# Detroit's last major supermarkets to close



## tablemtn (May 2, 2006)

Detroit - the only major city in the entire US with zero major chain supermarkets



> 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.


Too bad. So many of Detroit's neighborhoods look increasingly like this:


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## zachus22 (Dec 4, 2006)

Well, look at the situation from a business perspective. If I'm the CEO of a big grocery chain, I simply DON'T want to be in Detroit. Simple as that. My top priority isn't to feed the people, it's to make money; that's simply not going to happen the way I would like it to in a dying city like Detroit.


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## mhays (Sep 12, 2002)

Absolutely astonishing. 

Unless there at least some local low-priced chains that sell the full range of food. Are there?


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## tablemtn (May 2, 2006)

Well, yeah. I can't blame the companies. They have to make a business decision, and Detroit just isn't very good business right now.


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## krull (Oct 8, 2005)

Well that is so sad. Another reason why people keep leaving Detroit. Here is the whole story...










*An employee gathers carts outside a Farmer Jack store, where remaining merchandise 
is discounted up to 90 percent.*


*National chains stay away from Detroit*


Here are some reasons cited by national retail experts on why brand supermarket chains avoid Detroit: 

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_



*Grocery closings hit Detroit hard*
*City shoppers' choices dwindle as last big chain leaves*










*Shopper Gordon Alexander, 52, of Detroit says that with the closure of Farmer Jack 
stores like this one on East Jefferson, "People who live here can't even find something 
decent to eat. Where's the justice in that?"*


Joel J. Smith and Nathan Hurst
Thursday, July 05, 2007

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.

Recent efforts by city officials, developers and community activists to woo a supermarket have been unsuccessful. Major grocery chains, which generally operate with thin profit margins, say doing business in Detroit is no-win situation. High employee turnover, cost of security and loss from theft are often cited. The city's comparably low income rates preclude selling an abundance of high-profit, upscale items.

The situation has left regular shoppers at the Farmer Jack stores -- one on East Jefferson and the other on Livernois at Seven Mile -- with two choices: drive the suburbs to shop if they have transportation, or buy groceries at smaller stores near their homes.

"Why should we have to go elsewhere to find a trustworthy store?" asked Joe Lanier, a longtime shopper of the Livernois Farmer Jack who owns a nearby business. "It's ridiculous you can't buy all the groceries you need in Detroit."


*High cost of doing business*


Within its 139 square miles, Detroit has 155 grocery stores, defined as various-size food markets with meat and produce. The city also has 1,000 convenience stores -- including gas stations and party stores -- that sell some type of food.

A 2003 University of Michigan study of Detroit supermarkets showed there were only five grocery stores in Detroit with over 20,000 square feet. The report concluded that the city could support 41 supermarkets with at least 40,000 square feet of space based on its population and spending habits.

Over the years, national chains have located in Detroit, only to pull up stakes and flee. There are a multitude of reasons, according to retail analysts, with the major deterrent being the high cost of doing business in the city.

"Sometimes even the people that live in the neighborhood don't feel safe shopping in the store," said David J. Livingston, a supermarket expert from Wisconsin. "They'll drive right past that Detroit store to go to a suburban store where they feel more comfortable."

While crime is a concern, Matt Allen, press secretary for Detroit Mayor Kwame Kilpatrick, said the issue should not be used as an excuse by the big chains to avoid Detroit.

"In certain areas where the socioeconomic is probably at the lowest end of our society, there are a lot of desperate people," Allen said.

But, he added, businesses can take measures to prevent theft.

"(Businesses) have added lighting, changed the heights of the counters, put the registers in certain places -- security by environmental design. It all helps," he said.

Detroit also suffers from a lack of strip malls with tenants to serve everyday needs. Large supermarket chains don't like to open stand-alone stores, said Ken Dalto, a retail expert from Farmington Hills.


"Larger supermarkets have a better chance of surviving if they are located in strip malls where people can do one-stop shopping," Dalto said. "If you don't have these anchor spots at strip malls, you aren't going to get the large chain supermarkets."

A number of the city's major developers and economic growth officials said efforts to draw a national grocer to the city have met tepid responses.

Midtown Development President Robert Slattery said he showed a plan for a 12,000-square-foot store with 65 parking spaces to specialty grocer Trader Joe's, but the company didn't bite.

His company and Wayne State University are still working to lure a new market to Midtown.


*Expired food is a problem*


Most independent food stores in Detroit are owned and operated by Chaldeans, some of whom have been in business for 40 or more years. A few are owned by African-Americans.

Martin Manna, executive director of the Chaldean American Chamber of Commerce in Southfield, said Chaldeans have stepped in as A&P, Farmer Jack and Kroger have abandoned the city.

