Shawn MacDonald, Pitney Bowes Business Insight
Lately it has been fashionable for national media outlets to spotlight the failures that have been plaguing Detroit for the past several decades and administrations. In June of last year, The Wall Street Journal Online edition published an article highlighting the mass exodus by national retailers (Retailers Head for Exits in Detroit – WSJ.com). Then, Time Magazine established Assignment: Detroit, a year-long endeavor where several journalists (including Detroit native Daniel Okrent) live in an east side home and write about everyday life in the beleaguered city (The Detroit Blog – One year. One city. Endless opportunities. – TIME.com). More recently, Time’s sister online publication Life.com chronicled Detroit’s demise through a series of photographs (Ragged Glory) that depicts the extent of the city’s urban decay (Detroit: Still Life – Photo Gallery – LIFE).
Now, I am not saying that Detroit’s struggles should not be the focus of national media scrutiny. In addition to the decline of the American automobile industry, much of the city’s plight can be linked to past administrations hard-line stances that they can go it alone. That is, without the help of the suburban civic leaders who have been more than willing to come to the Detroit’s aid over the years. Furthermore, an archaic tax code has made it increasingly difficult for businesses to prosper, all to the detriment of the city’s residents.
When Hudson’s flagship store on Woodward Avenue closed its doors in the 1980’s, Detroit became the only major city in the United States without a department store within its city limits. Now, the city owns another distinction – the only major city without a national or regional supermarket chain. In 2006, Farmer Jack was sold piecemeal to several buyers, ending the chain’s long reign within southeast Michigan. In addition to Farmer Jack, the city was once home to many banners such as Kroger, A&P, Wrigley, Great Scott!, Packer, and Chatham. Today, only Kroger remains, although none of it supermarkets are within the city.
However, Detroit is not alone in its struggles to offer residents quality supermarket options. Of the 15 poorest cities (based on the percentage of residents living in poverty), nine are under-served (less than 2.5 square feet of space per resident) by supermarket chains with at least 25 stores, as the following graph depicts:
Conversely, among the Top 25 largest US cities, ten are rife with supermarket chains having more than 3 square feet of chain supermarket space per resident. Of those ten cities, the following six have more than have more than 4 square feet per resident and may be considered “over-served”: Phoenix, AZ; Columbus, OH; Fort Worth, TX; Indianapolis, IN; Austin, TX; and Jacksonville, FL.
True, poverty levels in these six cities are significantly lower which may account for a more inflated ratio. However, it is not as though the poorer cities have significantly less demand for grocery-related items. In fact, on average, demand for grocery-related items in the “Under-served Nine” is 90% of the “Over-served Six” level despite having 86% less chain supermarket space. Can you say “untapped potential”?
So, how does the playing field become leveled?
Well, to the rescue here comes… drum roll please…The United States Government!! Now hold on, this is a good thing. As part of her initiative to combat childhood obesity, First Lady Michele Obama is spearheading a campaign called Healthy Food Financing Initiative, a $400 million effort to end “food deserts” in some of the nation’s largest and poorest cities. The program will be modeled after a Pennsylvania initiative that has produced more than 80 supermarkets in the past five years, where nearly 400,000 people now have access to better food choices while supplying about 5,000 jobs.
To underscore the administration’s commitment to this cause, Jeff Brown, owner of the 10-store Brown’s Super Stores (a ShopRite affiliate), was not only recognized in the President Obama’s State of the Union address, he was also a guest of Mrs. Obama. A fourth-generation grocer, Mr. Brown has been very active in Pennyslyvania’s Fresh Food Initiative. Please reference this link for more information: Success in Pennsylvania Stirs Hope for Food Deserts
The idea is catching on! New York, Louisiana, Illinois, Colorado, and New Jersey have all launched similar programs. So far, independent supermarkets have embraced these programs while reaction among chains has been lukewarm. Given the tremendous untapped potential combined with government incentives, this soon may change.
Despite all of the rancor and partisanship in Washington these days, this initiative seems to have bipartisan support. And, as long as there are no strings attached (like the auto and banking bailouts), Democrats and Republicans should be eager to “bring home the bacon” to food deserts within their districts. The jobs these supermarkets provide will be the “icing on the cake”, which would be a tasty dessert!!
