Additionally, Aldi has made a $1.6 billion investment to update 1,300 of its 1,600 stores across the United States, including locations in Michigan, to better compete with the arrival of new German contender, Lidl. The newly remodeled Aldi stores will feature a modernized design with open ceilings, natural lighting, more eco-friendly materials, and plenty of produce offerings.
Facing the competition
As Meijer, Kroger, and others are ramping up expansion efforts, one formerly popular retailer is treading water. Whole Foods Market, headquartered in Austin, TX, currently has seven stores in the metro Detroit area. The retailer is facing a possible buyout by Boise, ID-based national grocer Albertsons (owner of 18 grocery banners in 33 states, including Jewel-Osco, Vons, Ami-gos, Tom Thumb, Safeway, and others), amid falling sales and share value.
Stiff competition from rival organic grocers—including Sprouts Farmers Market and Natural Grocers, as well as traditional retailers like Walmart and Kroger that continue to expand organic offerings—have put Whole Foods and its organic identity at risk.
“The national chains like Kroger and Meijer are still going strong,” agrees Artesian Farms’ Adams. “As far as the city of Detroit, Meijer is the only big brand that has two stores in the city. Whole Foods is also in the city, and we market to that store.”
Adams explains that Artesian Farms is not quite big enough to market to the larger retailers yet. “Our niche is the smaller regional customers,” he says, adding that the grower’s largest customer is Bush’s—an independent supermarket chain based in Ann Arbor, MI. Bush’s currently has 17 stores across the state, including six in the metro Detroit area.
Mixed blessings
While many of these metro Detroit retailers are thriving, some produce professionals believe the market could be reaching saturation. “A few years ago, Detroit was glad to get a few big names, but I don’t know if there’s enough business to support all the stores,” points out Ben B. Schwartz’s Stone.
On the plus side, though, if Detroit continues to see a resurgence, Stone believes retailers in the most popular areas will reap the benefits. “We’re just beginning to see people moving back into Detroit, and the demand for retail is driven by that,” he says. “I expect to see more successful retail establishments opening because the neighborhoods are growing again in certain areas.”
Stumbling Blocks
While business is booming for Detroit wholesalers, economic growth can often be a double-edged sword.
