One way to help solve the grocery problem

[sgrizzle]

I would like to see a large lcoal non-profit to take this project at Eugene Field and spread it elsewhere i West and North Tulsa:
Non-profit Grocery Store

[Conan71]

A non-profit market in the heart of the ghetto, I hope it makes it.  One reason grocery stores don't locate near housing projects is the same reason milk is $5.00 at the jiffy mart on the corner of 23rd & Jackson- rampant theft.

I hope the local thugs will realize they have a neighborhood gem and they will respect it.

[PonderInc]

Uh...not all poor people are criminals...

[Conan71]

Uh...not all poor people are criminals...

You are right they aren't and I apologize if my comment seemed like a generalization, but it's the exact reason why there's not been a grocery in that area up to now.  Unfortunately, and realistically, there's a pattern of theft in areas of low-income housing.  Enough theft to make companies think twice (or not at all) before locating there.  Or if they do, honest customers will pay more for goods to compensate the store owners for those who don't pay. 

The vacant former Albertson's at Pine and Peoria isn't vacant due to being profitable.  There was a real theft issue there. 

[PonderInc]

Albertsons failed b/c it was one of the most expensive stores in the city.  I used to shop at Albertsons on Peoria until I realized I could get about twice as many groceries at Reesor's for the same amount of money.  Expensive grocery stores especially don't do well in poor neighborhoods.

Back to the issue of "crime." 

Look at Blue Jackalope.  It's a small, independently run store in a neighborhood that has it's share of crime (poverty, prostitution and drugs have been a problem over the years...but there are also lots of upstanding, hard-working folks in the neighborhood).  And look what's happening now...thanks in large part to one little store.

Scott Smith opened the Blue Jackalope a couple years ago, and immediately started helping the neighbors get organized.  His store serves as a community meeting place that brings people together.  Folks get to know each other when they shop there; and the store acts as a community communications center...which includes a weekly email that goes out to neighbors in the hood with topics that may interest them. 

Scott knows his customer's names and treats everyone with dignity.  (Regardless of whether they have cash, credit or food stamps.)  He lets neighborhood kids work odd jobs around the place.  (It's fun to see them run to the store after work, eager to buy a pack of gum--not to steal something).  It's not just an "impersonal corporation" that people might consider stealing cigarettes from.  It's part of people's lives, run by a friend, and they're invested in it. 

The store also creates "eyes on the street" that makes the neighborhood safer for everyone.  Plus, there's a community garden going in across the street which will encourage even more people to come together in the neighborhood.

Maybe this is a testiment to Scott's personal philosophy of life...which seems to have more to do with being part of the community and less about maximizing profits.  (Even he will tell you that grocery store margins are wafer thin.)  But I hope it's an example that can be recreated elsewhere. 

If a non-profit wants to take it on in various locations throughout Tulsa, that may be the perfect solution.

[rwarn17588]

You are right they aren't and I apologize if my comment seemed like a generalization, but it's the exact reason why there's not been a grocery in that area up to now.  Unfortunately, and realistically, there's a pattern of theft in areas of low-income housing.  Enough theft to make companies think twice (or not at all) before locating there.  Or if they do, honest customers will pay more for goods to compensate the store owners for those who don't pay. 

The vacant former Albertson's at Pine and Peoria isn't vacant due to being profitable.  There was a real theft issue there. 

Was theft really the reason the Albertson's was so unprofitable? Or is that just unsubstantiated hearsay?

The reason I ask this is because there are other stores in poor areas of Tulsa that are thriving. Contrary to what you hear, theft is a common problem at stores no matter what neighborhood they're in, and stores make adjustments.

Having been in Albertson's a few times, I'm inclined to think the problem was a store that got too fancy with its offerings and priced its products too high, which further depressed sales in a poor neighborhood. I saw the same sort of problem at Schnucks markets in the St. Louis area -- where theft wasn't a problem so much as it was inflated profit expectations.

It seems the stores that keep stocking and pricing to more-realistic levels -- Aldi, Shop 'n Save, Sav-A-Lot, Warehouse -- are doing fine.

[RecycleMichael]

The west Tulsa grocery is awesome. We went in there two weeks ago and I was surprised at how much stuff they had on the shelves. The prices seemed very low to me. Because the building and parking lot were completed by a non-profit, the operating costs are lower.

It is hidden from the street (behind Sonic).

