Grocery stores
One of the thoughtful comments made on my last blog entry on retail trends asked "why was attracting core destination grocery stores not addressed more forcefully by the city during 'boom' times." Of particular concern was the corner that Vons seems to have on the market in Westside/Downtown/Midtown area of Ventura.
"I am frustrated with Macerich and their lack of development on the 'backside' of Pacific View Mall," explains the anonymous commenter. "The point that Von's made 'payments' to keep another grocery retailer out of this area should not be so easily overlooked by city government," referring to the lease payments Vons continued to make on a vacant building on the northside of the mall.
So why hasn't the City successfully recruited more supermarkets and/or grocery stores?
Traditional supermarkets are modest contributors to sales tax revenue, since most groceries are exempt from sales taxes. Moreover, since they serve an adjacent market area, there is little net revenue in adding another to compete with the ones already there. So despite a reasonable desire among residents for wider supermarket choice, it is not been a major focus since supermarkets do not meet our top two priorities in economic development: high wage jobs and revenue that helps fund basic city services.
It's also helpful to note that new grocery stores generally follow growth, since people are actually spending less of their food dollars at supermarkets. More people are eating out (particularly young people) and more are buying their groceries at Costco, Walmart, Target and speciality retailers like Trader Joe's and Whole Foods. The majors have added very few stores outside high growth suburban areas since the last supermarket strike when so many shoppers found lasting alternatives for at least some of their shopping.
The commenter makes note of this, expressing disappointment that Trader Joe's didn't come to Downtown and Whole Foods went to Oxnard. Trader Joe's is still looking for a site and looks ready to sign for a location in Midtown. While we courted Whole Foods, we could not offer the same kind of incentive package or totally flexible site that Riverpark provided. Both the developer and the City were motivated to make them "an offer they couldn't refuse" to help get their shopping center off the ground.
Which raises the challenge of siting a grocery store. Grocery stores don't tuck into tight infill sites -- at least not yet. That's largely an economic reality -- supermarkets get lower rents because the surrounding retailers pay higher rents to share the same parking lot with a major generator of customer traffic. So add in the parking and a neighborhood and you need 10 to 15 acres -- hard locations to find or assemble in developed areas.
So even during the "boom times" it would have been a challenge to lure a new supermarket in an area without major population growth. But despite the tough economic times, there are still some positive opportunities. Besides the second Trader Joe's in Midtown, Tesco has applied to build one of its "fresh convenience" hybrid stores on Thompson near Seaward. Also, there are some struggling local markets that deserve a fresh look. The venerable Jue's Market on Main in Midtown is under new ownership and changed it's name to Green Market. The meat counter is worth a special trip, even if the variety and price of items like breakfast cereals doesn't compete well with supermarket majors. Of course, if more neighbors shopped there more, they might not be able to add lots of new products in their current space, but they could bring down their prices -- and shoppers could save money by using less gas driving to Vons or beyond. A great little produce market on Seaward in the Pierpont has quickly established neighborhood loyalty -- and, of course, we have the Downtown and Midtown farmer's markets and little stores like the new Indian grocer on Main.
So, yes, we are not likely to get a brand new 50,000 square foot Ralphs in Midtown anytime soon. But with a little open-mindedness, there are other alternatives to Vons -- and Vons deserves credit for investing recently in upgrading their local stores, even if they aren't feeling the heat of direct competition.
"I am frustrated with Macerich and their lack of development on the 'backside' of Pacific View Mall," explains the anonymous commenter. "The point that Von's made 'payments' to keep another grocery retailer out of this area should not be so easily overlooked by city government," referring to the lease payments Vons continued to make on a vacant building on the northside of the mall.
So why hasn't the City successfully recruited more supermarkets and/or grocery stores?
Traditional supermarkets are modest contributors to sales tax revenue, since most groceries are exempt from sales taxes. Moreover, since they serve an adjacent market area, there is little net revenue in adding another to compete with the ones already there. So despite a reasonable desire among residents for wider supermarket choice, it is not been a major focus since supermarkets do not meet our top two priorities in economic development: high wage jobs and revenue that helps fund basic city services.
It's also helpful to note that new grocery stores generally follow growth, since people are actually spending less of their food dollars at supermarkets. More people are eating out (particularly young people) and more are buying their groceries at Costco, Walmart, Target and speciality retailers like Trader Joe's and Whole Foods. The majors have added very few stores outside high growth suburban areas since the last supermarket strike when so many shoppers found lasting alternatives for at least some of their shopping.
