Even as the produce scene continues to boom, the state of retailers throughout Philadelphia—and the country, for that matter—seems less secure. Or not. It depends on who you talk to.
Some wholesalers are gung-ho about retail growth; others project a downward trend after several years of frantic and often erratic expansion.
In Philadelphia, big-name retailers opening locations over the past couple of years include German chain Aldi, with nine locations in the metro area; its fellow German competitor, Lidl; Sprouts Farmers Market; Giant Food Stores; Fresh Grocer, Whole Foods; and Trader Joe’s, to name a few.
And while major retailers have slowed down somewhat, any slack is being picked up by independent grocers, regional or local chains, and smaller-format stores like Giant’s Heirloom Market, which are designed to appeal specifically to young, urban dwellers, including students from nearby universities.
There are now two locations in Philadelphia with more on the way, all featuring plenty of specialty items and an extensive collection of grab-and-go meal solutions.
According to Mike Maxwell, president of longtime receiver and repacker Procacci Bros. Sales Corp. BB #:104174, the independent grocery store scene is not just strong but expanding.
Many “entrepreneurs and independents are opening up to address the needs of neighborhoods,” he says. “The Interstate 95 corridor is flourishing.”
Mark Levin, CEO of M. Levin & Company, Inc., BB #:104129 agrees and believes retail in Philadelphia is growing, not slowing. Not only is the city a prime tourist destination—breaking visitor records for the last seven years according to Philadelphia magazine, but restaurants and grocery chains continue to open new locations across the extensive area.
A recent QSR Magazine article on Philadelphia’s fast casual sector backs this up, touting ten emerging hot spots. Nearly all of these creative endeavors cater to consumers looking for fresh, healthy food. Among the selected restaurants were the aptly named Real Food Eatery, hummus-themed Dizengoof, Farmer’s Keep, vegan HipCityVeg, Bryn+Dane’s for smoothies and juice blends, and plant-based Honeygrow.
Grocers large and small are also upping convenience to compete with restaurants and each other. Levin points to online ordering as an increasingly popular way to avoid lines at the register.
Numbers support this supposition, with nearly one-third of all grocery shoppers having ordered online in the past year, according to a study by Valassis, a marketing technology firm. This is particularly true for urban residents, who tend to order online more than their suburban counterparts.
“Online delivery has really taken off with retailers in Philadelphia,” confirms Levin. “As time goes on, there may be fewer brick-and-mortar stores as delivery services become more prevalent.”
This is a multi-part spotlight feature on the Philadelphia produce market adapted from the October 2019 issue of Produce Blueprints.
