Whole Foods CEO, On Opening Detroit Store: 'We're Going After Elitism, Racism'

[poobert]

So I think I've got it:

To be truly right and just, Whole Foods must open a store without any sort of subsidy - unlike countless other projects in city, suburb, or rural areas - in a completely marginal, crime ridden area. We even have an area picked out by one of our helpers, John R and 7 Mile. Oh, by the way, they're not really adding jobs because they're a grocery store[[?!). And Canadians don't shop here.

Then the suburban mafia can then REALLY scream about how it is destined to fail - which they're already doing already, anyway. We've even picked a time - next year, right?

You guys set some odd benchmarks here.

I probably won't shop there, and am not a "Detroit optimist" by any means, but I have enough reason to believe they've done their homework and will be successful. You guys just need to lay off the piss-laden Wheaties.

[bailey]

So I think I've got it:
To be truly right and just, Whole Foods must open a store without any sort of subsidy - unlike countless other projects in city, suburb, or rural areas - in a completely marginal, crime ridden area. We even have an area picked out by one of our helpers, John R and 7 Mile. Oh, by the way, they're not really adding jobs because they're a grocery store[[?!). And Canadians don't shop here.

You guys set some odd benchmarks here.

You've got some odd reading comprehension skills. The issue that touched off the criticism was the WF CEO martyring around like he was the vanguard of a movement and the first to get grocery stores into Detroit. WF is not..he's 86th. He claimed to be addressing "elitism", "racism" and "a food desert". Then located the store in an area [[and someone can correct me) with a higher concentration of professionals and lower concentration of under served minorities than any other in the city. He claimed this is a bold risk for some greater good, yet can only do it if he gets 4.5 million in assistance from a bankrupt city and bare bones State.

As to the latter, as far as other stores, are you sure they are not getting incentives? YOBS got financial assistance from MEDC and DEGC, the organizations that provided the incentives to WF. I keep seeing people say that YOBS was left on their own but that's not accurate.

YOBS got some assistance in the form of grants and loans, it did not get 4.5 million. Further YOBS is not a outpost of a multi billion dollar multinational company. Finally, YOBS rehabbed and reused a building that already housed a grocery. WF demanded a new build. If WF got what YOBS got, perhaps there'd be less head scratching.

I don't get the criticism on the size of the store either [[the "half-sized" comments). I suppose if you do your grocery shopping in warehouses, then 25,000 square feet might seem tiny. But this store is clearly not meant to be the out-scaled "regional attraction" to which so many people in Michigan are accustomed. Is there something wrong with a store that serves its neighborhood [[and purchases from local farmers and purveyors)? Tax subsidies or not, this is a step in the right direction scale-wise for Detroit.

WF average store size is 35000 square feet. I think Austin still has the record at 80,000. It's not that it's "tiny" as compared to Wal Mart, it's small for a WF. Detroit's 20k is half the size of either of the two in the burbs [[less than half the size of AA's..unless that is suburban detroit) and one of the smallest they have. speaks to the level of commitment to solving that food desert issue when they build the smallest store in the region where apparently there is the most need for more store.

And as it is such a relatively small store... why the demand for a new build? Are you telling me there are no suitable buildings of similar size in under served areas that could have been used? I can think of three former Farmer Jacks turned Kroger's standing empty right now. But.. again, they're in areas that actually NEED a grocery store and not in hipster central.

[TexasT]

YOBS got some assistance in the form of grants and loans, it did not get 4.5 million. Further YOBS is not a outpost of a multi billion dollar multinational company. If WF got what YOBS got, perhaps there'd be less head scratching.

How much did YOBS get? And how much did it get relative to how much it paid to develop its store?

WF did not get 4.5M from Detroit FYI. 1.5M or so came from local/community funds [[not even sure how much of that was actually CoD) and the rest was state and federal, per Crains. Do you know whether YOBS and other urban grocers have received state or federal money? Because people were pretty adamant that YOBS received no help and that was wrong...

WF average store size is 35000 square feet. I think Austin still has the record at 80,000. Detroit's 20k is half the size of either of the two in the burbs. speaks to the level of commitment to solving that food desert issue when they build the smallest store in the region where apparently there is the most need for more store.

Most urban stores are much smaller than their suburban counterparts. In Chicago, we had "City Target" and "Walmart Express" - much smaller to appropriately meet the demands of its urban location and clientele. I've already said I'm more likely to continue shopping at YOBS over WF because it's smaller and more convenient. Austin's WF, yes is the flag ship but Austin is not very dense or urban [[which is why I struck it off the list of cities to consider after leaving Chicago). I would NOT want an 80K sf WF in Midtown.

Also, lots of WF have multiple bars and even restaurants in them. Perhaps this one cut that out and still offer the same square footage of actual grocery aisles. We'll see when it opens, no?

I'm still going to shop at YOBS but I certainly will try WF out and wish them best of luck.

[Bham1982]

Most urban stores are much smaller than their suburban counterparts.

I don't think this is generally true. Most WF are larger in cities than in suburbs, I think. New construction grocery stores are generally the same size, or larger, in urban areas, probably because land acquisition costs are generally higher and demand is generally stronger.

In NYC, the WF are usually in the 50,000-70,000 square foot range. In the suburbs around NYC, the WF are usually in the 30,000-40,000 square foot range.

One thing locally here in MI is that the WF don't seem to be that great. In most markets, WF are among the top grocers. Here places like Papa Joes tend to be better. The WF in Troy is really so-so, the WB one is bigger and newer, but not that great; the RH and AA ones are probably the best in MI.

[bailey]

How much did YOBS get? And how much did it get relative to how much it paid to develop its store?

IDK, I'm sure someone can answer that, but it doesn't address the other questions there. A) Why does a multi billion multi national company require subsidy to open a half sized version of its store? Especially if it's doing it for such laudable, altruistic, non business reasons? b) why didn't WF rehab a vacant building in a city littered with them...especially in areas just screaming for decent grocery stores?

I'm still going to shop at YOBS but I certainly will try WF out and wish them best of luck.

I hope people do. Hopefully they will both stay open.

[Bham1982]

So I think I've got it:
To be truly right and just, Whole Foods must open a store without any sort of subsidy - unlike countless other projects in city, suburb, or rural areas -

We're talking a mini-grocery store. Are you aware of even one mini-grocery anywhere else in the region that received even a penny in subsidies?

And the point isn't the subsidies. It's the ridiculous pronouncements of their "fight against racism and elitism" one heirloom tomato at a time.

We all know that if this thing survives, it will be because of Wayne State/DMC medical staff stopping on their way back to their comfortable suburban homes.