CITY GROCERS NEWS:
New customers feed need for City Grocers to grow
Store will occupy 14,000 square feet in new location
St. Louis Business Journal
by Lisa R. Brown
Rance Baker knew when City Grocers opened that it would need to expand.
City Grocers, the only grocery store in downtown St. Louis, will more than double in size when it moves across the street to the Syndicate Trust Building in fall 2007.
At its new location on the ground floor at 915 Olive St., the full-service grocery store will have expanded services, including a pharmacy, an in-house butcher and a larger bakery. The new site also will feature cooking and wine classes.
City Grocers' staff of 32 employees will double with the move.
Since September 2004, City Grocers has leased 6,500 square feet on the ground floor of the Bell Lofts building at 920 Olive. "We knew when we opened two years ago, the store would need to grow and evolve as more people moved downtown," City rocers co-owner Rance Baker said.
After the move, the grocery store will occupy 14,000 square feet in the Syndicate Trust Building. The cost to move and buildout the new location will be less than $1 million, Baker said.
The Syndicate Trust and Bell Lofts buildings are owned by St. Louis-based LoftWorks, led by Craig Heller. Heller also is co-owner of City Grocers with Baker and Mark Leverenz, a senior consultant with Brown Smith Wallace LLC.
Partnering with Minneapolis-based Sherman Associates, LoftWorks is in the midst of an $85 million redevelopment of the upper floors of the Syndicate Trust Building into 102 condos and 70 apartments.
"Downtown St. Louis is experiencing an influx of property owners," said Brian Gorecki, Sherman Associates' project manager for the Syndicate Trust Building. "The transition of City Grocers to the first floor of the Syndicate benefits not only the residents of the Syndicate but gives all residents downtown expanded food choices within their neighborhood in one location."
For its first 15 months in business, City Grocers operated without making a profit, Baker said. In recent months, though, the grocery store has begun to operate in the black. Baker said one of the goals of opening City Grocers was to draw new residents downtown.
"When I started looking at downtown St. Louis three years ago, there was no one on the streets. It has exponentially grown since then," said Baker, a Denver resident and owner/president of Creative Food Concepts, a retail food consultancy.
When City Grocers opened, 60 percent of its business came from downtown workers coming in for lunch. Today more people are shopping for grocery items, and more than half of City Grocers' sales are made after 3 p.m., Baker said.
Baker said to meet increased demand, City Grocers will likely extend the grocery store's hours past 9 p.m. before the move. The new City Grocers location also will have a salad bar, a juice bar and an expanded wine selection.
lrbrown@bizjournals.com