"There usually is a market within walking distance of nearly every area of Detroit," Manna said. "It might not be a supermarket. That might be why there are so many people eating potato chips rather than wholesome foods in Detroit."

Although shoppers may complain prices are higher at independent stores, independent grocers said they strive to be competitive, even with the high costs of running a store in the city.

While there are clean, well-run stores scattered throughout the city, many don't offer the variety and selection of a Farmer Jack.

Many residents rely on convenience stores for bread, milk, eggs and snacks. Small stores that do offer meat and produce often sell food past its expiration date, shoppers said. The city has raided stores over the years to crack down on sales of expired food, but many say the problem still persists.

Pat Hollins, an activist with the Association of Community Organizations for Reform Now, told of stopping in a small neighborhood grocer several weeks ago and immediately finding two expired packages of breakfast sausage.

ACORN has been picketing stores it contends have been selling expired meats and unhealthy foods.

"We have problems with meat and produce being expired," Hollins said. "We have no security in the parking lots, no restrooms in the stores and a poor selection of food products. When you cross Eight Mile, these problems all disappear. The poor folks, who don't have transportation to the suburbs to shop, are being taken advantage of."


*'Where's the justice in that?'*


Without chain grocers in her neighborhood, shoppers like Cheryl Coleman, who lives just blocks from the Farmer Jack on East Jefferson, will have to travel much farther for low-priced sundries.

"I'm sure going to miss this store," Coleman said. "I got everything I need here, just everything. We need a good grocery store in the city, right here on Jefferson."

She said she'll probably end up shopping at a Kroger in Grosse Pointe. "It's either Kroger or the little local store," Coleman said. "And they don't always have everything I want."

Gordon Alexander, 52, who lives on the city's east side, said suburbanites have it good compared to Detroiters.

"There is only one store in the city I'll pick up some stuff at, but my kids jokingly call it the 'ghetto store' because everything is subpar," he said. 

"Some of these stores make the argument that they are catering to black clientele, so they have to make room to carry stuff like ham hocks and chitterlings, but that's just an excuse for bad quality.

"Here we are, trying to revitalize the waterfront and make this city whole again, but people who live here can't even find something decent to eat. Where's the justice in that?"










*John Reffigee of Detroit loads groceries into his car after shopping at the Parkway Foods 
grocery store on Detroit's east side on Tuesday. Detroit has 155 food markets of various 
size, but few big stores.*


© Copyright 2007 The Detroit News


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## Xusein (Sep 27, 2005)

Only 5 supermarkets with over 20,000 square feet in a city of around 900,000? That's not horrible, that disturbing to a major degree...a city that large shouldn't have to rely only on meager corner store.

And I thought Hartford's supermarket issue was bad. The two cities are on opposite sides of a coin right now...


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## DarkLite (Dec 31, 2004)

*not even developING countries with cities that large have that problemhno:*


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## hudkina (Oct 28, 2003)

Those stores aren't closing. A&P, operator of the Farmer Jack stores in the region are pulling out. Many of the stores are being purchased by other companies including the two in Detroit. The two in Detroit are going to convert into Mike's Fresh Market.

Also, there are lots of local grocery stores in the city.


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## Taller Better (Aug 27, 2005)

I'm absolutely shocked... and didn't we recently have a thread somewhere on SSC about Detroit struggling to keep up with demand for new service industry
outlets like supermarkets? This thread has stunned me..


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## gladisimo (Dec 11, 2006)

^^ I hope this isn't representative of the direction Detroit's headed


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## FM 2258 (Jan 24, 2004)

tablemtn said:


> Detroit - the only major city in the entire US with zero major chain supermarkets
> 
> 
> 
> Too bad. So many of Detroit's neighborhoods look increasingly like this:


Wow, that looks pretty bad.


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## wjfox (Nov 1, 2002)

Detroit is a dying city.


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## Mekky II (Oct 29, 2003)

Americans seem to have problems with french cities (New orleans, Detroit)... I hope nothing bad will happen to Chicago :lol:


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## LEP (Dec 8, 2003)

Need to pull down or fix up all the derelict buildings, Build highrise appartments where there is vacant land. Build it and they will come. Have more police too


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## Jim856796 (Jun 1, 2006)

...and supermarket closures are just another reason Detroit is a crap city.


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## goschio (Dec 2, 2002)

Detroit would be a good place to open some Aldis and Lidls.


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## Paddington (Mar 30, 2006)

Looks like the black nationalist leadership of Detroit got exactly what they wanted. They promised to make "******" leave the city, and they did, along with the business class. They promised to kick the evil capitalists out of the city, and they did, with only General Motors remaining of the Big 3.


