The possibility of a fifth Walmart Neighborhood Market in Springfield could mean the end for Price Cutter's downtown Bistro Market, the regional grocery chain's top executive said today.
Addressing more than 100 residents and downtown business owners during a news conference outside of the Bistro Market, Price Cutter parent-company Pyramid Foods President and CEO Erick Taylor said the three-year-old Bistro Market netted $3 million in 2012 revenues, down from annual projections of $3.5 million. He also said the store lost money last year.
Taylor said while the South Avenue and Walnut Street location draws a large customer base, operations costs of running a bar and restaurant along with a grocery store have cut into store revenues.
“We are still trying to learn that business. We have to learn how to control our food costs and our labor costs. That is what is making that location not profitable,” Taylor said. “But as I am trying to fix these internal issues and we have more competition coming in, I’m concerned for our store and other businesses in the area."
Taylor called the conference "a save downtown meeting."
"This is really about all the businesses downtown - the photo shops, the pharmacies and all the shops downtown - that could be affected by a big-box store coming in," he said.
Wal-Mart Stores Inc. is seeking Springfield City Council approval on a plan to rezone about 6 acres at 444 W. Grand St. and Normal Street residences to a general retail district. On Jan. 24, the Springfield Planning and Zoning Commission supported the rezoning request with a 5-2 vote.
P&Z originally rejected Wal-Mart's proposal in December, taking issue with the megaretailer's request for access to Normal Street. The issue was scheduled to go before council Jan. 14, but Wal-Mart officials chose instead to bring it back to P&Z, with revisions, according to
Springfield Business Journal archives.
Taylor said he welcomed competition in Springfield but felt he needed to stand up for Springfield’s small-business community and urged City Council to listen to the voices of the people.
“These councilmen are voted by the people. So far, I have heard no people standing up and saying we want another Walmart at that location,” Taylor said, adding he believes it’s time for council to stop being politically correct and do the right thing for downtown.
Taylor outlined four points of contention with the proposed Wal-Mart plan for Grand Street and Campbell Avenue, saying first and foremost it was a zoning and safety issue for residents who might cross the four-lane street to shop.
He also cited lack of economic impact to the area, saying the store would not create jobs or add revenue to the city, but shift existing funds.
“We are not creating more consumers. We are just shifting them to a new store,” he said.
Taylor detailed Price Cutter’s commitment to the community, saying the 56-store Springfield-based chain has donated more than $10 million to 43 charities during the past 12 years.
Lastly, Taylor asked city leaders what sort of downtown they wanted, asking if vacant buildings and “for rent” signs were in downtown Springfield’s future.
“I’m not saying Wal-Mart is trying to destroy current downtown at all,” he said. “I’m just saying if you destroy the small business in the downtown, you get vacant buildings.”
If council approves the plan, Taylor said the company also would re-evaluate the sustainability of the Price Cutter supermarket at Campbell Avenue and Sunshine Street, but he said he felt the potential Walmart Neighborhood Market wouldn’t have much effect on the Price Cutter at Grand Street and Kansas Expressway.
Council is slated to hear public comment on the issue during its Feb. 11 meeting.
