Whole Foods CEO tells Bloomberg new Detroit store 'exceeding our wildest expectations' (for sale, university)

[zthatzmanz28]

So, I am working a block from the new Whole Foods. I have been inside once. Seem the store has cut back on many of the organic produce it sells in places like Ann Arbor and Bloomfield. Lots of conventional fruits and veggies. THe aisles are narrow and selections appear to be less than their other stores?
Also, I noticed very few people walking out with BAGS of groceries? Most were leaving with small bags with just 3-4 items? Most of the people I work with said they were SHOCKED by the prices and would never shop there. I understand the cost of organics and such, but the residents of Detroit really need an affordable grocery that has decent food.
Judging by the customers wearing scrubs, the majority of business seems to be from the DMC with some Wayne State students. These shoppers seemed to be buying small items like sandwiches and other deli items for lunch.
I wonder how long WF will last once the tax abatements are gone? Will there be enough sales to continue to justify the Detroit location when the whole cost of operating the store starts to affect the bottom line? Time will show if Co-CEO Walter Robb was right. But, I do not see the residents of Detroit embracinging the WHOLE FOOD line of grocery anytime soon. The question is will DMC employees be enough to keep it profitable?

[313Weather]

Originally Posted by zthatzmanz28

So, I am working a block from the new Whole Foods. I have been inside once. Seem the store has cut back on many of the organic produce it sells in places like Ann Arbor and Bloomfield. Lots of conventional fruits and veggies. THe aisles are narrow and selections appear to be less than their other stores?
Also, I noticed very few people walking out with BAGS of groceries? Most were leaving with small bags with just 3-4 items? Most of the people I work with said they were SHOCKED by the prices and would never shop there. I understand the cost of organics and such, but the residents of Detroit really need an affordable grocery that has decent food.
Judging by the customers wearing scrubs, the majority of business seems to be from the DMC with some Wayne State students. These shoppers seemed to be buying small items like sandwiches and other deli items for lunch.
I wonder how long WF will last once the tax abatements are gone? Will there be enough sales to continue to justify the Detroit location when the whole cost of operating the store starts to affect the bottom line? Time will show if Co-CEO Walter Robb was right. But, I do not see the residents of Detroit embracinging the WHOLE FOOD line of grocery anytime soon. The question is will DMC employees be enough to keep it profitable?

I know you're going to be accused by some of "being too negative", but you make some good points.

All I can say is "Only time will tell."

[animatedmartian]

I thought it was pretty obvious that WF choose that location specifically to appeal to college and medical workers. If they really wanted to go after Detroit residents, wouldn't they have chosen a location with a higher concentration of permanent residents? Or maybe the assumption is that the area will gentrify in time meaning the current conditions aren't really too relevant.

[SadieMirsade]

Originally Posted by animatedmartian

I thought it was pretty obvious that WF choose that location specifically to appeal to college and medical workers. If they really wanted to go after Detroit residents, wouldn't they have chosen a location with a higher concentration of permanent residents? Or maybe the assumption is that the area will gentrify in time meaning the current conditions aren't really too relevant.

Whole Foods Worker Reveals What You Should And Shouldn't Buy There - SFGate

[james777]

Originally Posted by animatedmartian

I thought it was pretty obvious that WF choose that location specifically to appeal to college and medical workers. If they really wanted to go after Detroit residents, wouldn't they have chosen a location with a higher concentration of permanent residents? Or maybe the assumption is that the area will gentrify in time meaning the current conditions aren't really too relevant.

When Whole Foods chooses a new location they look for two things, a high educational level of their prospective customers and a high income level. Whether the customers are homeowners or transients, it doesn't matter. This is criteria that they use for all of their stores, and I am sure Detroit is no exception.

[us66]

It's nice to have something like that in the city, but the location is a lot smaller than the suburban ones. The Rochester Hills one is like a religious experience, if one can have one of those whilst grocery shopping.

[zthatzmanz28]

Originally Posted by animatedmartian

I thought it was pretty obvious that WF choose that location specifically to appeal to college and medical workers. If they really wanted to go after Detroit residents, wouldn't they have chosen a location with a higher concentration of permanent residents? Or maybe the assumption is that the area will gentrify in time meaning the current conditions aren't really too relevant.

The point was is this going to be enough to keep WF in business? I believe there were some huge tax subsidies involved in getting WF to come to Detroit. If that is the case, will the net sales offset the cost of doing business once the subsidies expire?

They (media and WF CEO) all made it sound like WF was akin to the second coming and that the CITY of DETROIT was embracing the WF concept, when in reality it is a very small percentage of Detroit that is embracing the store and Detroit as a whole is not participating.

I just think the stories should reflect the reality---WF is a favorite amongst the medical crowd as John Q Public shuns the WF philosophy and PRICES...but the residents really aren't relevant, are they?

[animatedmartian]

Originally Posted by zthatzmanz28

The point was is this going to be enough to keep WF in business? I believe there were some huge tax subsidies involved in getting WF to come to Detroit. If that is the case, will the net sales offset the cost of doing business once the subsidies expire?

Even if it wasn't, I can't imagine WF would close up one store in a downtown area unless A) that downtown area substantially loses wealth (which for Detroit means that for whatever reason the DMC and/or Wayne State are having major problems), or B) WF is losing company revenue and needs to cut costs by closing weak locations. Seems kinda pointless to just open a store only to close it later, on purpose.

Not that I myself am in favor of subsides, but I understand that the city uses them to jumpstart development that otherwise might take decades to occur naturally. There's also the added complexity of the city's financial burdens that are using up funds that otherwise wouldn't require the city to use such subsidies.

They (media and WF CEO) all made it sound like WF was akin to the second coming and that the CITY of DETROIT was embracing the WF concept, when in reality it is a very small percentage of Detroit that is embracing the store and Detroit as a whole is not participating.

That's not too different from if this occurred in any other city. It's not too long ago where businesses were leaving the city in droves and it's been many decades that businesses have been leaving downtown. Even though one business doesn't seem like a whole lot, in reality WF is one of many businesses that have been opening up downtown in the past several years. WF just gets a big deal because of the whole 'food desert' thing.

I just think the stories should reflect the reality---WF is a favorite amongst the medical crowd as John Q Public shuns the WF philosophy and PRICES...but the residents really aren't relevant, are they?

For the reality of the 'irrelevant residents', that's how most cities work. There are stores that not everyone who lives next to it will patronize. There are businesses, organizations, and even infrastructure project that not every resident in the city needs or has to interact with. But that doesn't mean, other people, who may or may not be residents, can't patronize those same businesses, organizations, and infrastructure projects. That's the sort of freedom Detroit (and non-Detroit) residents have with where they want to spend their money.

[maclock]

Originally Posted by james777

When Whole Foods chooses a new location they look for two things, a high educational level of their prospective customers and a high income level. Whether the customers are homeowners or transients, it doesn't matter. This is criteria that they use for all of their stores, and I am sure Detroit is no exception.

Is that so? If it is, then there must be a couple of things about the neighborhood of Englewood, in Chicago, that the rest of the world has managed to overlook for 50 years or more.

Whole Foods Stretches Low-Income Strategy

Emanuel promotes new Whole Foods in Englewood: Upscale grocery plans to build in impoverished neighborhood

[belleislerunner]

I'm a resident of Detroit and I embrace Whole Foods. I shop there weekly. It's a great resource for Midtown/Downtown living.