, “the stores that survive will be those with a clear, defensible identity whether on price, in-store experience or convenience.”
Walmart, Harris Teeter, Food Lion sit atop Charlotte grocery market share
The top three grocery store chains in the Charlotte market — Walmart, Harris Teeter and Food Lion — account for more than half of all local grocery sales.
Walmart, which has dominated for the past seven years, had 23% market share and $2.4 billion in revenue, the same as 2024.
Since capturing the top spot, the retail giant noted it has made store upgrades, including remodels and adding technology and services. Last October, Walmart announced plans to invest $300 million to open a 1.2 million-square-foot fulfillment center that will create more than 300 jobs in Kings Mountain, west of Charlotte in Gaston County.
Harris Teeter, which is owned by Ohio grocery chain The Kroger Co., has ranked second since 2019. Last year, Harris Teeter had $1.7 billion in regional sales and 15.7% of the market share. That’s a slight drop from 15.9% in 2024.
Food Lion, based in Salisbury and owned by European company Ahold Delhaize, is third with $1.7 billion in sales and 15.5% of the market share last year, up from 15% in 2024.
Food Lion close to surpassing Harris Teeter in Charlotte-area sales
Less than $24 million separated Food Lion and Harris Teeter last year. That meant Food Lion was just 1.4% short of Harris Teeter in total market share revenue.
Back in 2019, Harris Teeter had $1.4 billion in sales for 17.6% with 62 stores, the 2020 Chain Store Guide showed. That year, Food Lion captured $1.3 billion and 16.2% of market share with 104 stores.
In 2024, the two grocery chains were separated by a $95 million difference. Food Lion came close to overtaking Harris Teeter one other time, in 2020, with a nearly $88 million separation.
A Florida grocery chain also has been shaking up the Charlotte market for over a decade, and plans to open more stores.
Publix opened its first North Carolina store in Charlotte in 2014, and quickly established itself as a top-four grocery chain with over 26 locations. Publix had 11.1% of the market share last year.
Rounding out the top 10 are Sam’s Club, 5.7%; Costco Wholesale, 4.3%; Super Target/Target, 4.3%; Lidl, 2.8%; Dollar General, 2.3%; Aldi 2.2%.
The report tracks the Charlotte region that includes Cabarrus, Gaston, Iredell, Lincoln, Mecklenburg, Rowan and Union counties, as well as Chester, Lancaster and York counties in South Carolina.
Stores see gains from value and experience
Lempert offered additional insight into what’s happening in the Charlotte market, based on the annual guide’s findings.
In the current inflationary environment, Food Lion’s focus on value and the strength of its private-label offerings are resonating with budget-conscious shoppers. “It doesn’t need to be premium. It just needs to be reliable and convenient,” Lempert said. Food Lion is focused on “affordable prices” while also investing nearly $500 million in store remodels across its Charlotte-area stores, the company said. “These remodels reflect our continued commitment to investing in the community and making shopping convenient for our customers,” Food Lion said.
This approach appeals specifically to the time-pressed, higher-income shopper who might otherwise default to Harris Teeter, Lempert said.
Meanwhile, Publix is gaining market share based on its customer service scores, store experience and a reputation for prepared foods. Publix’s plans for at least five more stores in the Charlotte region “signals confidence in the market,” Lempert said.
Harris Teeter hometown advantage could be eroding
Since Kroger’s 2014 acquisition of Harris Teeter, visible changes to stores have been minimal, Lempert said.
Food Lion, by comparison, spent nearly $500 million in local store upgrades since about 2024.
“That conservative approach preserved the (Harris Teeter) brand but may have also prevented the kind of aggressive reinvention needed to compete against Publix’s experience and Food Lion’s value,” Lempert said.
And, more damaging strategically, Kroger quietly canceled its plans in January for its $92 million automated fulfillment center in Concord that would have created 700 jobs. The Cincinnati, Ohio-based company also planned to close three currently operating fulfillment centers elsewhere.
“A direct signal that Kroger is pulling back investment,” Lempert said. Harris Teeter’s hometown advantage is eroding. “A brand that stands still in a booming metro eventually falls behind.” he said.
Harris Teeter did not respond to requests for comment about the report’s findings.
Walmart’s quiet victory amid rising competition
Walmart’s dominance is built on its supercenter format, Lempert said, using groceries as a traffic driver for general merchandise in a one-stop shopping environment.
Although Walmart’s market share has remained flat, Lempert called this a “quiet win.”
Inflation is pushing grocery bills higher, and more shoppers are buying store-brand items and shopping at discount stores. The fact that Walmart is not gaining ground suggests the market is absorbing more competition.
“Every Publix, Food Lion and Lidl opening chips away at potential Walmart grocery trips,” Lempert said.
Future grocery shake-up includes popular Wegmans
The Charlotte metro area’s 737 stores includes traditional supermarkets, dollar stores, club stores, specialty formats, and discounters.
Despite this density, the store count will continue to increase, with several grocers and chains like Sprouts Farmers Market, Whole Foods Market and Publix all announcing new store openings.
The highly-anticipated debut of Wegmans this fall in Charlotte also is likely to stir up the market.
Take a look at what happened after Wegmans opened in the Triangle a few years ago.
Since Wegmans opened its first North Carolina store in Raleigh in 2019, three more stores have opened. In 2024, the Rochester, N.Y.-based ranked sixth in the Triangle region, muscling past competitors like Publix, Lowes Foods and Whole Foods, with 5.5% market share.
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