The History and Business Model of Xtra Super Food Center
The Xtra Super Food Center concept was originally developed by the Pueblo supermarket chain in Puerto Rico. Pueblo was the largest supermarket operator in Puerto Rico during the 1980's, and to this day they still control a large amount of the market there. Today, we'll get a small look into what Xtra Super Food Center was all about.
Concept and Origins
In the early 1980's, Pueblo began experimenting with a warehouse grocery store model in their home base of Puerto Rico, which they named Xtra. The first Xtra store opened in Puerto Rico in the early 80's. These stores were very large, ranging from 60,000-80,000 square feet, and offered a full selection of grocery products and departments, along with some extras like a full seafood department and an "in-store orange juice factory". The stores were set up and presented much like a Sam's Club is, with little effort put toward merchandise presentation and warehouse style metal shelving. Furthermore, Xtra was also operated their stores with fewer employees, yet another way they were able to reduce costs and operate using their discount format.
Expansion into the Florida Market
The Xtra Super Food Center concept worked well in Puerto Rico, so Pueblo decided to expand the concept to the US Virgin Islands, and then Florida. The first Florida location of Xtra Super Food Center opened in 1983 in Hialeah, which is located near Miami. As the 80's progressed, Xtra would open a total of 10 stores throughout South and Central Florida. In South Florida, Xtra was able to grow powerful enough to become the 4th largest grocery chain by market share in that area, behind Publix, Winn-Dixie and Albertsons. The reason that the South Florida Xtra stores started off so well was because their stores carried a large selection of Hispanic oriented foods (including hard to find Hispanic products), a selection much larger than what most other mainstream grocers in South Florida were carrying at the time. From this, Xtra began to garner a rather loyal following.
Key Store Characteristics
| Feature | Details |
|---|---|
| Parent Company | Pueblo (Puerto Rico) |
| Store Size | 60,000-80,000 square feet |
| Model | Warehouse style / Metal shelving |
| Specialty | Hispanic oriented foods |
| Market Position | 4th largest in South Florida |
The Struggle in Central Florida
While the South Florida stores seemed to have found their niche, the Central Florida Xtra stores were having a more difficult time finding a following. The first Central Florida Xtra store opened in 1986 in Winter Park. Xtra said they wanted to build three more stores in Central Florida by 1987, expecting Central Florida to be a huge hit for them much like their South Florida stores had become. However, sales at the Winter Park store turned out to be much less than Xtra had predicted, causing a stall to their grand Central Florida expansion plans. In 1989, after three years of trying to boost sales at their Winter Park store, Xtra decided to take a chance and opened a second Central Florida location in Altamonte Springs. Much like the signs that were coming from the Winter Park Xtra, the Altamonte Springs location turned out to be a big flop, becoming the shortest lived Xtra store of the bunch when it closed in late 1993.
Market Decline and Closure
The Winter Park Xtra store closed soon after in May 1994, leaving Xtra with only their 8 stores in South Florida. Even with the following Xtra was able to build for themselves in South Florida, sales at those stores also began to slip as the 90's progressed from increased pressure from Publix, Winn-Dixie, and Albertsons, all of which were embarking on large expansion projects throughout South Florida in the 90's. Xtra's parent company, Pueblo, was also having financial issues throughout the early 90's, which eventually led to them being bought out by a Venezuelan retail operator called Cisneros Group. Cisneros decided there was no hope for Xtra in Florida anymore, and they officially pulled the plug on the remaining Florida Xtra stores in March 1996.
The Aftermath and Redevelopment
Even with Xtra's former locations all being rather large compared to what most stores operated, at least 7 of their 10 locations were picked up by other grocers soon after Xtra closed. Winn-Dixie took over four that I know of, Albertsons got two, and Broward's Penn Dutch Market got one. Some of the other former Xtra buildings were either redeveloped or split.
