Meijer might come to Detroit

[sg9018]

Meijer might open a store at the Shops at Gateway[[Woodward and Eight Mile).The Detroit News has the story,

Saturday, June 27, 2009
Meijer in talks to open Detroit store

Jaclyn Trop / The Detroit News

Meijer is in negotiations to open its first store in Detroit, at Woodward and Eight Mile next to the Michigan State Fairgrounds, to anchor the long-awaited Shoppes at Gateway Park development.
An attorney for Meijer, Stephen Palms of Miller, Canfield, Paddock and Stone, P.L.C. in Ann Arbor, confirmed in a letter to the city of Detroit General Retirement System that the company is in discussions to locate a store at the $80 million open-air mall. The retirement system is financing the project.
The opening of a Meijer would mark the return of a major grocer to the city -- Farmer Jack was the last big chain in Detroit, closing in 2007. City residents have long complained about the lack of grocers and shopping options; Detroit has no supercenters such as Wal-Mart or Target.
In the letter, Meijer said the negotiations are incomplete and "a number of issues" remain open. But "based on the progress that has been made, Meijer remains optimistic that an agreement regarding the acquisition and development of this site will be reached."
Company spokesman Frank Guglielmi confirmed Friday that Grand Rapids-based Meijer is in the "early stages of due diligence" for the project.
"We're always exploring and investigating development opportunities across the Midwest," he said.
The 35-acre mall, which will offer "medium to upscale discount" shopping, will be Detroit's largest commercial real estate development in 50 years, according to Bernie Schrott, one of five partners in Gateway Park LLC.
The consortium also includes longtime Metro Detroiters Ricardo Solomon, former Wayne County commissioner; ex-Ford Motor Co. executive Elliott Hall; Greektown casino minority partner Marvin Beatty; and theater magnate Joe Nederlander.
The center also will include close to 40 smaller shops, each between 5,000 and 10,000 square feet, and casual family dining restaurants, Schrott said. The mall is expected to open in 2011.
Two other general merchandise discounters, Marshalls and HomeGoods, have signed on to share the 40,000 square feet designed for the mall's secondary anchor, Schrott said. The companies are owned by Framingham, Mass.-based discount retailer TJX Companies Inc., which also is parent to three other apparel discounters: T.J. Maxx, A.J. Wright, and The Maxx.
Meijer's space would measure close to 200,000 square feet. Together, the two anchors comprise more than 60 percent of the mall's 380,000 square feet in retail space.
Meijer, which operates 189 stores in Ohio, Indiana, Illinois, Kentucky and throughout Michigan, is celebrating its 75th anniversary Tuesday.
The store would do "extremely well" at the proposed site because there are no other major general merchandise retailers or grocers nearby, said Paul Bensman, associate broker and principal at Locations Real Estate and Investments in Southfield.
"Any retail in the city is a good thing. It's a supply and demand issue," he said.
Bulldozers began working at the site Friday morning, and a construction trailer is expected to arrive there next week.
A tax incentive granted two years ago, when Gov. Jennifer Granholm signed a bill that created a corridor improvement authority at Eight Mile and Woodward, requires that the project break ground before July 15.
The project has been derailed several times since it was announced three years ago due to the economy and other setbacks. Chicago-based General Growth Properties, the second-largest shopping mall owner in the United States, signed on to develop the project in 2006 but withdrew last year. The company filed for Chapter 11 bankruptcy protection in April.
JCPenney signed a nonbinding letter of intent to anchor the center in 2007 but that fell through last year when the national retailing landscape began to suffer from a credit crunch and dwindling shopper dollars.
Retail analysts said the project benefits from its location off a major thoroughfare and availability of parking.
The project's investors believe consumer dollars are there: Median household income is more than $100,000 for the surrounding area that includes the Detroit neighborhoods of Sherwood Forest and Palmer Woods, as well as from the suburbs of Hazel Park and Ferndale and other areas of southern Oakland County, Schrott said.
Critics have argued that the neighborhoods adjacent to the site couldn't support a mall of Gateway's size. The site, which sits on the border of Detroit and southern Oakland County, would not likely attract shoppers from the north, Bensman said.
"Eight Mile is like a river. People won't cross it to go shopping," he said.
Another major obstacle to the project is that most retailers can't afford rents for new construction.
"Construction costs now are more than tenants are willing to pay," he said.

http://www.detnews.com/article/20090...t-store/?imw=Y

[Mackinaw]

More good news. 8 Mile is the most appropriate spot for big boxes in the city, and this will be accessible by ample buses and eventually Woodward Light Rail. Fingers crossed...

[mwilbert]

It will be interesting to see if this happens, but the thing I noticed was the quote:

Eight Mile is like a river. People won't cross it to go shopping

First, people cross rivers to go shopping all the time, so this is not exactly a useful simile. Second, people cross it all time going north. Third, as far as southbound traffic goes, how could they possibly know, since there isn't much reason to do it currently.

I'd be pretty surprised if nobody from Ferndale went to a Meijer's by the Fairgrounds. On the other hand, there is already the Meijer's on Coolidge, so I wouldn't expect a lot of people going there from anyplace much north of 696.

