Can three grocers succeed in one spot? : News-Record.com : Greensboro & the Triad's most trusted source for local news and analysis

GREENSBORO — Ladies and gentlemen — gather your VIC cards, print your organic grocery coupons, and let’s get ready to ruuuuumble.

The Friendly Center grocery wars will soon commence.

In this corner, coming in at 72,876 square feet and featuring a Starbucks, a bank and eVIC savings — HARRIS TEETER!

Its opponent, ranked 19th in Supermarket News’ list of top 75 retailers this year and spanning 34,000 square feet — WHOLE FOODS MARKET!

And waiting in the wings — maybe — it’s the store that so many have hoped for, the purveyor of Two Buck Chuck and fine frozen foods — TRADER JOE’S!

• • •

Harris Teeter, a mainstay at The Shops at Friendly Center for years, faces 2012 with some competition.

Whole Foods Market, set to open this spring in the Sears building facing the Friendly Center, specializes in organic and natural foods free of preservatives and artificial flavors, coloring and sweeteners.

The company joins the Friendly Center area because it has the demographics that Whole Foods is looking for: college-educated, professional residents with an interest in natural food.

Customers patronizing its Winston-Salem store have asked for a store in Greensboro for some time, said Darrah Horgan, the company’s public-relations specialist.

According to demographicsnow.com, the estimated median household income for Friendly Center-area residents this year ranges from $32,782 to $61,560 — well above the county average of about $30,485.

There’s also a higher than 90 percent employment rate among residents, and nearly 66 to 78 percent are considered white collar, or professional, workers.

It could be why Trader Joe’s might consider a store there, too.

Trader Joe’s spokeswoman Alison Mochizuki won’t confirm or deny any plans for opening a Greensboro store.

But rumors have circulated for years that Trader Joe’s might come to Greensboro. The chain, known for its affordable specialty foods, draws business from local residents at its Chapel Hill and Charlotte stores.

Area Trader Joe’s fans even established a “Bring Trader Joe’s to Greensboro” Facebook page.

Last week, city leaders said an out-of-town developer wants to build a 50,000-square-foot shopping center that could include a Trader Joe’s. First, they would need to approve a rezoning request for the proposed site, which is now a residential neighborhood at the corner of Hobbs Road and Friendly Avenue.

There’s some opposition to this proposal, but without confirmation from the developer or Trader Joe’s, a store opening here is still speculative.

Tony Collins, a Greensboro resident and business owner, believes that all three supermarkets — if Trader Joe’s does join the area — could thrive there.

Collins owns Collins & Galyon General Contractors and served on the city’s zoning commission for six years.

Competitors often cluster together, he said: “How many clothing stores are at Friendly Center? Are you going to limit it to one or the other? Are you going to tell Macy’s they can’t go there because there’s already a Belk?”

Horgan said customers benefit because more competition equals better prices.

“We all have to coexist. It makes everybody stronger,” she said.

And it’s been proven in other markets, Horgan said, that Whole Foods can prosper alongside other supermarket chains.

Collins said most people, including his own family, shop at more than one grocery store.

Take Rebecca Mann and Cory Rayborn of Jamestown. Like many budget-conscious shoppers, they peruse the weekly grocery ads and compose their list from what’s on sale.

They mainly shop at Harris Teeter, Food Lion and Lowes Foods. And if they’re visiting Chapel Hill, they often pack a cooler to fill with organic vegetables and specialty items from Trader Joe’s.

Even if Trader Joe’s did open a store in Greensboro, Mann said she wouldn’t shop there exclusively. For most consumers, stores like Trader Joe’s and Whole Foods Market fill a specific grocery need.

According to the Food Marketing Institute, consumers make store selections based on products and brands. Also called fill-in shopping, a consumer may purchase produce and organic meats at Whole Foods, then go to Trader Joe’s for some of its specialty items, and Costco or Walmart for such staples as paper products and other bulk nonfood items.

Mann believes diverse supermarket choices at the Friendly Center area will only be a benefit.

“I think it would be convenient to be all at one place. I think it could even bring more people to that Harris Teeter because people would come from all over the place to come to Whole Foods and Trader Joe’s,” she said.

Researcher Diane Lamb contributed to this report.

Contact Tina Firesheets at 373-3498, or tina.firesheets@news-record.com

hawkj68

December 28, 2011 - 8:35 am EST

I think they are all uniquely different ~ so I think its possible for them all to survive. I know that I would enjoy having the convenience of them all in the same spot.

Poindy06

December 28, 2011 - 10:04 am EST

Convenience? I find nothing convenient about Friendly Center. It's very poorly designed, difficult to navigate and always congested.

Bosco

December 28, 2011 - 1:37 pm EST

"It's so crowded, nobody goes there". Yogi Berra

gnosticgirl

December 28, 2011 - 10:17 am EST

I like the idea of having all three stores available too. But I do not live in that area and frankly am tired of having to travel across town to find decent shopping. The closest store with similar options is The Fresh Market which is a great option but lacks the variety I am looking for. Yes, my household meets and in fact is well above the average income of the friendly center area. There are other areas in town that meet the demographiics required to support such stores. Maybe if Greensboro had a better road system everyone would have better access without having to take numerous side roads to get anywhere. Then there are always those area of town that have no grocery store at all! Greensboro needs a more balanced approach to development.

