Lowes Foods is on a mission to redefine the traditional grocery store experience. The North Carolina-based retailer, a division of Alex Lee, is an entertainment destination centered around food, according to Tim Lowe, head of Alex Lee retail and president of Lowes Foods.
Lowe spoke to The Shelby Report of the Southeast during the recent Carolinas Food Industry Council convention in Myrtle Beach, South Carolina, about the company’s focus on growth, innovation and community.
Lowes Foods is going through a period of expansion, with store openings, remodels and the introduction of new concepts.
Lowe said the retailer has completed about seven remodels this year and opened three new stores in North Carolina and South Carolina. The company is preparing a re-grand opening under the Lowes Foods banner for Foothills IGA in Marble Hill, Georgia, which it purchased in 2023.
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Transforming grocery experiences
Lowes Foods’ approach extends far beyond stocking shelves. The retailer’s “Beyond the Restaurant” initiative is transforming its grocery stores by blurring the lines between grocery shopping and dining out. By elevating foodservice offerings and creating inviting in-store environments, Lowes Foods is transforming the traditional grocery store experience into becoming community hubs.
“Our overall theme is to be an entertainment company that intersects with people around great food experiences,” Lowe said. This strategy involves hosting various in-store events, from birthday parties to culinary workshops, fostering a sense of belonging among customers.
Beyond the customer experience, Lowes Foods is investing in its brand portfolio. The company is expanding its Lowes Foods Smokehouses within stores to meet the growing demand for high-quality smoked meats.
The company also is investing in its Kj’s brand, focusing on its signature Bluebird Kitchen and new butcher shop concept, where it sells whole hogs for a complete barbecue offering.
Lowes Foods boasts a diverse portfolio of about 18 concepts, allowing individual stores to tailor their offerings to meet the specific needs of their communities.
“We’re focusing on continuing to mature those concepts and continue to take them and focus on food quality and expansion of those concepts to other locations,” he said.
Lowe emphasized the importance of understanding local preferences. Through ethnographic research, the company identifies community needs and tailors its offerings accordingly. For instance, the decision to introduce a coffee concept in a specific location was based on direct feedback from residents.
By prioritizing customer experience, community engagement and brand building, the retailer is setting a new standard for independent and regional supermarket chains.
Navigating Economic Challenges
The grocery industry has faced unprecedented challenges in recent years. Inflation, economic uncertainty and shifting consumer behaviors have forced grocery retailers to adapt. Lowes Foods is responding by offering a diverse product mix, from budget-friendly options to premium offerings, ensuring there’s something for everyone.
“You’ve got many working families, single parents, whatever it may be, that really struggle with wanting to be able to give great quality food offerings to their family but not having the time to do it. So, we’re trying to bridge that gap for them so that they get to pick and choose,” Lowe said.
To that end, Lowes Foods offers a range of prepared food options, from fresh-cut produce to ready-to-eat meals.
The company is committed to providing value and creating an “environment of normalcy” for customers amidst economic uncertainty.
“There’s so much turmoil in the world today,” Lowe said. Having a safe space, “even if it’s a grocery environment, where they can come in … and escape all the noise of life for a brief amount of time and have some place of normalcy, we think that’s pretty important.”
Leveraging technology for growth
As the industry evolves, Lowes Foods remains focused on understanding and meeting the needs of its customers. By leveraging technology and data, the company is able to optimize operations and enhance the grocery experience.
Lowe said the company is looking at using artificial intelligence to help “focus our time and energy and efforts back on the consumer.” AI can be used for behind-the-scenes functions that do not impact customers.
Lowes Foods is working toward using AI to “streamline that portion of our business so that we can continue to focus on our guests and putting them at the center of everything we do.”
By following Lowes Foods’ lead, independent and regional grocery retailers can differentiate themselves in a competitive market and drive long-term growth.
