Take a mental cruise down the Belt Highway.
How many restaurants do you pass? I don’t know the exact number, but it’s somewhere in the ballpark of a bunch.
Then consider how many grocery stores you pass. Significantly fewer, certainly less than 10.
Much has been made about the surge of restaurants, with people arguing that the city has too many places to go for dinner and some arguing there’s not enough.
I wonder, however, if the greatest potential for grabbing a portion of St. Joe’s food dollar is in the grocery aisle.
As capitalists, Americans have always been fond of competition. As food prices escalate, many residents are beginning to think a little competition might be a good thing for supermarkets.
A new store couldn’t wipe out the impact of $3.45 gasoline for foods shipped in from around the world, but another option might take the edge off.
The St. Joseph Hy-Vee must be one of the busiest stores in the entire city, achieving success with nary a TIF district or incentive package. Plenty of people predicted the upscale store, with its exotic olive bar and organic section, would never fly in down-home St. Joe. I’d say they’ve been proven wrong.
Wal-Mart has made a gigantic footprint with its everything-under-one-roof approach to retail. Other stores such as Price Chopper and Aldi appeal to shoppers looking for the lowest price.
But still, it seems like a niche is waiting to be filled. Perhaps the northeast portion of St. Joseph, growing rapidly and home to all things new, would be the most likely spot. The roads may not be equipped to handle school traffic, but where there’s profit potential, there’s a way for corporate executives. Tuscany Village’s initial business plan didn’t include a supermarket, but with easy interstate access, perhaps it should.
For awhile, The Commons on South 169 Highway was said to be a prime spot for a grocery store. Menards is known for its creative approach to low-price retail and it’s possible the store could add food offerings.
Kovac’s and Green Hills have devoted followings in neighborhood stores. Is either store considering a move to the Belt in a big way?
Food price inflation has made consumers pay more attention to their purchases. Higher prices at the pump could make them more particular about how far and how often they drive to shop. I expect more families to shift their food dollars away from carry-out and toward home-cooked meals.
We’ll be watching what happens to the supermarket market in St. Joseph.
Business editor Susan Mires can be reached
at susanm@npgco.com.
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If you want to see what true competition can mean have a Kroger, Safeway, and or Albertsons come in to the area.
Posted by phairphair on May 12, 2008 at 8:43 a.m. (Suggest removal)While each of these corporations are in business to make money their weekly leaders and specials bring big savings and advantages to the consumers. One thing for certain, when the pressure is on they all respond.
Most assuredly, Saint Joseph, could well benefit from at least one more large market retailer entering the city.
Big savings from a Kroger, Safeway, or Albertsons? Compared to who? Whole Foods?
These are the highest priced of the largest, mega-corporate grocery stores. The run a high/low pricing structure, luring shoppers with advertised loss-leader specials and then gouging them on all of their other purchases.
Did you know that over 50% of the prices you pay at those stores is gross profit for the retailer?
Posted by falcon on May 12, 2008 at 9:14 a.m. (Suggest removal)There already is a Green Hills store on the North Belt, at Karnes Road. It's not as large as Hy-Vee or Price Coppers, but it apparently has been successful at that location for a number of years.
Posted by apmastrangelo on May 12, 2008 at 10:52 a.m. (Suggest removal)phairphair - When was the last time you saw one dollar for a half gallon milk, top round beef roast for $1.77 a pound, Knorr side dish packs for 99 cents, Marie Callender frozen dinners for two dollars, or 12 packs of Coca Cola five for eleven dollars? Those are a few of last weeks specials at two of the markets mentioned.
Posted by gr8fan on May 12, 2008 at 6:44 p.m. (Suggest removal)You have one point correct, the markets are in business to make money and none of them would exist if they did not. What every consumer needs to understand is that how they spend their dollars affects the decisions of the market place. On average, the more stores have to compete the better things are for the customer and that is the issue at hand. Knowing how to take advantage of the environment through smart shopping then rests with the people.
Every store, except walmart, works on a loss-leader basis. Suck them in with specials. HyVee is the expert. They have the most overpriced food in town. Anyone could beat them. Walmart is the best bang for the buck and they'll match everyone else's loss-leaders. They may suck at running baseball teams, but I'll take them for shopping anytime.
Posted by babytger on May 12, 2008 at 10:02 p.m. (Suggest removal)How about bringing a Stater Bros to town. More competition is a good thing for consumers.
Posted by sunny13 on May 13, 2008 at 9:12 a.m. (Suggest removal)babytger: Stater Bros only operates out of So Cal. They will never work out of another region; too costly to move their goods. Same principle applies to In-N-Out - they stay in the same geographical location to maintain low prices and good quality.
Posted by biggieroth on May 13, 2008 at 10:36 a.m. (Suggest removal)I used to go to wal-mart, the aisles have become too crowded and the shoppers rather rude.
I moved my business to Hy-Vee just keep some sanity and a more pleasurable shopping experience even though I now do pay higher prices.
Posted by David on May 17, 2008 at 1:24 a.m. (Suggest removal)Southside Kovac’s! We've been shopping there for years. They have fair prices and a helpful and friendly staff. Not a thing like Wal-(China)Mart, spread out over a good sized farm with a staff that figures they have already done enough for you just by being there.
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