Traveler

December 28, 2011 - 10:53 am EST

How do you propose "more balanced development"? I hope you aren't suggesting the new left leaning city council dictate where businesses locate.

Business people look at several factors before determining a location. Among them are household income, total population, safety, et al.

You mention there are no grocery stores in large areas of east and southeast Greensboro. The income is low. Theft is high. Grocery profits are razor thin. Stores cannot afford for people to "sample" the food, or take expensive grocery carts to carry their bags home.

Please tell me how your would create "more balance".

December 28, 2011 - 10:59 am EST

Wow you are certainly showing your bias. I live in northern Greensboro but I also care about whether people besides me have access to healthy choices. I don't think that is a liberal or conservative value. And people steal in all demographics maybe not in such obvious ways. Maybe you need to do your homework?

tobi

December 28, 2011 - 1:20 pm EST

SMH at Traveler. I guess those living in southeast and east Greensboro should just kick rocks and forget about healthy eating because they don't make enough.

December 28, 2011 - 1:30 pm EST

I believe everyone should have healty choices.

What I asked is how to you have "more balanced growth"? One of the new city council members has history of trying to have a planning commission dictate to individuals and businesses. She scares me. Anyone who wants to increase the authority of government scares me.

Again I ask, how do you propose "more balanced growth"?

December 28, 2011 - 1:59 pm EST

Hi traveler, I think you ask a valid question- I don't think there are any easy answers to that question. I do think that city officials have a responsibility to find the answers to why we have such disparities in access in our city. We do elect them and pay taxes. And yes people on the east and southwest part of town pay taxes too. Why should particular communities and special interest groups have influence just because they gave more money and play golf/go to church with the right people? There are people who have lived in this city their entire lives who have contributed consistently to the community and who do not benefit in equal measure. I do believe in free will and there is just not the will to do it. The demographics of the city is changing rapidly and some refuse to be ahead of the curb. I do not think we will prosper fully as a city unless we address this issue.

December 28, 2011 - 4:08 pm EST

I honestly do not think development has anything to do with who you play golf with. I think businesses locate where they think they can make the most money. I believe a grocery store in the Friendly SC can make more money than one located along east Market St.

It's not racial. It's economics and social/economics.

It scares me that a planning commision should even think about telling businesses where to locate. As Thomas Jefferson (I think it was TJ) wrote, the government that governs best, governs least.

rooster8786

December 28, 2011 - 4:34 pm EST

gnosticgirl - With the district representation system we have in Greensboro AND Guilford County, you have just as must opportunity to play golf, or any other thing, with your district representative as anyone else, in any other district, does. That would be your opportunity to discuss development, healthcare, housing, etc. Your idea of equal development across the city smacks of socialism and/or a utopian society; both of which cannot exist infinitum...

December 28, 2011 - 9:35 pm EST

I don't like or want to play golf- that's the whole point.... Can I make a deal with a representative on the basketball court?:) I am not an advocate of socialism but it does exist successfully in many areas In the world including many countries in Europe. It is such a cop out to pull the socialism card.

citywatcher

December 28, 2011 - 10:36 am EST

Friendly Center is geographically at the center of Greensboro (downtown is technically on the east side of Greensboro if you look at a map). So its a perfect location for these three stores because the location is fairly close to anywhere in the city. Its only two miles west of downtown. The proximity to Wendover Ave, Battleground Ave, Holden Rd and Bryan Blvd makes it an easy commute no matter which direction you are coming from. The location is also in a wealthy area of town. These upscale stores and restaurants that move there have done their homework.

December 28, 2011 - 10:46 am EST

Let's see a map that identifies the geographic location of stores in Greensboro. Geographic center makes no difference if it's not in your area of town, your property value is not enhanced, and you have to travel down a maze of roads just to reach wendover, etc. its all a matter of perspective. Customer is always right not those who like to justify large corporations. I know Greensboro like the back of my hand- lived here all of my life and have looked at a map, in fact many over the years. I will keep spending most of my money in my area of town.

Alf42

December 28, 2011 - 1:07 pm EST

I doubt these national companies will be consulting your expertise when selecting a location for their stores. Median income is what matters, not feelings or whether residents have access to healthy food choices, and nor should they in a free society.

December 28, 2011 - 1:40 pm EST

I would not be interested in them consulting me. If by free you mean free market you couldn't be farther from the truth- we don't have a free market-there isn't one country in the world that does. When these companies start paying their own way to move their businesses to our city without expecting an incentive (hidden handouts, welfare, whatever you want to call it) then I will believe in free market. When my street gets paved (using "free" tax dollars) every six months because there is a high end shopping center on it instead of.... Never, than I will believe we are in a free market. All of your free talk is bull crap- free for some but not for all.... To whom much is given much is required

December 28, 2011 - 11:07 am EST

If Trader Joe's is looking to come to Greensboro quietly, until their "ducks are in a row", hooray for the N&R NOT allowing this to happen. If they do NOT come to Greensboro, will the N&R report on this non-story with as much enthusiasm?

