Local retailers divided on market impact of Whole Foods

**begingri** · April-12-11, 12:09 AM

News that Austin, Texas-based Whole Foods Market Inc. may be considering a store in Detroit's Midtown provoked a range of responses from local retailers.

On the one hand, there's opportunity -- Whole Foods has a track record of working with locally owned vendors to place products in its stores.

But some small retailers are worried that the Midtown market isn't yet robust enough to support multiple organic grocers.

Midtown bakery Avalon International Breads, on West Willis and Cass, recently inked a deal that placed some breads and vegan products in Whole Foods' five Michigan stores. Chesterfield Township-based Achatz Handmade Pie Co.'s products are carried in the 40 stores that comprise Whole Foods' Midwest division.

Whole Foods works to bring local food vendors into its stores through its forager program, said Kate Klotz, Whole Foods' Midwest public relations manager, which includes education about the process.

"We're happy to sell their products if they meet our quality standards," Klotz said.

"What can you do, though?" said Paul Willis, one of the owners of Goodwell's Natural Foods Market at West Willis and Cass. The market, open for five years, has annual revenue of about $500,000.

Kim's Produce opened last January, and Smith said he's concerned that the store, which sells locally grown, organic produce and has about $120,000 in annual sales, hasn't had the time to develop a solid customer base.

The mix between local and national retailers is a compromise successful downtowns must negotiate, Mosey said.

"You need both, that's the bottom line," she said. "For continued confidence in the market by other investors, they want to see some of those flagship nationals, but we also want to make sure that we have a very local flavor kind of neighborhood. We want to see small independents as well as national chains."

http://www.crainsdetroit.com/article...of-whole-foods

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**gthomas** · April-12-11, 03:23 PM

I've been trying to explained this method on here for the longest...finally another person perspective. We need a mixture of local and national retail!!! Totally agree..small business cant survive on its on. I believe it will help local businesses...

**casscorridor** · April-12-11, 07:25 PM

Yeah, the Whole Foods could be the straw that breaks the camel's back. The camel being obstacles to development and reaching critical mass. It is likey new retail would follow, both independent and national chains alike, in addition to nee residential developments. It would send a signal to weary developers that Midtown Detroit is OK to invest in. Then, the light rail opens...

**Flintoid** · April-12-11, 07:30 PM

I couldn't agree more. When national corporations are looking for places to locate, they need to see that other national chains can succeed as well. Whole Foods could be that chance for Midtown. I love places like Kim's and Goodwells, but Detroit cannot redevelop based solely on local small businesses, we need national chains as well. Gentrification is not a bad thing if small business is kept in mind as a compliment to national retailers.

**Danny** · April-13-11, 09:29 AM

Who needs Whole Foods! organic foods are very expensive and they spoil faster than preservative foods. Anyone who buys organic food have less then 5 days to eat it up. I trying buy some groceries from Whole Foods in Troy and it was spoiled before I put it my kitchen selves. I say forget Whole Foods, I'm hitting Kroger's.

**old guy** · April-13-11, 09:56 AM

When I'm in an area that has a Whole Foods store I like to pick up a few things that I can't find in other stores. But I buy about 90% of my groceries at my local supermarket. Most of the people I know do the same thing. I've seen Walmart do more damage to local food stores than Whole Foods.
With gas prices jumping so high now, I shop at the grocery store that's closest to my house. Luckily, there's a farmers' market close to my house during the summertime and I buy whatever I can from them. I try to grow the rest.
I guess most of my shopping is dictated by cost/fresh food. Walmart doesn't enter the equation for me though.

**gthomas** · April-13-11, 10:49 AM

No Walmart...too ghetto. More and better development will come from Whole Foods Market than cheap Walmart. I will always shop local, Whole Foods will not take away my priorities. It will give me a option without leaving me limited, will always shop @ eastern market, goodwell, kims produce, avalon..etc. Whole Foods is just a OPTION. And that goes to any other national retail. Watch how well Whole Foods do here in the city, probably most than the other locations in Michigan. The Home Depot on 7mile and Meyers is the most profitable in southeast Michigan. Leaving the suburbs store for the city and has been doing very well without suburbanites.

**Danny** · April-13-11, 10:56 AM

gthomas sez... 'Watch how well Whole Foods do here in the city, probably most than the other locations in Michigan. The Home Depot on 7mile and Meyers is the most profitable in southeast Michigan. Leaving the suburbs store for the city and has been doing very well without suburbanites.'

I watched how Krogers on Gratiot and E. 7 Mile Rd. did well and move away to the suburbs.

I watched how Super K-mart did well on W. 7 Mile Rd. before they went bankrupt and replaced by Home Depot.

'No Walmart...too ghetto. More and better development will come from Whole Foods Market than cheap Walmart. I will always shop local, Whole Foods will not take away my priorities. '

I don't want EVIL Wal-Mart or Whole Foods in Detroit PERIOD! The ghettoes are not ready for those services!

**gthomas** · April-13-11, 09:13 PM

Thats the whole point! As you specify "GHETTO"...all those market that failed where in the "GHETTO". Here, Iam talking in a clean, quiet, safe neighborhood in thriving Midtown. Thats the difference...you attracted what type of customers you want or that are in your neighborhood. Midtown will love Whole Foods and it will be a catalyst for more development along with the M-1 rail. Thats my point, yours not valid...

**gthomas** · April-13-11, 09:19 PM

Danny, Danny, Danny....Why do people consist that Detroit is ghetto as a whole? Detroit has some of the best, safe, clean BEAUTIFUL neighborhoods in METRO Detroit. Not all of Detroit is ghetto...every major city has a ghetto with all types of national retail. Again your point is not valid...

**Danny** · April-14-11, 10:11 AM

All of Detroit is a ghetto. And the people are a part of it.

