Quality grocery stores in OKC

[Roger S]

I've only heard this through word of mouth from someone that lives in Mesta Park but they said they heard the Homeland on Classen has been approved for a $3.5 million upgrade.

Anyone else heard anything about this?

[bchris02]

I've only heard this through word of mouth from someone that lives in Mesta Park but they said they heard the Homeland on Classen has been approved for a $3.5 million upgrade.

Anyone else heard anything about this?

That would be awesome news if its the case. Homeland is sitting on a gold mine there. With all the growth in the urban core, much of it being high-income, they are crazy for not trying to tap into that market.

[bchris02]

PhiAlpha tried to start a thread on the 18th and Classen Homeland but it doesn't look like its functioning properly. Anybody have any updates on this? Are the rumors true about a possible renovation?

[Pete]

Homeland - 18th & Classen - OKCTalk

[bchris02]

Steve said multiple times in his chat this morning that a grocery store is in the works for Midtown. Anybody have any more info on this?

[Pete]

Steve said multiple times in his chat this morning that a grocery store is in the works for Midtown. Anybody have any more info on this?

That's not at all what he said.

[Brett]

Shocked to see that Uptown Market is planned for NE 23rd and MLK redevelopment.

[bchris02]

Shocked to see that Uptown Market is planned for NE 23rd and MLK redevelopment.

Likewise. If they can build out there, certainly they can build in Midtown or Classen.

Buy for Less should start building these all over the metro targeting the major Homeland locations like OnCue is with 7/11.

[Urbanized]

I suspect some of the thinking is that if they build an upscale-ish product they will also lure some business from the underserved Midtown/Uptown/downtown market and surrounding neighborhood while also generating extra loyalty from the NE side for believing in their ability to support something other than deep discount. That said, they will need to demonstrate that they are still in the market price wise in an effort to not lose bargain shoppers in their neighborhood.

[NWOKCGuy]

I thought this was pretty interesting considering the thriving grocery options in Charlotte.... Walmart is #1 grocer in Charlotte. Also, Family Dollar and Dollar General have larger share of grocery market than Trader Joe's.

What's In Store: Walmart regains top grocery spot in Charlotte market

[Urbanized]

There is no way. I'm astounded that they even HAVE Wal-Mart in Charlotte. Now you tell me it's the number one GROCER? Shocking.

[bchris02]

Charlotte has a Harris Teeter on almost every corner and they are all nice and very well kept. In addition they also have Publix and Bi-Los everywhere. OKC only has Uptown Grocery and two Crest locations that compare - in the entire metro. 90% of OKC's grocery stores would go out of business in Charlotte. Sorry but when it comes to grocery stores, Charlotte >>> OKC and there isn't even a debate.

[Urbanized]

And yet people still flock to Wal-Mart in droves apparently. I thought they were all sophisticates?

[Pete]

The mid-tier grocery chains are shrinking all the time. It's pretty clear people prefer either deep discount (Walmart, Costco, Winco, Sams) or upscale/organic/specialty (Whole Foods, Trader Joes, Fresh Market, Sprouts, Natural Grocers, Central Market, Pavillions, Gelsons).

Most these places didn't even exist just a decade or two ago and all are growing like crazy, and eating away at the traditional (middle market) stores.

It's the exact same thing that happened to department stores. They were completely overtaken by discounters yet some willing to pay more at places like Nordstrom to have a nice experience.

Every time I'm in the traditional grocery stores here (which is less and less), I notice that the huge percentage of patrons are women 45 and older. Their clientele is rapidly aging and their market share is shrinking every day.


Homeland stinks but really the more import thing for OKC is to continue to add the discounters that are run very well and the upscale/specialty stores.

[bchris02]

And yet people still flock to Wal-Mart in droves apparently. I thought they were all sophisticates?

In Charlotte there are options. Wal-Mart also only has a 22.4% marketshare as compared to OKC where they have 60%+. I wouldn't consider that flocking to Wal-Mart in droves. They have a lot of choices there and the market is very fragmented. You cannot even begin to compare the two grocery markets.

Grocery stores is one area where the situation in OKC really is bad and there is no disputing that. In Charlotte, no matter where you are in the metro you have a multitude of quality choices within an easy drive. From where I live, within 5 minutes I had a Harris Teeter, Costco, SuperTarget, Food Lion, and Wal-Mart. The only time I ever had to drive more than 5 minutes to get groceries is if I wanted to go to Trader Joe's. In OKC, unless you want to go to a Wal-Mart or a dirty, smelly Homeland, you'll have to drive a great distance - much farther than you should have to in a major city - to get to a quality store. It's that way here even in "nice" areas.

Every time I'm in the traditional grocery stores here (which is less and less), I notice that the huge percentage of patrons are women 45 and older. Their clientele is rapidly aging and their market share is shrinking every day.

I find that to be the general rule, even in Wal-Mart Neighborhood Markets. The truth is Millennials are far more apt to just eat out than they are to cook. Older people who own homes and have families are more likely to cook themselves so they will spend more at the grocery store.

[Pete]

Here is a good article on the grocery wards in the DFW area which shares many of the same players with OKC:

Big grocery chains are feeling the pinch from little guys | Dallas Morning News

After steamrolling into the North Texas market in the 2000s and gobbling up grocery sales, Wal-Mart is struggling here. Its market share fell in 2014 and in 2012.