NOREZONINGSTARMOUNT

December 28, 2011 - 11:25 am EST

I bet Harris Teeter would not let them in Friendly Center. Why is Whole Foods at Sears? Because it is not part of Friendly Center controlled by the same landlord. Trader Joe's should be in the center. Not tearing down houses, creating more traffic, and destroying yet another residential area that has been in place since the 1940's.
It is time the N&R told this story from all sides! Interview some home owners and associations. We know the developers want it to make money. Is it really Trader Joe's? OR is it Sheets? MMM interesting.

axelskater

December 28, 2011 - 1:26 pm EST

There is nothing to tear down at the corner of Hobbes & Friendly. "NOREZONING" - you did not do your homework. Friendly Center / Shoppes at Friendly development does not own that corner of property and therefore Harris Teeter has no "non-compete" clause or say-so in what goes there. It is the site of a never-realized housing development which would have been marketed to wealthy retirees and did not materialize post-housing crash. I imagiane (Lomax?) is anxious to unload it. It is now a clay soil field.

December 28, 2011 - 1:38 pm EST

axel, did you do your homework? The corner you speak of is Northline &Hobbs. The corner being talked about for development is the NW corner Hobbs & Friendly. They're in the same neighborhood, but only a block apart...

triadwatch

December 28, 2011 - 1:42 pm EST

theresa, you are wrong the properties that want to get rezoned are across hobbs from the lomax piece of crap looking area of friendly center where hobbs meets friendly where you have the residential houses next to the townhomes and the first lutheran church

December 28, 2011 - 2:55 pm EST

Wrong Corner! But you are right Lomax is another eyesore that should not be developed. How about a nice green place? Townhouses behind a shopping centers dumpsters now that was intelligent planning .

haztwo

December 28, 2011 - 6:17 pm EST

Actually Friendly Center DOES own property at the corner of Hobbs and Friendly. The houses on Hobbs across the street from Flemings are rentals. Starmount purchased them with the hopes of rezoning and expanding FC.

I also question how a third grocery store can go into FC. I know that both centers have strict non-competes. And the centers were set up separately so that the non-competes at Friendly Center could not be called into question at The Shops at Friendly. Which is how and why we have 2 italian restaurants and 2 delis and 2 ice cream places. I believe Cold Stone tried to file a breach of contract when it was announced that Ben and Jerry's was coming in, but the suit failed because of the separation of the two centers.

Since Sears owns Sears and the the land around it, Whole Foods was able to go in. I do not see HT agreeing to let Trader Joe's infringe on their territory. Trader Joes would have to either a) go in on the old side or b) a new shopping center with a whole new set of non-competes would have to be built. aka the other corner of Friendly and Hobbs.

timflowers

Harris-Teeter quite likely has a restriction in their lease that forbids direct competitors from locating within either Friendly Center or The Shoppes at Friendly. At the same time, HT is probably forbidden to sell things that compete with other merchants, such as clothing. I've been involved with lease negotiations at malls and mall management companies require a list of what you plan to sell at your store, and they check from time to time to make sure you're sticking to what was agreed to. As a gift shop operator, for example, I wasn't allowed to stock anything that strayed very far from home decor. Another commenter was correct in saying that Whole Foods got around this by partnering with Sears on a property that isn't actually in either Friendly center. I believe the site chosen by the as yet un-named grocer is also on property that is free and clear of Friendly lease restrictions.

Copper1

December 28, 2011 - 11:53 am EST

Always seemed odd there were 25+ clothing shops - 3 drug stores and several eating places but only one food store. Thinking outside the box gave Whole Foods a chance to pin HT's ears to the ground in their once sacred spot.

whyus

December 28, 2011 - 1:41 pm EST

Parking and traffic is already a fiasco at Friendly, but I do believe the three have different target markets.Personally, I think HT has the most to lose out of this as the are already targeting mid-to-high end consumers- a comparison of their prices to Food Lion or Walmart should easily reveal this. True, they have greater selection of exotic items, but so would Whole Foods.

"Can three grocery stores survive in the same spot?" I don't know. Can thirty restaurants survive in the same spot? Maybe. Try Wendover I-40

December 28, 2011 - 1:46 pm EST

As a resident of Friendly Avenue, I'm glad to see new choices opening up, although I wish it was an Aldi store instead of Whole Foods. Harris Teeter needs some serious competition in the center/north parts of the city. I don't know whether to feel pity for the people I see loading their carts at HT, or write them off as people with more money than sense. The prices HT charges are borderline criminal, but it's a free country so spend what you want. But you can cut your bill almost in half by starting out at Aldi, getting a few other things at Food Lion, and leaving Teeters for specialty items and things on sale. But even that's not a sure bet as I've seen cat food on sale at HT and it's still priced higher than the everyday price at PetSmart. You might spend an extra dollar on gas going this route, but that's insignificant when it saves you $20 to $50 every week without sacrificing either quality or nutritional value.

December 28, 2011 - 2:03 pm EST

You are so right about HT- I refuse the pay the high prices.

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