[Patrick]

Will a high theft rate drive it away like the Target on 8 Mile?

[Gannon]

That one on Coolidge is one of their oldest and skankiest stores...this is surely welcome news.

I'm still partial to the one on Fort down in Lincoln Park...they seem to always have my orange juice on sale 2-for-$5 AND organic lemons and bananas in stock all the time. Then I can jet to Calder's for my dairy on the way home...as long as I have a vehicle available.

For those other times when it is just locomotion and bus...this could work well, as long as they aren't a half mile in from the intersection!

Cheers!

[313WX]

That one on Coolidge is one of their oldest and skankiest stores...this is surely welcome news.

I'm still partial to the one on Fort down in Lincoln Park...they seem to always have my orange juice on sale 2-for-$5 AND organic lemons and bananas in stock all the time. Then I can jet to Calder's for my dairy on the way home...as long as I have a vehicle available.

For those other times when it is just locomotion and bus...this could work well, as long as they aren't a half mile in from the intersection!

Cheers!

I almost certain DDOT and SMART will have shuttles that take you directly to and from the shopping center.

If anything, this will probably be where Woodward's DDOT route ends [[like the Gratiot route and Eastland).

[Crumbled_pavement]

When is this phantom mall supposed to be built?

[raptor56]

So you put a Meijer at 8 and Woodard so you can say you are catering to the City of Detroit, but really, you're banking on all the Ferndale, Pleasant Ridge, Royal Oak, Hazel Park folks and their money.

[Crumbled_pavement]

So you put a Meijer at 8 and Woodard so you can say you are catering to the City of Detroit, but really, you're banking on all the Ferndale, Pleasant Ridge, Royal Oak, Hazel Park folks and their money.

Why can't the store cater to all these communities? Why is it that Detroit is the only community in the metro area that must be completely self sustaining. You think the only people that shop at the Meijer at 14 Mile/Coolidge are from Royal Oak?

[pffft]

Why can't the store cater to all these communities? Why is it that Detroit is the only community in the metro area that must be completely self sustaining. You think the only people that shop at the Meijer at 14 Mile/Coolidge are from Royal Oak?

Exactly!
This is good news...

[mjs]

Will a high theft rate drive it away like the Target on 8 Mile?

It doesn't have to. Detroit's other Meijer's at I-96 and Middle Belt has at least two units in the area at all times for rapid response and to allow for multiple law enforcement witnesses at the trial. Once to court, they also don't mess around. Its either high fines or for the unemployed that can't afford fines, a great many hours holding a garbage bag. I think the new Mayor can understand the importance of matching this standard.

[Cooper]

So you put a Meijer at 8 and Woodard so you can say you are catering to the City of Detroit, but really, you're banking on all the Ferndale, Pleasant Ridge, Royal Oak, Hazel Park folks and their money.

Ever heard of Palmer Woods and Sherwood Forest? There's money in Detroit, too. The location is also a natural hub for both DDOT and SMART, and one day there might be a light rail line going by, so there's easy access by mass transit too. And as crumbled said, there's nothing wrong with serving multiple communities. This is a project that would have tremendous benefits and almost no downsides. I just hope it gets built. It's been delayed for three years and counting, but it sounds like it might finally happen.

[pffft]

The neighborhoods just South of 8 -- Sherwood Forest, Green Acres, Palmer Woods, have long been underserved by retail. A lot go up to Holiday Market in RO ...this will be great for those folks...

[Pcm]

More good news. 8 Mile is the most appropriate spot for big boxes in the city, and this will be accessible by ample buses and eventually Woodward Light Rail. Fingers crossed...

I agree that 8 Mile is the best spot for big box stores.

As much as I hate seeing giant sprawling Wal-Marts, Costco's, and Targets, if they have to be built, build them on 8 Mile. I'd probably throw up if one was built in Corktown or Midtown or where ever everyone wants to see these independent retail killers.

Even though a Meijer will surely bury any hardware stores, workwear stores, or any other specialized retail offerings in proximity to 8 Mile and Woodward.

[mjs]

Turning the old Tiger Stadium into a Costco or MCD into a Walmart and Meijer's. That would have been a sight to see.

[Patrick]

Why can't the store cater to all these communities?

A LOT of people in the suburbs will simply not step foot south of 8 Mile Road. For every person that will shop at this location from the burbs, another 3or 4 will not.

[pffft]

What hardware/workwear are on 8 near those neighborhoods? All I see are gas stations, topless bars, fry your own fish places, etc.

[Pcm]

What hardware/workwear are on 8 near those neighborhoods? All I see are gas stations, topless bars, fry your own fish places, etc.

Well, fine. I gave bad examples. But you get the point.

It's hardly open to debate that big box stores take business away from independent, mom and pop retailers that [[in most cases) provide better services.

It's nearly impossible to find an employee at Meijer when you need help. Go to Harbortown Market, Honeybee, Indian Village Market, or any other and you'll find someone in the next isle willing to help.

[2blocksaway]

It's hardly open to debate that big box stores take business away from independent, mom and pop retailers that [[in most cases) provide better services.

