‘Business Report’: Facing fierce competition, regional supermarkets beginning to act more like restaurants

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When it opens in downtown Baton Rouge in 2015, Matherne’s Supermarket—the first full-service grocery store in the neighborhood in 50 years—will look to draw large crowds with a well-researched set of boutique and basic offerings.

The 16,000-square-foot store will combine grocery staples that appeal to residents with a sushi kiosk, salad bar, juice bar, coffee shop and fresh to-go items aimed at downtown workers. Craft beers, wines and liquors are targeted at everyday patrons and hotel guests.

“It’s got all the basics, but it’s also going to be a completely new experience,” Matherne’s Highland Road General Manager Bill Hounshell, who participated in the downtown store’s development, tells Business Report in a feature from the current issue on the changing look of regional supermarkets.

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The store also will stock international cheeses and will offer a full-service deli and indoor and outdoor seating. But while the supermarket will garner attention for betting on downtown, its composition also suggests a clear direction for new and retooled supermarkets throughout the Capital Region.

The trend toward fresh, healthy, convenient and even interactive components in grocery stores has been building over the last several years. In greater Baton Rouge, behavior and expectations have changed dramatically, forcing retailers to get creative about how they keep business, says Associated Grocers President J.H. Campbell Jr.

“Whole Foods taught us all a lesson,” Campbell says about the national gourmet and health food chain that opened in Baton Rouge in 2005. “What we’re seeing now from independents is a focus on how you make things more exciting and innovative, from making your own peanut butter to your own juice. Consumers want a place where it’s fun and interesting to shop. They want a level of theater.” Read the full feature. Send your comments to editors@businessreport.com.

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