Tuesday, September 18, 2007

Grocery Shopping Competition on Roosevelt Island


Will the increased competition caused by the arrival of Duane Reade improve service and pricing at the local Roosevelt Island Gristedes? Residents now have greater choices for their grocery shopping on Roosevelt Island being able to choose from among the new Duane Reade, Gristedes, Deli on Main Street, off-Island retailers such as the Food Emporium on First Avenue, Trade Fair on 36th Avenue, Costco on Vernon B'lvd as well as online grocery stores such as Fresh Direct, Bread'nBie and Gristedes online.
According to a recent NY Times article about the planned closing of several Gristedes stores:

the number of Gristedes stores has dropped from 78 a decade ago to 39 today (35 stores are in Manhattan), as a once familiar New York City name continues to recede. Most recently, the Gristedes at Central Park West and 62nd Street shut.
And:
...“The problem in New York City is you’re going to be left with no supermarkets” because of the rise in basic costs, like rent, he said.

Gourmet stores can simply charge more, he said, but traditional markets get excoriated for price increases. “Shopping at Whole Foods goes hand in hand with paying $7,000 rent for a two-bedroom apartment.”
More:
...“People complain supermarkets are too expensive,” Mr. Catsimatidis said. “You have to laugh. We’re not making the bottom line, and people complain we’re too expensive.”

The ideal size for a city supermarket like Gristedes, he said, is 9,000 to 12,000 square feet, big enough to have wide selection but not so big as to have a crippling rent bill. (Gristedes stores range from about 4,000 to about 20,000 square feet.)