I'll debate that!

Last time I checked people had choices.

If a Wal-Mart, Best Buy, or Home Depot decides to expand in your small town or neighborhood all of the residents of the city or town it is in and everyone from miles around can still make a choice not to shop there and support locally owned and operated businesses.

I hate it when everyone bitches about how Wal-Mart killed all of the mom and pop businesses in so-and-so small town.

You and all of your neighbors killed it because you chose to shop there!!!!!

Mom and pops my provide better more knowledgeable service but lower prices will always win.

[Quonset Hut]

Well, fine. I gave bad examples. But you get the point.

It's hardly open to debate that big box stores take business away from independent, mom and pop retailers that [[in most cases) provide better services.

It's nearly impossible to find an employee at Meijer when you need help. Go to Harbortown Market, Honeybee, Indian Village Market, or any other and you'll find someone in the next isle willing to help.

It depends on the quality of the staff for the big stores. A few months back it was discussed here how it was no problem getting staff to help you in Meijer stores in Ann Arbor, Highland, etc. When you get staff who are infused with the non-caring Detroit Business Attitude in Livonia [[the current Meijer for "Detroit"), they will be somewhere talking with their co-workers instead of walking the floor. Also, consumers accept higher prices all the time for convenience, selection, current fashion trends, and service.

There are certain reflexive stock phrases and ideas here about how big box is bad for society, Oakland County sprawl backed by govt $$ killed the city, and whatever else is popular in the free socialist leaning weeklies you get at the beer store. Here we have a big development in Detroit, finally, to pay local taxes. While there is three times this much retail just on and behind Haggerty between 14 Mile and 16 [[but not a decent road), it is still a big deal for Detroit. So why bitch about it??

[Crumbled_pavement]

A LOT of people in the suburbs will simply not step foot south of 8 Mile Road. For every person that will shop at this location from the burbs, another 3or 4 will not.

Okay, so? The point I was responding to was that Detroit businesses should not court surburban shoppers. If only 20% of suburbanites would shop at a Meijer on 8 Mile why should Meijer and Detroiters turn them away? I just don't get that logic at all.

It's funny that if a Detroiter says we don't need the suburbs then we're too ignorant and stupid to accept help when we need it. If we say we welcome suburbanites to support our businesses then we're too poor and stupid to support our own businesses. Can't win for losing in this region . . .

[Patrick]

It doesn't have to. Detroit's other Meijer's at I-96 and Middle Belt has at least two units in the area at all times for rapid response and to allow for multiple law enforcement witnesses at the trial. Once to court, they also don't mess around. Its either high fines or for the unemployed that can't afford fines, a great many hours holding a garbage bag.

You do realise that the Target at Eastland Mall is in the top 5 highest for theft rates in the country right? How do I know? Buddy works in the Twin Cities at Corporate HQ. They have debated about closing this store many times...EVEN after renovating it.

[MrCrush1914]

We cares what suburbanites won't go to the store. There are some who will. There are Detroiters who don't shop in Detroit at all but go to the burbs and there are those who live in the burbs and do what shopping they can in the city.

The point of the Meijer opening is to provide an option for people- it's not to cater to Detroit or the burbs. There is a void and it needs to be filled and if you like it good.. if you don't do go.

To all the big box haters- When was the last time a mom and pop opened up and other mom and pops followed? Chains open up based on research etc and when one opens usually other chains be it big or small open up as well.

"Patrick Will a high theft rate drive it away like the Target on 8 Mile?"

^ I don't think theft alone pushed the Bellaire Target away- I am sure the face that it wasn't easily visible from the street had something to do with it as well.

"If a Wal-Mart, Best Buy, or Home Depot decides to expand in your small town or neighborhood all of the residents of the city or town it is in and everyone from miles around can still make a choice not to shop there and support locally owned and operated businesses."

^^^I couldn't agree more

"It's nearly impossible to find an employee at Meijer when you need help. Go to Harbortown Market, Honeybee, Indian Village Market, or any other and you'll find someone in the next isle willing to help."

^^ I will remember this when I want some clothes, toys, a bike, electronics, etc... because these stores provide them.

[rjk]

We cares what suburbanites won't go to the store. There are some who will. There are Detroiters who don't shop in Detroit at all but go to the burbs and there are those who live in the burbs and do what shopping they can in the city.

Which makes me wonder why Meijer would set up shop in Detroit when so many Detroiters are making trips out to Meijer stores in Madison Heights and other inner ring suburbs.
By the number of stores in the suburbs compared to the city it clearly indicates that more Detroiters are shopping out of the city than the other way around.

I'd love to see more stores open in Detroit or anywhere for that matter.
However I'll believe when I see it. Right now it's very difficult for me to blieve this is going to happen.

[MrCrush1914]

By the number of stores in the suburbs compared to the city it clearly indicates that more Detroiters are shopping out of the city than the other way around.

It's really not that complicated to understand...of course more Detroiters shop in the burbs than the other way around... WE DON'T HAVE ANYWHERE TO SHOP! Why would burb folk come into the city to shop when there aren't any options equal to what they have in their neighborhoods.