Question regarding an article.... (Detroit, Flint: middle-class, real estate, insurance)

[Alaskapat528]

Hunger Hits Detroit's Middle Class - WalletPop

The above AOL link talks about no supermarkets in Detroit. As an outsider I am curious as to if it is as bad as this article states. And if it is, what is the Mayor of Detroit or the Governor of the State doing about this?

[jeanniepep]

The supermarket situation is indeed grim - I saw a news story today about a very small company that is now driving around some downtown neighborhoods selling fruits & vegetables out of a van because people don't really have access to a store that sells them.

I understand Eastern Market is pretty sweet, but I haven't been there since I was a kid. The unfortunate thing about Detroit is that not only are there no conveniently-located supermarkets, but no convenient public transit either. So if you don't have reliable transportation, forget it.

As for what the mayor & governor are doing about it, I have no idea. That has not been discussed on the news to my recollection. Maybe they're working really hard on some great plan behind the scenes, but I doubt it.

[snoopygirlmi]

The problem is that it takes 7 years for a store owner to go through the permit process w/the city -
One of the largest store chains, Meijer, just announced that they were building a store at 8 and Woodward (north end of town) in a couple of years. However, the question that is on people's mind is (or at least some people's)- will it really get build and how long will it stay in business after it opens.

It's a huge deal and I know that they want it to be successful, but I'm sure a lot of people are taking a wait and see attitude.

For instance, a couple of years ago they were excited that a new CVS and Borders were going in downtown - I think one or both of them is closed now.

I wouldn't be surprised in the new mayor/the governor helped in some small way to bring this deal about. However, you need to realize that the new mayor has only been in there for maybe 2 months (and this is after the Kwame Kilpartrick resignation and an interm mayor-so they are on their 3 mayor in the past year) and politically, it would be hard for the governor to do a lot unless it was requested because the city of Detroit doesn't like it when the suburbs or out-staters (anywhere outside of detroit metro) get involved with their politics or running stuff down there. The governor has an independent financial manager running the Detroit schools right now - very touchy situation between the city and the state and the school union....

So like, jeanniepep said, I doubt the mayor/governor did much, if anything to bring the deal about.

[Cliffie]

It can only be increasing poverty in the city to A) have only tiny convenience stores that necessarily sell a smaller variety at higher prices because they can't buy in bulk and B) have fewer places like large grocery stores to work in, which leaves people even less able to afford the groceries they need.

Stupid! Stupid! Stupid!

[zthatzmanz28]

Wonder why Meijer built on the border or Detroit and not somewhere like Woodward and 6 Mile area where there was a Farmer Jacks?

Target also built on the border (8 Mile area) and I believe it was closing or considered closing due to a huge loss in profit through theft(?)

[jeanniepep]

Woodward & 8 Mile is basically just dipping a toe in the water...building stores deeper into the city is a huge risk for a retailer, and I'm sure the insurance rates reflect that. Plus, I'm sure there's a hope that the "Metro Detroiters" might also do a little shopping at Woodward & 8 thus increasing the customer base.

I live south of 9 Mile in Ferndale and while I generally don't hang out a lot near 8 Mile, I would definitely try shopping at a Meijer in that location. If it were at 6 Mile, I wouldn't even slow down - or preferably not drive by it at all. That's Highland Park! While I agree they need a decent grocery store too, I'm scared to death of that neighborhood.

[chiroptera]

I'm in Flint and while I don't live in a really bad neighborhood, my closest grocery store (Kroger on Davison and Franklin) is a sorry store, serving a lot of the low-income folks. In marginal neighborhoods, according to the manager of that store, they run at a loss because of theft. There's a security guard there, but both employees and the guard are instructed not to stop people who walk out without paying for things. And that happens a lot.

So I imagine retailers are unwilling to open and operate grocery stores in low income/high crime neighborhoods. I've been to several (like Landmark on the north side, that's a scary, dirty store) and they're all pretty sad places. Disorganized shelves, not too clean, poorer selection, busted carts - assuming you can even find a cart, fewer open registers and slower lines.

Mostly I drive a few miles or stop on the way to & from work at nicer stores.

So it's a real shame that so many people in poor neighborhoods - often without vehicles or decent public transportation - don't have access to grocery stores and have to rely on the little convenience stores. But grocery chains are in business to make a profit, not to take care of under-served neighborhoods. So it's a sort of catch-22.

Originally Posted by jeanniepep

Woodward & 8 Mile is basically just dipping a toe in the water...building stores deeper into the city is a huge risk for a retailer, and I'm sure the insurance rates reflect that. Plus, I'm sure there's a hope that the "Metro Detroiters" might also do a little shopping at Woodward & 8 thus increasing the customer base.

I live south of 9 Mile in Ferndale and while I generally don't hang out a lot near 8 Mile, I would definitely try shopping at a Meijer in that location. If it were at 6 Mile, I wouldn't even slow down - or preferably not drive by it at all. That's Highland Park! While I agree they need a decent grocery store too, I'm scared to death of that neighborhood.

[Wingnatic]

That Target on 8 Mile has been long gone . I think the one your thinking of was the one in the Bel-Air shopping center on 8 Mile east of Van Dyke . Also gone from that shopping center is Toys-R-Us , Farmer Jacks (gone long before the rest of them) a large home improvement chain , I think it was Home Depot , all gone way before the economy tanked . I'm not sure whats in the shopping center now , but there can't be too many stores left .

[Coldjensens]

This is true in a lot of cities or at least in poverty striken portions of cities. Either there are few grocery stores, or the ones that exist charge a lot more than they charge in the suburbs. The simple fact is that it costs a lot more to operate a grocery in the City than in the suburbs. Taxes are higher; insurance costs more; in most cases, real estate costs more; transportation usually costs more; the store prices have to account for a greater level of theft/pilfering etc. Ask a chain grocer. There a lot of factors that increase the cost in a typical city. Add to that the fact that people in the City often have less money to spend than people in the suburbs and it is simply not worth it for a grocer to put a store in a city unless they can charge substantially higher prices and still get customers. In most cases, when the grocers charge enough to make it worth their while, the customers just drive out to the suburbs to buy the same products at lower prices. Since the customers are already driving to the suburbs to shop, then why not just put your store there to begin with?

In Detroit the gorcers also have to deal with poor city services including police, snow removal, and other essential services. Detroit also has the City income tax which makes it harder to attract and keep employees unless they are paid more.

It just is not worth it for most grocers. Perhaps Meijers thinks that if they are the only game in town, they will get enough volume to allow them to keep their prices down despite the increased costs.

[City of Motor]

There are plans for a 200,000 sq. ft Meijer in Detroit's North End, on Woodward.
Finally, another famous chain in Detroit!