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## Paddington (Mar 30, 2006)

TenRot said:


> Only 5 supermarkets with over 20,000 square feet in a city of around 900,000? That's not horrible, that disturbing to a major degree...a city that large shouldn't have to rely only on meager corner store.
> 
> And I thought Hartford's supermarket issue was bad. The two cities are on opposite sides of a coin right now...


They used to say that Detroit was the only city in America with over a million people that did not have a big box store or proper shopping mall. 

They don't say that any more... because Detroit's population is way less than a million now.

Detroit used to have close to 2 million people at its peak in the mid-20th century.


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## mgk920 (Apr 21, 2007)

wjfox2002 said:


> Detroit is a dying city.


...While its suburbs continue to *BOOM* (although the State of Michigan's overall business climate and attitude has put a bit of a damper on that, too).

hno: 

Mike


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## hudkina (Oct 28, 2003)

Detriot has several big box stores including a Home Depot that opened recently. Also, a developer is building a new Mall in the city that will be anchored by a J.C. Penny and will have lots of new shops.

And Detroit already has several Aldi and several other decently sized markets.

Not only that but Detroit has Eastern Market the largest farmer's market in the U.S.:


















This article is referring to two Farmer Jack stores that are closing because A&P decided to pull out of the region. The two stores that are closing in the city are reopening as new independent stores.


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## hudkina (Oct 28, 2003)

Detroit's first malls were built just outside the city limits where large tracts of land were still available in the 1950's (remember, most of Detroit was already developed by the 50's). Here is a map of where all of the malls are located. As you can see three malls are built directly outside the city limits.










In total there are 14 enclosed malls in the area that I described earlier. That's about 1 mall for every 265,000 people. If you include the Ren Cen Shops, thats 1 mall for every 250,000 people.

You could say that Renaissance Center Shops are the closest thing to an enclosed mall in the city. (There are more than a few large retail strips in the city.) They were built by General Motors when they bought and renovated the Renaissance Center several years ago. There is no large anchor, but it does have shops such as Borders Express, Jos A Banks, Brooks Brothers, Godiva, Pearlvision, Pure Detroit (a local brand), etc. There is also a 4-screen movie theatre, and a large food court with all sorts of restaurants.









Image © 2007 hellek23d

Also, a new mall is likely to be built on the Detroit side of 8 Mile near Woodward Ave. J.C. Penny has already commited to being the anchor and several other major retailers will be announced the closer the project is to construction. Though it may turn out to be a "lifestyle" center instead of an enclosed mall.

I didn't include any lifestyle centers or large strip malls. I only included enclosed malls.


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## tablemtn (May 2, 2006)

I should note that 'big-box' retail is POSSIBLE in Detroit - Home Depot does it. But most major retailers don't want to take the potential risks.


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## spongeg (May 1, 2006)

hudkina said:


> In 2000, the "core" of the Detroit Metro Area (which includes nearly 100 different cities, villages, and townships) had 3.7 million people in 1,147 sq. mi. In comparison the Vancouver CMA had a population of 1.9 million people in 1,111 sq. mi. The city of Detroit (950,000 in 139 sq. mi.) accounts for only about 25% of the total population and about 12% of the total land area.
> 
> Detroit's greater sphere of influence covers an area with about 5.5 million people. But that includes cities like Ann Arbor, Flint, Monroe, Port Huron, etc. which shouldn't be considered "Detroit." The most accurate description of Detroit (besides what I listed above) is the Tri-County area (Wayne, Oakland, Macomb) which has 4.1 million people.
> 
> Here's a picture. The green portion is the area that contains the 3.7 million people, the added yellow part expands the population to 4.1 million. Some of the More well-known cities are listed.


thanks for the info

i get detroit TV so its kinda confusing cause (mainly online) I keep hearing how dire Detroit is, yet watching the news or specials it seems like a vibrant place with lots to offer and not as bad as have been led to believe


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## hudkina (Oct 28, 2003)

Detroit is often towards the bottom of the heap in regards to many quality of life "rankings", but the reality is that in the United States there really isn't that much of a difference between the "best" cities and the "worst" cities, especially when you compare metropolitan areas. Detroit's extremely wealthy suburbs offset the generally poor city to give metro Detroit a middle-of-the-road ranking in many quality of life statistics.

And sometimes cities that compare to Detroit as far as certain quality of life issues are concerned (i.e. Miami, New Orleans, Atlanta, Washington, etc.) seem to have "upsides" in the national media, but Detroit's "upsides" are generally ignored.


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## KevD (Jan 14, 2007)

I had no idea about no super markets in detroit... that's insane!


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## numba1 (May 1, 2007)

As has been stated before, there are grocery stores in the city proper, just not any of the big box retailers. There are PLENTY of big box retail stores in the suburbs of Detroit with some on the borders of Detroit. Many Detroiters visit these big box stores often.


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