Finding The Void In Grocery Stores
Using Commercial Real Estate Software To Find A Market Void
By Alexis Cortez
Published Oct 27, 2022
By Alexis Cortez
Published Oct 27, 2022
Although I currently live in Arizona, I will always be loyal to one grocery store: Mariano's. If you're unfamiliar, Mariano's is a grocery store chain owned by Kroger, that operates in the northwest suburbs of Chicago, as well as the city itself. While they seem similar to Whole Foods, they were the first to offer “specialties” like their in-house café, prepared food stations with pizza, wings, and sides, as well as the sit-down sushi bar.
When Mariano's popped up in 2010, it was laughable. At the height of the economic crisis, a “luxury” like fresh sushi or fancy Italian desserts was insane. But Mariano's had something different than the established Jewel Osco and Dominick's: Experience. Mariano's was the first grocery store in the area (that I can remember at least) with an on-site pharmacy. They also offered prepared meals with fresh ingredients, so working parents like mine could easily make homemade meals. As more people started to clue into the convenience offered at Mariano's, Dominick's quality seemed to fall, and thus, the beginning of the end.
Mariano's took over the area in just a few years, eventually causing Chicago's beloved grocer, Dominick's, to go out of business in 2013. My family, and many others, would go to the Dominick's on Quentin Rd. and Euclid Ave or the two Jewels on Palatine Rd for their weekly grocery haul or a last-minute trip. Today, Mariano's only competitor in the area (other than national chains like ALDI, Trader Joe's, and Walmart) is Jewel Osco. Location was - and always will be - the determining factor for success with neighborhood grocery stores like these.
Palatine, however, only has one Mariano's. The population of Palatine, IL is just under 70,000 people and is surrounded by other similarly sized towns, like Hoffman Estates at 55,000 people and Schaumburg at 75,000 people. Jewel Osco already has a decent presence in Palatine, with three stores on the main road. So how can Mariano's expand? Well, Dominick's on Quentin and Euclid is a great place to start. It sits in the middle of three different Jewel Oscos, but still far enough away from the only other Mariano's nearby that it wouldn't risk cannibalization.
Often in commercial real estate, location inspires loyalty. Grocery stores are one of the few retail categories that have guaranteed returning customers. With this proposed location (the former Dominick's on Quentin and Euclid!) Mariano's can start building a bigger customer base in this part of Palatine and surrounding areas. As the heatmap indicates, the neighborhoods around this proposed site are already going to the established Mariano's, rather than the three closer Jewel Oscos. Similarly, the neighborhoods near the west Jewel are going to Mariano's as well, even though they are just across the street from a grocery store.
While I might be Mariano's most dedicated fan, based on this data, I can rest assured knowing that I'm not the only one. If - and hopefully when - Mariano's decides to expand more into Palatine, they will have a lot of opportunities to do so. There is a whole section of Palatine, as well as the surrounding towns, that needs more access to the services Mariano's can provide. •
Last Modified Oct 27, 2022
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