The commenter makes note of this, expressing disappointment that Trader Joe's didn't come to Downtown and Whole Foods went to Oxnard. Trader Joe's is still looking for a site and looks ready to sign for a location in Midtown. While we courted Whole Foods, we could not offer the same kind of incentive package or totally flexible site that Riverpark provided. Both the developer and the City were motivated to make them "an offer they couldn't refuse" to help get their shopping center off the ground.
Which raises the challenge of siting a grocery store. Grocery stores don't tuck into tight infill sites -- at least not yet. That's largely an economic reality -- supermarkets get lower rents because the surrounding retailers pay higher rents to share the same parking lot with a major generator of customer traffic. So add in the parking and a neighborhood and you need 10 to 15 acres -- hard locations to find or assemble in developed areas.
So even during the "boom times" it would have been a challenge to lure a new supermarket in an area without major population growth. But despite the tough economic times, there are still some positive opportunities. Besides the second Trader Joe's in Midtown, Tesco has applied to build one of its "fresh convenience" hybrid stores on Thompson near Seaward. Also, there are some struggling local markets that deserve a fresh look. The venerable Jue's Market on Main in Midtown is under new ownership and changed it's name to Green Market. The meat counter is worth a special trip, even if the variety and price of items like breakfast cereals doesn't compete well with supermarket majors. Of course, if more neighbors shopped there more, they might not be able to add lots of new products in their current space, but they could bring down their prices -- and shoppers could save money by using less gas driving to Vons or beyond. A great little produce market on Seaward in the Pierpont has quickly established neighborhood loyalty -- and, of course, we have the Downtown and Midtown farmer's markets and little stores like the new Indian grocer on Main.
So, yes, we are not likely to get a brand new 50,000 square foot Ralphs in Midtown anytime soon. But with a little open-mindedness, there are other alternatives to Vons -- and Vons deserves credit for investing recently in upgrading their local stores, even if they aren't feeling the heat of direct competition.
posted by Rick Cole at
9:48 PM
2 Comments:
Of course the city can't force a supermarket chain to build a new, big store. But compare the Vons/Pacific View fiasco with how Oxnard declared one storefront in the Marketplace to be "blighted" and used redevelopment money to entice Fry's to come in.
Sure, a supermarket is not the sales tax cash cow that Fry's is. But putting a new, nice supermarket by the bus station seems like it would be a priority if we want Ventura to be a liveable community. Why we would defer to the Safeway Corporation in this matter puzzles me.
When we moved to Ventura in 2001, we insisted on being near a good elementary school, and within walking distance of a supermarket. Clearly, the big money behind Riverpark understands this. A high quality supermarket improves quality of life and thus property values.
Sales tax per square foot is misleading. When I walk to Vons, sometimes I'll stop at Cabo Beach Grill or the Eroika pet store. When I drive to Ralph's, I take my dry cleaning to Four Seasons. When I go to Lassen's, I invariably wander over to West Marine and buy a magazine, even though I don't own a boat (yet). And when I drive out to Bristol Farms, I shop at Restoration Hardware. And Cost Plus, and Sur La Table. And BevMo, which is across the street. And I do that about once a month. I don't like driving out to TO to buy cheese and vinegar, but they sell stuff I simply can't get locally.
When I drive into Oxnard to go to Whole Foods, will I spend money at the other stores nearby?
I love Ventura. I plan to stay here the rest of my life. But when I list the negatives of living here, the lack of a high quality supermarket is near the top of the list. It's a little embarrassing that we don't have so much as a Pavilions. In this regard, "Bakersfield-by-the-Sea" still applies.
I support the vision you advocate for the city. But to say that the location or quality of supermarkets isn't a priority because they don't provide "high wage" jobs is a mistake.
Why is there no mention of East Ventura? We are also seriously lacking in the way of nearby grocery options. (My closest grocery store is a tiny, hole-in-the-wall Ralphs.) The Wells Road/Saticoy area has seen a lot of recent housing development, but the closest halfway decent grocery store is Albertsons--10 minutes away. What I wouldn't give to have a new Trader Joe's on Wells between Telephone and Telegraph...*sigh*
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