[Conan71]

RW- Some people were driving past the Albertson's at Pine and Peoria to go to the Albertson's at 15th & Lewis because they claimed the prices were lower on Lewis and pricing at the Pine street location was "discriminitory".  Prices were higher to adjust for the shrinkage.  If I'm so far off-base on this, why has no one managed to re-open that space in over a year?  When even Warehouse Market isn't willing to give it a shot, that's telling, unless the rent structure is stupid on the vacant building.  WM is the master at being able to operate in low-income areas.  I frequently hit the one on Union and the one at 31st & Sheridan.  They don't have near the selection as Reesor's, Food Pyramid, et al, but do actually have pretty darn good meat.

I don't know which Peoria location of Alberson's Ponder is referring to (Pine or 41st) but I didn't see my money going any further at the Reesor's at 18th & Yale than I did at the Albertson's at 15th & Lewis.  If anything the meat was way higher and prices on staple goods were comparable. 

FWIW, I appreciate Scott's contributions to his neighborhood and shop there when it's convenient, but comparing his location and philosophy in a neighborhood which is gentrifying to a large store like Albertson's is apples/oranges. 

[sgrizzle]

Albertson's has been in no hurry to sell the property either which has been a hinderance as well.

[rwarn17588]

Albertson's has been in no hurry to sell the property either which has been a hinderance as well.

Schnucks is a part owner of some Albertson's stores. I don't know if it owns local Albertson's stores.

But I do know that Schnucks in the St. Louis area has been heavily criticized for closing underperforming stores, then refusing to sell the property to other parties that potentially might locate a grocery there -- in essence shutting out any possible competition and letting the property become blighted.

That tactic might not violate antitrust law, but it sure as hell is unethical. I wonder whether Albertson's took a page from the Schnucks book in this situation in Tulsa.

[sgrizzle]

Walmart does the same with it's ex stores. That is why most sit for years before becoming a church or call center.

[BierGarten]

Albertson's has been in no hurry to sell the property either which has been a hinderance as well.

I think you are referring to the Pine and Peoria ex-Albertson's.  If so, just wanted to point out that Alberston's sold it months ago to a local investment group that is actively seeking a grocery store tenant. 

[BierGarten]

http://www.newson6.com/global/story.asp?s=10741821

TULSA, OK - The effort continues to get a full service grocery store in north Tulsa.  A new grocery store could open in the old Albertson's location by the end of the year.  It's said to be a well established grocery operator who wants to open a new store. 

The deal depended on a government backed loan and that was approved by the Tulsa City Council on Thursday night.

The old Albertson's store at Pine and Peoria has sat empty for the last two years.  No grocer wanted the store without surrounding development and no developer would buy the property without an anchor tenant. 

11/10/2008 Related story: Quest To Reopen Closed Grocery Store

Now there's a deal in the works for a new grocery store in the old building.

"You have an anchor for a commercial corridor that is in much need of redevelopment and we are on track to make it happen within the next couple of months," said Rose Washington with Tulsa Economic Development Corporation.

The TEDC is ready to make a $2.2 million loan to a grocer who plans to open the store.

"So there is nothing stopping us but process.  The grocer is in place.  He has a contract on the property and soon we hope to have a celebration to talk about who, what, when and how quickly," said Rose Washington with Tulsa Economic Development Corporation.

The money for the loan was approved by the Tulsa City Council from federal tax sources administered on the local level.  The money is a loan, not a grant, and due to be repaid with interest.  It comes just as other small businesses are having success in the area. 

The Fiesta Mart opened in May and is doing better than the company expected.  Another government backed development called FORWARD plans to build just north of the old Albertsons.

"People realize that having a grocery store in that area was a positive plus at first.  The convenience store is back.  The grocery store will be there.  The FORWARD project will be in the four buildings north of that, that will be developed, more jobs, more economic development.  That's a plus positive for the community, nothing but good can come out of that," said Tulsa City Councilor Jack Henderson.

The new grocery store could open as soon as November.  The News On 6 was told the deal will be made next Thursday and that's when the name of the store and other details will come out.

[Conan71]

I went to the new west side grocery a couple of weeks ago after lunch, and we spent some time talking to the fellow who was working the store that day.  He said so far shrinkage (i.e. shoplifting) has not been a significant issue.  He said not having tobacco, candy, or alcohol products seems to solve that problem.  It's well laid out and they are still learning what people want and need in that area.  It's very clean and well kept, prices are comparable to Aldi.

[Michael71]

I would love to see the old grocery return at 12th & Denver.