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The Disappearing Supermarket, Take Two
We recently posted about the phenomenon of the shrinking urban grocery market. Moving away from the mega-supermarket layouts of decades past, grocery chains are headed toward smaller footprints, more focused selection, and prepared meals. In cities like San Francisco, developers are buying up the big supermarket lots and erecting mixed-use buildings that sometimes—but not always—include smaller specialty markets such as Whole Foods, Trader Joe’s, or Fresh and Easy.
The San Francisco Chronicle is worried about the trend. “Boosters say those stores are no more expensive than the old neighborhood supermarket,” the piece posits, “but everyday shoppers would disagree.”
Part of the problem, the piece says, is that the “new-generation markets specialize in selling their own products. Rather than getting familiar name brand items, like Kellogg’s cereal or Velveeta cheese, patrons find store-brand offerings. Want a generic package of shredded cheddar? Sorry, not available. However, if you’d like a nice semi-soft Gouda, Whole Foods is the place for you.”
“And that’s fine,” the piece continues, “except for those on a fixed income, who are looking for toothpaste, cat food and Cheerios.”
In fact, one person quoted in the piece forecasts what he sees as a dire possibility for San Francisco:
’Are we going to become a city of farmers’ markets?’ asked Matt Holmes, a principal at Retail West Inc., a San Francisco property, tenant and real estate service. ‘What you are going to get is a series of chef-driven markets with highly specialized, prepared meals. You’ll end up canoeing to Marin to get groceries.’
By setting up a “shredded cheddar” versus “soft Gouda” dichotomy, the Chron piece invokes some—dare I say it—touchy class issues. Markets like Trader Joe’s do in fact carry “toothpaste, cat food and Cheerios,” and, at least in San Francisco, they are not significantly more expensive than the versions found at Safeway. In fact, one Seattle study found that independent stores such as Trader Joe’s “offered a greater variety of healthful foods at cheaper prices than major supermarkets.”
As for those farmers’ markets? Some people find the produce there is the same price or cheaper than at the supermarket, and it tends to be better quality. The fact that, in general, high-calorie food is cheaper than fruits and vegetables is entirely unrelated to supermarkets, and instead has everything to do with USDA subsidies.
Now, how much for that can of worms?
Posted by | Friday, September 19, 2008 at 3:14pm | 3 comments
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Well, I wouldn't consider WF or F&E 'smaller specialty' markets. Both sell a wide variety of foods with fewer non-food items (IMO a good trend).
Unfortunately WF isn't called Whole Paycheck for nothing; they often buy out smaller organic oriented markets to reduce competition. F&E does carry some non-food national brands.
Mom-and-pop ethnic markets can only compete for some of the food dollar if they own the property. A bad sign in L.A. county are the high priced chains Walgreens and CVS nuking small businesses out of corner lots and strip malls - local gov'ts greedy for tax dollars usually approve these redevelopments without adequate public review.
Other discount market chains are the main competition to higher priced T.J./F&E and even pricier big supermarket chains - they can afford the rent. They carry produce that is 'less pretty' than the big supers but it can actually be ripe at some time.
As for national name brands - SCREW EM! They are mostly overpriced products coasting on undeserved 'loyalty', brand recognition/marketing, and paid placement (displacing better/cheaper local brands on shelves).
I'm all for mixed land use, there are acres of "big box" style shopping malls in my city, none of which I'd consider pedestrian or cyclist friendly...they promote driving rather than reducing our dependence on automobiles.
Sounds to me like the article was ignoring the fact that these smaller grocery stores do carry the basics: "Markets like Trader Joe’s do in fact carry “toothpaste, cat food and Cheerios,” and, at least in San Francisco, they are not significantly more expensive than the versions found at Safeway" IMHO I'd rather see smaller stores focused on healthier, less processed foods and staples. I don't need my local grocery store to carry computers, clothes, books and hardware.
Chowhound's very own rworange did a comparison between Ferry Plaza and her supermarket last year: http://chowhound.chow.com/topics/426354