Grocery Store Attraction and DevelopmentNovember 1, 2007

Everyone spends

money on food

So why don’t we have quality food stores in every

community?

So why don’t we have quality food stores in every

community?

Some Barriers:•Crime/perception•Traditional Market Data•Securing Appropriate Development Sites•Increased Development Costs•Increased Operating Costs•Customer Diversity

Developing new food storesis difficult

Alternatives to New Stores

• Improve Existing Grocery Stores

• Improve Corner Stores

• Farmers Markets

• Mobile Markets

• Improve Transportation to Out of Area Stores

Addressing Crime

Market Research

Identifying Sites

Finding Retailers

New Store!

6. Address the perception of the area

7. Identify potential development sites

8. Research and offer incentives

9. Sell the opportunity10. Secure community

support and corporate accountability

A Coordinated Strategy

1. Identify stakeholders2. Raise awareness of

the problem3. Understand the

challenges4. Consider the

alternatives5. Understand

the market

Store Types

• Convenience Stores – 1,000 to 5,000 feet

• Full Service Grocery – smaller store with produce, meat and dairy

• Conventional Supermarket – 15,000 items, $2 million sales. 30,000 – 45,000 feet

• Superstores – >25,000 items. 45,000 – 80,000 feet or larger

• Wholesale Clubs – bulk products. Generally larger than 100,000 feet

Ownership Types

Independent Operators– Fewer than 11 stores

Chain Stores– 11 or more stores– privately held or publicly held

Cooperative Stores–Consumer owned–Worker owned

Small Independent Store

Farmer Joe’s Market, Oakland

6,000 Square foot store

1.5 acre site

Neighborhood Shopping Center

New Horizons Center

Bronx, NY

43,000 foot supermarket

130,000 foot center

10 acre site

Mixed Use Development

Housing

62,000 foot grocery Store Parking

Entrance

Fulton Street, San Francisco62,000 foot supermarket, 3 acre site

Development Incentives• Planning Support• Flexible Zoning• Fee Waivers• Land• Development Grants• Below Market

Loans

Operating Incentives• Job Training and

Placement Programs• Workforce Tax

Credits• Utility cost waivers• Commercial

revitalization programs

Community BenefitsSome Examples

• Health– Quality fresh food

– Competitive Prices

– Local producers

• Jobs– Local hiring

– Wage levels

– Benefits

– Union membership

• Community– Support for events

– Participation in revitalization efforts

• Environment– Green building

– Local suppliers

• Etc.