Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/74664
The challenge for potential downtown retailers involves serving two masters: a daytime population of office workers seeking take- out food, and residents. nesters doing more-serious grocery shop- ping on the other. Foodies moving into downtown apartments and condos want the type of upscale fare available at Whole Foods and Trader Joe's, but so far these chains have largely shunned downtown locations. Instead, Whole Foods, for in- stance, has targeted areas between down- town and the suburbs in several locations, including Detroit and Oklahoma City. Whole Foods is opening its first store within Detroit's city limits, at 21,000-square-feet, early next year, supported by some $4.2 million in city-sponsored tax credits and incen- tives. In March the company opened a 41,000-square-foot store next to the huge Chesapeake Energy corporate campus just east of Oklahoma City's up- scale Nichols Hills. Still, the Detroit and Oklahoma City downtowns remain de- void of true full-service grocery options. More-value-oriented grocery chains have been the leaders of this charge into the downtowns, but their success has been mixed. In August 2009 Schnucks, a St. Louis–based private chain of 90 supermarkets, opened the first grocery store ever in downtown St. Louis. But the 28,000-square-foot store is generat- ing the chain's highest traffic volume and yet its lowest sales, according to retail consultant Larry Lund, president of Real Estate Planning Group. "The office pop- ulation is showing up at lunchtime want- ing sandwiches and pizza," Lund said. The chains are having difficulty striking the right balance, he says. In a 2007 study he conducted of the city of Pitts- burgh, Lund made recommendations against the four potential downtown development sites the city proposed. The 3,100-square-foot Rosebud Fine Food Market and Deli opened in March 2008 but had closed by March 2010. To be sure, there have been plenty of other false starts and failures. A Hartford, Conn., grocer ran into trou- ble just six months after opening. The 8,100-square-foot, upscale Market at Hartford 21 was the downtown's first grocery store, but various challenges to the store's format and equipment forced its owners to close down. "Grocers, given their industry and low margins, find it tough to survive without scale to maximize their buy- ing power, so it's not surprising to see Your Florida Partner www.intracoastalmall.com Intracoastal Mall North Miami Beach Sunny Isles Blvd. & Intracoastal Waterway * Dinner, drinks and a flair for fashion Join Old Navy, T.J. Maxx, Duffy's Sports Grill, Winn Dixie & others Leasing Inquiries: Ruben Suarez, Senior Leasing Associate 305.779.3188, rsuarez@crec.com Outparcel inquiries: Michael Larsen, Director of Acquisition 813.676.8482, mlarsen@debartolodevelopment.com AUGUST 2012 / SCT 31 Under New Ownership & Management