We see a lot of stories about markets closing and often forget about the customers left behind when their local store closes. The author of this article lost her favorite store in Chicago and discusses what happened in the area but the end result is there’s an empty building where she used to shop. Interesting that she talks about the pending arrival of The Fresh Market, since we’ve seen how they did in my area and they are in fact leaving California totally, hopefully they don’t have a 6-month visit in her neighborhood and then leave an empty building again.
H-E-B, Publix, Traders Joe’s — these retailers get a lot of attention for being good retailers, the best in class. But this is not a story about great retailers.
This is about a failed supermarket and the hole it leaves behind.
In Chicago, where I was raised and still live, there were always two dominant grocers: Jewel and Dominick’s. Jewel was more aligned with everyday, working class neighborhoods and Dominick’s had a slightly more upscale feel. It was perceived as more expensive.
Later as consolidation took hold in the supermarket industry, Jewel (Jewel-Osco today) was acquired. First by American Stores, then Albertsons and finally Supervalu. Dominick’s became part of Yucaipa Cos. and ultimately Safeway. But the stores retained their market position and continued to operate under the original regional banners.
Chicagoans had little idea their neighborhood stores were owned by large corporations headquartered elsewhere. Nor did they need to.
Loyalties between the two chains were long divided and old perceptions firmly entrenched, so by the time Safeway began making meaningful changes to the pricing structure with personalized deals via a loyalty program, opening new stores with a fresh market focus and implementing competitive pricing, it was too late. Industry insiders talk about how Safeway mucked this up, but the end result was the end of Dominick’s.
Safeway announced in October 2013 it would close all Dominick’s stores by Dec. 28, 2013, exit the Chicago market and sell its Canadian operations. Nothing personal, Chicago, Safeway had problems that go beyond these two business units and management’s attention was needed elsewhere.
But it left Chicago with just one dominant grocery chain: Jewel-Osco.
In my Northside Chicago community, the news of Dominick’s closing was devastating. Gone was a three-year-old store, one that filled a hole between two Jewel locations and a much needed alternative to those tired stores. Because in its market dominance, Jewel-Osco has become complacent. Stores aren’t updated and many are dark and shabby, poorly stocked and staffed by associates who seem overworked or under inspired.
There are no alternatives. The closest Whole Foods is several miles away, has no free parking and is frankly too pricey for weekly shopping. The same is true of Trader Joe’s.
Roundy’s Mariano’s Fresh Market is expanding fast in Chicago — one will even take over the now-shuttered Dominick’s store nearby. But these stores aren’t open yet and I’m facing an empty pantry and a much more difficult time navigating a busy schedule. It’s no longer possible to make quick trips to the store and I’ve been loathe to learn a new store layout and try new store brands, only to have to do it all over again.
So while fellow Forbes contributor Roger Dooley extolls the virtues of his beloved H-E-B in “The Smartest Supermarket You’ve Never Heard Of” and the lucky folks in the Southeast get to shop at Publix The Walmart Slayer, I miss my neighborhood market.
There is the business side of this story and there is the emotional and practical side, the community’s side. This is what it looks and feels like when your neighborhood grocery store closes.