Grocery Chains Leave Detroit

[santafe2]

Detroit is one of America's largest cities, but there isn't a single grocery chain store within the city limits.

So independents should step in, no?

Such was the case for Zaccaro's Market, a gourmet grocery store that opened, [in Detroit], in April 2008 with much fanfare from local media before closing down just 10 months later.

Um, deflationary depression may not be the best time to open a high end super market in the hardest hit city in the US.

She started out optimistic about Zaccaro's chances. Detroit is underserved by groceries, and a number of new housing starts were slated for Zaccaro's neighborhood.

Oh boy, it may not have been smart to count on that.

The housing market in the neighborhood slowed, particularly after the credit crunch began.

Check.

Add in an unsuccessful attempt at restructuring debt -- including a $200,000 loan from the city...

My business is failing, my sales are half my projections...yes, that's it, I'll increase my overhead and go farther into debt.

Warner, who is in litigation with Detroit Economic Growth Corp. over Zaccaro's loan, believes her store filled a need that is now going unmet.

Lattes with organic soy...do you take food stamps?

http://money.cnn.com/2009/07/22/smal...ney_topstories

[flintlock]

Re: Grocery Chains Leave Detroit

There are some real smart guys out there in corporate America these days! A high end grocery store in Detroit? Pure genius.

[vinoveri]

Re: Grocery Chains Leave Detroit

There are some real smart guys out there in corporate America these days! A high end grocery store in Detroit? Pure genius.

don't worry, the bad loans from these genius deals will end up ... well, you know where, don't you?:eek:

[pescamaaan]

Re: Grocery Chains Leave Detroit

grocery stores absent from inner cities has been a problem for a long time. In fact i have a friend who set up a veggie van to bring fresh food to those who lacked access...it was a huge hit

http://www.cdcg.org/NR07_NYT_VM.html

[Master Shake]

Re: Grocery Chains Leave Detroit

So independents should step in, no?

Um, deflationary depression may not be the best time to open a high end super market in the hardest hit city in the US.

Oh boy, it may not have been smart to count on that.

Check.

My business is failing, my sales are half my projections...yes, that's it, I'll increase my overhead and go farther into debt.

Lattes with organic soy...do you take food stamps?

http://money.cnn.com/2009/07/22/smal...ney_topstories

Having a grocery store withing reasonable driving distance is a right, isn't it? We need the government to step in and provide grocery services to the downtrodden people of Detroit.

[Spartacus]

Re: Grocery Chains Leave Detroit

There are some real smart guys out there in corporate America these days! A high end grocery store in Detroit? Pure genius.

It's perfect for the Tony Robbins generation

"high end" (high profit margins - no use going after anything else, is there?)

and

"OPM" (Other Peoples' money)

Garbage in ("positive thinking", "the power of thinking big", Tony Robbins, Zig Ziglar, Russ Whitney, "the law of attraction", Deepak ChOPRAH, "visualize and manifest (don't work) your way to success", "No Money Down")

→ garbage out.

QED