Consumers benefitting from additional food store competition in metro Detroit area

By Edward Deeb, Founder
Michigan Food and Beverage Assn.
Eastern Market Corporation

DETROIT, MI - Back in the 1960’s retail food store operators were eager to compete in the Detroit area. At the time, there were six major chain stores servicing the area: A&P, Kroger, Farmer Jack, Chatham, Great Scott! And Meijer.

Food prices then in the Detroit area were considered the lowest in the nation. Retail food-profits averaged one-cent on the dollar.

The stiff competition then was called “battle for the buck” by those in the food distribution industry.

Majority of food markets in the central city were run by independent store operators, most of them were of Arabic or Chaldean heritage. The stores were mainly considered convenience or party stores, much smaller in size than the much larger chain stores.

After the 1967 rioting most of the food chains left Detroit due to the diminishing population and reduced customer traffic, and relocated in the more populated suburban areas.

Today, some 80 major independent store operators in the Detroit area have grown, including ALDI’s Markets, rivaling larger chain store units especially in Detroit proper. These were retailers who did not have the financing earlier to enlarge their stores. Today however they run much larger stores with vastly expanded product choices and are more competitive, and who were willing to take the calculated risk to succeed. Their focus today is to provide more access to fresh food, and to help eliminate hunger in the area.

In the past Detroit was considered a “food desert,” for lack of full-line food stores and farmers markets to give consumers larger and better food and nutritional choices. While Detroit’s Eastern Market is the largest farmers market in the area, and one of the largest in the nation, today there are more than 50 farmers markets in various cities and communities in Michigan providing even more access to healthy fruits and vegetables in addition to area supermarkets.

More specialty food stores and bakeries are opening in the area such as Avalon Breads and Hacienda Mexican Foods. Food trucks are also appearing in area neighborhoods, thus providing additional convenience for shoppers unable to drive to area markets.

In addition to the larger independent store operators, larger supermarket chains are starting to open stores in Detroit once again, which will provide more food choices to a larger population. For example, Whole Foods will open a new store June 5th adjacent to Detroit’s medical center and Wayne State University, and Meijer is building a new unit on Eight Mile and Woodward near the old State Fair grounds property.

Target, Inc. announced recently it is expanding nine metro Detroit stores to include groceries. Independent food store operators Hiller’s and Busch’s are also expanding.

What goes around comes around all over again. The vibrancy of the early Sixties is coming back to the Detroit area. This means that our area is beginning to revitalize itself and offer more perks to attract shoppers..

You may have noticed that in addition to supermarkets and independent stores, more competition is coming from drug stores and gas stations. Gas station operators, who chose not to certify their auto repair business in the State of Michigan, converted their service area to stock and sell food, beverages and convenience goods.

Increased retail competition provides more opportunity for shoppers in the Detroit area. It is an on-going food store trend benefitting grocery shoppers. More and more people are beginning to take advantage of this current bonanza.

Edward Deeb is founder, of the Michigan Food and Beverage Association and Eastern Market Merchants Assn. He can be reached by phone (586) 393-8801or e-mail him at edeeb@miyouthfoundation.org