by emersonbiggins » Thu 12 Jul 2007, 13:45:08
That's right, a city of some 850,000 no longer has the wherewithal to keep a chain grocery store open. This should be the bohemian dream: an opportunity for relocalization of the food distribution and sales network but, sadly, this ending is likely in the cards for most cities (& indeed suburbs) of the 21st century.
$this->bbcode_second_pass_quote('', '[')b]Grocery closings hit Detroit hard City shoppers' choices dwindle as last big chain leaves. National chains stay away from Detroit
Here are some reasons cited by national retail experts on why brand supermarket chains avoid Detroit:
$this->bbcode_second_pass_quote('', '#') Net profits at supermarkets run 1-5 percent of revenue. If shoplifting by customers and employees runs 7-8 percent, the store is doomed to lose money.
# High cost of maintaining security for the stores, something most suburban locations don't need. Shopping carts often disappear, at a cost of $300 per cart.
# Personal safety for employees, with robberies, thefts and assaults both inside and outside the stores.
# Difficulty finding qualified managers willing to run Detroit stores. Most prefer the suburban locations.
# Problems seeking qualified workers for the stores. It can be a major undertaking to find employees who can pass reading, writing and math tests along with credit, criminal background and drug tests. And there is a constant turnover of employees at stores in the city. "It's a human resource nightmare," said David J. Livingston, a supermarket expert from Wisconsin.
# Declining population. No national chain wants to move into an area that is losing population.
# Lower per-capita income. That means less expenditure on food.
# Racism and discrimination accusations. If the store raises its prices because of higher costs of doing business, it is often charged with gouging the poor.
# A well-publicized violent crime or armed robbery can cost the store 10 percent of its business. Three such crimes, experts say, and the store may as well close its doors.
Source: Supermarket experts
Brandy Baker / The Detroit News
DETROIT -- Colleen Rogers isn't looking forward to crossing the street to shop for even a few groceries. The store, a locally owned market, is convenient, just steps away from the beauty shop where she works on Livernois in Detroit. But what troubles her is its higher prices, lack of variety and the low quality of fruit, vegetables, meats and other food -- staples Rogers could find every day in abundance at the Farmer Jack store near her home that is about to close.
"Sure, there's other grocery stores, but try finding something to eat in there," said the 34-year-old skin care specialist. "You can't buy quality food in the city anymore."
The lack of major grocery stores has long been a quality-of-life problem in Detroit and one reason some families don't want to live in the city. Now, however, the situation is getting worse as the last two Farmer Jack stores in the city prepare to close by Saturday.
If no grocery stores buy the Farmer Jack locations from the Great Atlantic & Pacific Tea Co., Detroit will be left without a single national chain supermarket, much less a Wal-Mart or Meijer superstore or a Costco-style warehouse store.
Analysts say no other major city in America is such a supermarket desert. And it's not likely to change anytime soon. ...
Detroit News