Regional grocer Fareway Stores is strengthening its presence in regions where it already has a significant foothold.
Fareway debuted seven new stores in 2022 and five in 2023, and the grocer has been plotting further growth across the Midwest for nearly three years.
With Walmart snagging more and more grocery dollars and the proposed Kroger-Albertsons merger looming over the industry, regional grocers are working overtime to cement their presence as well as their customer base. While Fareway’s growth isn’t stretching beyond states that border its home state of Iowa, the grocer is making an effort to further solidify loyalty among Midwestern shoppers.
Fareway is also facing stiffer competition from other regionals such as Hy-Vee, which expanded its footprint to Indiana with the recent acquisition of Strack & Van Til, a 22-store grocery chain. Like Fareway, Hy-Vee touts multiple formats, including its discount chain Dollar Fresh Market, its convenience store chain Fast & Fresh and its urban market Fourth and Court.
Fareway Stores footprint
While the majority of recently opened stores and planned ones are Fareway’s traditional Grocery & Meat supermarkets, the grocer is also introducing its specialty Meat Market and Spirits & More banners to more areas.
Fareway’s Meat Market, which is smaller than its traditional store model, centers on the butcher experience with a full-service counter. Meat Markets announced in the last 2.5 years have not exceeded more than 9,000 square feet while the traditional stores have ranged from 10,000 square feet to 24,000 square feet.
Some states are exclusively home to the grocer’s Meat Market banner, including Kansas and Missouri. However, the grocer hopes to soon change that for the former state.
In February, Fareway announced it would submit an application for the development of a full-service Fareway Meat & Grocery store in Basehor, Kansas, marking the debut of the banner in the state. The store would be Fareway’s second brick-and-mortar location in the state.
Store types Fareway has announced plans for since 2022
Minnesota, home to seven Fareway storefronts, debuted its first Fareway Meat Market in the fall of 2022, showing how the regional grocer is bolstering its presence in a pre-established region.
Fareway has only opened one Spirits & More location over the past two years. That location debuted in Owatonna, Minnesota, in January 2022, spanning 2,500 square feet. These stores offer a variety of wine, craft beer and an expanded liquor section as well as other “specialty and exclusive items,” according to the grocer.
Status of Fareway stores announced since 2022
Alternative formats have been a popular way for regional grocers to expand their store counts, giving them the opportunity to reach new customers without having to leave their operating regions. However, some regionals are closing their specialty stores.
Earlier this month, Schnuck Markets announced plans to shutter its Eatwell Market banner, which focused on natural and organic foods. Publix discontinued its GreenWise Market concept last year and converted the storefronts to its traditional supermarket brand.
But Fareway is holding tight to its multiple concepts portfolio, indicating there are still opportunities for grocers to venture beyond their traditional formats.
Currently, Fareway operates more than 130 brick-and-mortar stores across seven states and, so far for 2024, has announced five upcoming locations, with one to open in 2026.
