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Farmer Jack grocery leaving Toledo? - As of this evening, nothing definite yet. Rumors: Farmer Jack will be replaced by Kroger, Giant Eagle, or Food Basics. It was announced on Tuesday that 13 Farmer Jack stores would close in the Detroit area. On WSPD Thursday afternoon, a Farmer Jack rep said that the company is discussing "all" possible solutions with the Toledo food unions. It seems the stores will probably sell someone's groceries and not remain empty like Foodtown's buildings. I visited the Farmer Jack near me Thursday evening, and there were a lot of empty shelves. The beer section was well-stocked, so they know their priorities. I say shop at the Phoenix Food Co-op on Sylvania Ave. That's a cool store, along with the old Churchill's on Central Ave and all the little family-owned produce and specialty stores.

From the Detrit story ...

"The closures are mostly at older Farmer Jack stores. Neither Farmer Jack nor its union would comment Tuesday night on reports that said the company planned to close stores. Two weeks ago, employees agreed to take a 5 percent wage cut to help boost the chain’s profitability and minimize store closings. It’s not clear how many employees will lose their jobs."

"The Detroit-based grocer also is considering store closures in its Ohio market, according to a letter to employees from Farmer Jack President Mike Carter, which was obtained by The Detroit News. Farmer Jack has six stores in the state, including three in Toledo."

" “We met with associates in our Ohio area stores to let them know we are assessing the viability of our presence in that market as well as the options available to us,” Carter wrote in the Dec. 31 letter. “No specific course of action has been determined, but when it is we will be sure to share that information with you.” "

So what's the problem with grocery chains in Toledo lately? Foodtown and now Farmer Jack. Just bad business practices? Too many stores, competition?

Giant Eagle, Meijer, Kroger, Aldi's if they're still around. What about all those "dollar" stores? They seem to be more popular than they used to be. I think there's a Dollar General right next to the Farmer Jack on Laskey.

And of course, the Satan of stores, the Big Evil, Walmart. Are they having an impact? I don't think they've been in Toledo long enough, have they?
posted by jr to business at 7:09 P.M. EST     (4 Comments)

Comments ...

Cool weblog. I found it by looking up issues relating to suburban sprawl on google.com for a research project I am doing for my thesis.

Now to comment on the grocery stores...
Grocery stores rely on high volume to make a profit and the Toledo market is saturated with grocery stores, especially with Giant Eagle and Wal-Mart now making a push into this market. We are seeing a market correction, even though this isn't a good thing.

It was too bad that the Food Town chain went under as they were a Toledo based company. They made investments in this community and these are the types of businesses that should be encouraged to stay here. Losing things like Food Town cause Toledo to become a dead city because Krogers and Meijers are based in other cities and really have no interest in Toledo outside of making more money. When the city is taken over by Krogers, Wal-Marts, and Meijers, it causes Toledo to lose its identity and it becomes just another city just like any other in America. Plus investment by small-business entrepreneurs stops as it is very difficult to compete with these big chains. I agree 100% with your comment to support the local stores as much as possible. These are the businesses that have an interest in the quality of Toledo.
posted by Kevin at 11:18 P.M. EST on Mon Jan 12, 2004     #

Sprawl. If you haven't already, check out this thread, which mentions Dr. Richard Florida who has ideas for improving local economies without sprawl. Here's another thread about local sprawl.

In Russ Lemmon's Jan 11 column, Russ mentions Farmer Jack and sprawl.

"Before Farmer Jack closes its six grocery stores in the Toledo area, I wish company executives would stop by the nearby businesses at each location and apologize for letting them down."

"A good place to start would be the Farmer Jack on Airport Highway, just west of Spring Meadows. At least a dozen businesses will be affected by the closure of the store that opened 35 months ago."

"Farmer Jack didn’t take over an existing location on Airport Highway. It became the first occupant of a shopping center, one that was built on the site of an apple orchard. Predictably, businesses -- including three that called Spring Meadows home -- flocked to be near it. Now, they’re all left in the lurch until a replacement is found. It’s another example of urban sprawl gone bad."
posted by jr at 10:25 A.M. EST on Tue Jan 13, 2004     #

"The three Farmer Jack stores in Toledo apparently will be kept open as discount supermarkets, but the fate of the three suburban groceries of the same name is unclear."

"The permit applications ask for the stores to be called Food & Drug Basics, which is the no-frills grocery chain owned by the Great Atlantic & Pacific Tea Co., the owner of Farmer Jack."

"A Huron Sign Co. official said she did not know whether Great Atlantic & Pacific Tea Co. sought sign-changing permits for its Perrysburg, Sylvania, and Holland Farmer Jack stores. Officials in those communities said yesterday there were no such applications, meaning that perhaps those stores will be closed or sold."

"Food & Drug Basics, as they exist in Canada, are about 30,000 square feet, compared with 40,000 to 60,000 square feet for the local Farmer Jacks. The Food Basics stores do not have full deli, meat, or fish departments, selling such items prepackaged only. The stores have a pharmacy area."
posted by jr at 04:54 P.M. EST on Tue Jan 27, 2004     #

"It was either cave-in, or lose your jobs. Hourly Toledo-area Farmer Jack workers had a tough choice -- either take a pay cut, or lose their jobs entirely. They chose the cuts, but that will mean that three suburban Toledo Farmer Jack stores will stay open as Farmer Jack, and three will be transformed into a no-frills chain store called Food Basics."

"The chain bills itself as having the "best prices everyday". Shoppers will notice why. There's bakery products but no baker. You can buy meat but there's no butcher there to cut it. Customers also bag their own groceries. There will only be half as many products stocked. But pharmacies at the six stores will remain open."

"There are 550 Farmer Jack workers represented by the United Food and Commerical Workers Local 911. Most will keep their jobs but union officials say the average wage will be cut by 6%."
posted by jr at 10:40 P.M. EST on Tue Feb 03, 2004     #

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