**adamjab19** · April-14-11, 10:40 AM

I would feel bad for Kim's and Goodwells if they went under but they are such a niche market that they should be able to find ways to get customers to come to their stores still. They'll have a way of connecting directly with their customers in ways that Whole Foods can't. They need to build those relationships now. They are located in between two grocers already and seem to be doing OK. I know that adding a third may be too much but I think that they would do fine still. Whole Foods is expensive with some of their items. I think the two small grocers listed above can find ways to bring prepared foods, locally grown foods less expensive, with better service to their customers. Or they need to start offering more services that whole foods do not offer such as grocery delivery.

Some businesses suffer from the "Wal Mart Syndrom" where they think when a big store moves into town they think should just roll over, cry uncle, and blame wal mart or whoever. There are the other few business in town that change their business plan, increase services available, and react appropriately to changes in their market area and do well. For example: I worked for a small ace hardware when Home Depot was rolling into the suburbs everywhere. The owner didn't shit his pants. We started offering services way beyond what Home Depot could and getting to know our customers. He didn't go under he actually built a second store on the other side of town a few miles away from Home Depot AND Lowes and is doing just fine.

**HazenPingree** · April-14-11, 05:37 PM

I wonder what percentage of Goodwell's and Kim's sales are prepared foods and what percentage are grocery sales. Especially in the case of Goodwell's, their Pita Pocket sandwiches are extremely popular. If such items made up a sizable proportion of Goodwell's sales, Whole Foods would have less of an impact.

Any ideas as to location?

**gthomas** · April-15-11, 12:05 AM

danny...so what you consider the suburbs? lol wow. I guess there the best...you silly guy. What your definition of ghetto?

**English** · April-15-11, 08:41 AM

I agree with adamjab19 that the smaller stores ought to consider grocery delivery. I know that often I'm too busy to get grocery shopping done if I'm working on a project. Limit the area to Midtown and you can hire a bicycle delivery person. [[I've also suggested this to the Raw Cafe.)

**Left_For_Texas** · April-15-11, 04:55 PM

Originally Posted by Danny

Who needs Whole Foods! organic foods are very expensive and they spoil faster than preservative foods. Anyone who buys organic food have less then 5 days to eat it up. I trying buy some groceries from Whole Foods in Troy and it was spoiled before I put it my kitchen selves. I say forget Whole Foods, I'm hitting Kroger's.

You're funny. How long did you leave the food in the bag before you put it on your shelves? Maybe it spoiled because you should have put it in the refridgerator.

**fryar** · April-15-11, 05:32 PM

This would be a good thing.

I do not retract my position that SF benefits from a dearth of national chains, but this is still real progress.

**French777** · January-09-12, 05:35 PM

I walked by The Ellington Lofts today, and the empty retail space has a "Whole Foods Community Center" moving into the last retail space.

**gthomas** · January-09-12, 07:05 PM

What does that mean? Whole Foods is throwing a pre-construction preview showing of there "Soon-to-be" new market..? Im going to check that out..

Originally Posted by French777

I walked by The Ellington Lofts today, and the empty retail space has a "Whole Foods Community Center" moving into the last retail space.

**Gistok** · January-09-12, 10:30 PM

Originally Posted by truthseeker

Whole Foods sell Chinese grown food.And people here complain about urban farming in Detroit....I guess Americans really are idiots...

Umm..... and you're preaching to the choir....

bartock · January-10-12, 10:10 AM

Originally Posted by Danny

gthomas sez... 'Watch how well Whole Foods do here in the city, probably most than the other locations in Michigan. The Home Depot on 7mile and Meyers is the most profitable in southeast Michigan. Leaving the suburbs store for the city and has been doing very well without suburbanites.'

I watched how Krogers on Gratiot and E. 7 Mile Rd. did well and move away to the suburbs.

I watched how Super K-mart did well on W. 7 Mile Rd. before they went bankrupt and replaced by Home Depot.

'No Walmart...too ghetto. More and better development will come from Whole Foods Market than cheap Walmart. I will always shop local, Whole Foods will not take away my priorities. '

I don't want EVIL Wal-Mart or Whole Foods in Detroit PERIOD! The ghettoes are not ready for those services!

This is the greatest post exchange ever.

**stasu1213** · January-10-12, 12:55 PM

We already have our organic market in the Easter Market. What in the hell is taking Ye Olde Butcher Shoppe so long to open? Is the building going to sit through another year teasing us with false preparations?

**elrick** · January-10-12, 03:07 PM

Originally Posted by Danny

All of Detroit is a ghetto. And the people are a part of it.

Danny, you're an ignorant tool.

SteveJ · January-10-12, 03:16 PM

Whole foods is ok but it is $$$. A lot of the private label whole foods stuff is the same thing as the Trader Joe's private label stuff but twice the price. I don't know how it can thrive in Detroit when you need to be making over $100k a year to buy your groceries there.

**elrick** · January-10-12, 03:30 PM

It drives me crazy to read in my paper and others that there are no "national chain" grocery stores in Detroit.
What about ALDI, where I do a lot of shopping? It's an INTERNATIONAL grocery chain and it has lots of good, fresh products at prices working people can afford -- and in neighborhoods where working families live.
Their prices on produce are often as low as Randazzo's [[which ALSO has a Detroit store, near City Airport).
I haven't tried their meat, though. For that, I go to Yorkshire Market, which is outstanding.
I've got nothing against Whole Foods, but let us not overlook what we already have.
Frankly, I'd take two more ALDIs in strategic locations over one Whole Foods.
And, as far as I know, we haven't had to offer ALDI any incentives to come here.
I'm real big about trying to do business with people who WANT to be here over people who need to be BEGGED to come here.