Food Lion is finding itself (like may grocery chains) in a hard fight with Walmart Super Centers. Because Walmart is able to purchase in such large quantities it's able to purchase products at a slightly lower cost than many firms. This accompanied by their superior logistic systems helps them sell their grocery products at very competitive price.
Food Lion has always prided itself on extra low prices but has been taking a beating by low cost competitors like Walmart. The weak economy has also been plaguing Food Lion. Food Lion has been competing through convenient locations and special merchandising. For example their private label brand accounts for 20% of it's sales. The strategy of placing stores around town has enabled Food Lion to increase foot traffic. Walmart perfers to have it's customers come to it.
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