Wal-Mart’s share of the Dallas-Fort Worth market fell from 27.8 percent in 2013 to 27.1 percent in early 2014. That’s just below the share it had in 2011, even though it opened 15 stores here during that time. Wal-Mart has almost 120 stores in the Dallas area.

[zachj7]

Ugh, spread a little of that lovin' up this way why don't ya Dallas.

[bchris02]

WinCo should finally be a real competitor to Wal-Mart in this market. That will be a very welcome thing.

The other chains entering the market i.e. Whole Foods, Sprouts, Natural Grocers don't directly compete with Wal-Mart but should effect marketshare simply because OKCitians haven't really had choice until very recently.

The grocery market in DFW is still very different from OKC being that they have Kroger/Tom Thumb as well as other options on the high-end like H-E-B Central Market. Despite Wal-Mart being the dominant grocer in the metroplex, they only have 27.8% of the market, which is less than half of the marketshare they have in OKC.

[ou48A]

I wish we could get more H-E-B Central Market types of stores in our area.
But I do like the new Norman Crest store.

[OklahomaNick]

Thought many of you reading this thread would enjoy this article. Lots of references to Whole Foods competition.

Is Whole Foods Still the Darling of the Grocery Industry?
May 9, 2014

Is Whole Foods Still the Darling of the Grocery Industry? | Retail content from National Real Estate Investor

It was bound to happen sooner or later—as organics-focused grocery chain Whole Foods survived through the worst recession in decades and managed to gain an ever-growing customer base, others in the supermarket sector began copying its strategy. Grocery chains from Kroger to Publix have been adding on selections of organic products to their stores, and there has been a steady stream of newcomers like Fresh Thyme in the Midwest, emerging regional chains that use “organic” and “locally-grown” as their buzzwords. According to our sister publication Supermarket News:

“Fresh Thyme, whose investors include the superstore chain Meijer, runs a store similar to Sunflower and Sprouts Farmers Market, focusing on a large selection and low prices on produce, along with a natural meat department, healthy deli foods to go, bakery goods, 400 bulk food bins, natural and organic groceries, dairy and frozen, as well as vitamins and body care products. The store has adopted the tagline ‘Healthy Food. Healthy Values.’”

The latest retailer to join this foray has been Wal-Mart Stores, which announced in early April that it will begin selling Wild Oats-branded pantry staples at prices 25 percent below those offered by competitors. The New York Times reported the discounting behemoth will try out the strategy at 2,000 locations first, before rolling it out through the rest of its U.S. portfolio. “At Walmart, internal company research found that 91 percent of customers said they would buy ‘affordable’ organic products if they were available, executives said,” the paper wrote.

Target, Wal-Mart’s main competitor, responded by promising to expand its existing organic selection.

All of this is beginning to take a toll on Whole Foods, as investors worry it will lose market share to cheaper-priced competitors. (For a while, Whole Foods was commonly known as Whole Paycheck.)

In spite of the chain’s posting a healthy same-store sales growth during the most recent quarter, at 4.5 percent, Whole Foods’ executives got slammed by Wall Street analysts this week for not doing enough to stave off competition. The price of its common shares went down by double-digits.

In response, Whole Foods Co-CEO Walter Robb sat down with CNN Money to talk about all the ways the company has been adjusting to the new world order and finding new ways to fight competitors. Among the strategies, Robb listed the following:

“Continue to grow. We have 115 leases in hand right now for excellent sites. If you look at Brooklyn most recently, we're going to continue to raise the level of experience and innovation that we bring to every store.

Price investments. Relative to several years ago, we're a whole lot better around value, and customers tell us that. We have a fundamental commitment to be more competitive. When you make price investments like this, as we did at end of the third quarter and early fourth quarter last year, there's a lag time to translate into higher sales.”

It’s true that Whole Foods has been targeting smaller markets and new types of customers for its brand, with stores like the ones in Detroit and Newark, not traditionally organic foods powerbases. It seems unfair to accuse the chain’s management of being complacent. Plus, just because other chains attempt to take on Whole Foods in the organic and gourmet foods categories, doesn't mean they will succeed, as Fairway's case has shown.

So what does everyone else think? Can Wal-Mart & Co. take down Whole Foods or is this all much ado about nothing?

[bchris02]

Wal-Mart will never be able to have a serious impact on Whole Foods because many Whole Foods shoppers shop there not only for the product but also the status. Wal-Mart has a stigma that will prevent it from ever making inroads with the upper market. The only thing that might work is if they open up a new brand of neighborhood markets that aren't Wal-Mart branded period.

[Dubya61]

Depite Wal-Mart being the dominant grocer in the metroplex, they only have 27.8% of the market, which is less than half of the marketshare they have in OKC.

Where are you seeing some statistics on Wal-Mart's market share in OKC?

[warreng88]

From Steve's chat:

11:09 Comment From Stan
I see more and more apartments being built...and thus the downtown population is also increasing. Any hope soon for a "real" grocery store to support that population growth?

11:10 Steve:
So by "real," you dismissing Native Roots? If you're asking is there a chance we will see a 25,000-square foot or larger grocery built in the greater downtown area, I can now tell you that the answer is a very likely "yes."

[Pete]

If something is going to happen of that size, it would have to be an Uptown Grocery.

Would make sense given their civic involvement on the NE side.

Perhaps a slightly scaled-down version.

[bchris02]

If something is going to happen of that size, it would have to be an Uptown Grocery.

Would make sense given their civic involvement on the NE side.

Perhaps a slightly scaled-down version.

That would be awesome. It would also be the death knell for the 18th and Classen Homeland.