DONE DEAL: Lease Signed for DeLano’s To Come To West Lake

DeLano’s Market Targets Thanksgiving Opening Date –

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On July 8, it was announced that a deal had been reached to bring the DeLano’s Market to the long vacant grocery store site in West Lake Shopping Center, a site that had been vacant since May of 2006.  At that time, though an agreement was in placed, the lease had not been formally signed.  And while expected to be a formality, it has taken over a month and a half for the agreement to finally be signed.

On Monday that agreement was officially signed according to Harley DeLano, the company’s CEO.

 

“That’s correct we signed the agreement on Monday afternoon.  It’s a ten year term with two five year options after that.”

The DeLanos are targeting the week of Thanksgiving for a possible opening on the store.

“That’s a pretty aggressive target, so depending upon the permits and construction time, it may take a bit longer than that.  But we’d like to be open before the holidays are through.”

What is needed between now and then is a complete remodel of the existing site which was stripped down and laid bare for three years.  But according to Mr. DeLano, the owner has already began construction with the blue print that has been provided him.

Mr. DeLano told the Vanguard that they intend to create a supermarket for West Davis that is small but competitive.

“My family has been in the supermarket business for many years.  We have stores currently that we call family markets.  They are a bit smaller than most competitive stores.  We have complete food service that is home meal replacement.  We’ll have a full deli with a bakery as well as a fresh fish department.  Our specialty certainly is produce.  We will try to entice the local growers to be in our stores.”

He continued:

“We’re probably a little bit on the small side for competition, as you know the city of Davis has a lot of competition as well as more coming.  But we feel that the site has been vacant for a long time, and that our family will fill that niche.”

Mr. Delano also touts his environmental credentials which will fit right in with the rest of Davis.

“We’re pretty green as far as the environment goes.”

He continued:

“I think every once in awhile, someone refers to me as a tree hugger.  We try not to damage the environment.  We’d like to leave it better than we came.  You’ll find that in our selection of merchandise, we also make it a point to bring in merchandise that our customers want that possibly we’ve overlooked.”

Organic and natural food are part of the specialty items that DeLano’s provide.

“We operate our stores now in the city of San Francisco and the county of Marin, both of those areas are very desirous of having organic and natural food.  We pretty much do, for instance, when I went back into the business I told my family because I raised cattle that I wouldn’t sell milk that had RDST added to the cows.  It’s certainly approved by the FDA and I’m not arguing that point, I just think it’s bad for the cows not the consumer.”

Many people while expressing excitement and hope that a new grocer is coming to West Lake, have also expressed concern that location may not be conducive to a profitable grocery store.  They argue that three grocers have already failed in this location.  While people who have a good understanding of the particulars of the situation argue otherwise, it is definitely an overriding concern.

Mr. DeLano believes in his model and believes the can be successful.

“We think it will be a success unless we do something wrong and don’t intend to do that.  So hopefully we’ll be here for a long time.”

Part of that success is based on the community understanding the importance of a grocer in West Davis.

“I’m in my 70s and I learned long ago that you probably don’t appreciate a thing nearly as much as when it’s gone.  The area’s had a supermarket void at least in the immediate area surrounding it.”

He thinks their model will work well for this neighborhood.

“I don’t know the people that failed there in the past.  The site was vacant when we first showed our interest in it.  I have heard that there were possibly some challenges for the operators.  Again what we prefer to do is operates the store from a personal touch.  My son is the president of our company.  He’ll probably be on the site.  We’re actually putting offices in the same center so that we make sure that the store is a success.”

Moreover,

“If you ask, we’ll find it and we’ll get it.  We feel that’s our business and our business is fairly simple.  Find out what our customer wants, try to supply it at a price they thinks of value, and try to stay for a long time in the areas that we go into.”

And while the size of the store is small, Mr. DeLano thinks it will work for this location.

“This store is 11,000 and some change square feet.  It’s about half the size it was to start with.  We operate seven other sites in San Francisco–two of those stores are actually smaller than the store we’re putting in here.   Our average size store is about 15,000 square feet.  We think this is the proper size to actually produce a profit for our family and produce the proper amount of sales for the area.”

Another big concern is that while DeLano’s is a nice store, there are those who think it will be too expensive and will have trouble competing with Safeway and Nugget that will have an economy of scale advantage.  Again, Mr. DeLano does not believe that will be a problem.

“We’ve looked at some of the other stores but we have not if you will done a complete price check and so on, we think we’ll be competitively priced.  We’re actually part of the IGA, which is the International Grocers Alliance, so we’re able to buy a little better than we would be on the open market for the size of our company.  We’re not Safeway certainly but on the other hand we do have the power of the IGA behind us, that’s why we’re part of that organization.  We think that you’ll find that we will be competitively priced.  We’ll be checking the numbers and checking it twice and be competitively prices and still have a viable grocery store.”

Harley DeLano said that they intend to meet with the community to find out what the community needs are.

“We’ve been working with Eric Nelson of DANG.  We told Eric that as soon as we signed we would be prepared to meet with anyone that he thought we should.  We have talked to the city.  We have talked with Mr. Jenkins who’s with UC.  We perceive to have some meetings with the community and find out exactly what the community expects of their grocery store and tell them what we can go and what we can’t do.”

They will also be creating an outdoor area that will work well for people wishing to eat on the premises.  Mr. DeLano said that is something that the owner is already in the process of creating and it is a feature that exists at their other sites as well.

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Brief Commentary

As one who has lived next to this location for a number of years, I believe that a good and well-run store can be successful.  Ray’s and later Food Fair often had empty store shelves, old produce, and high prices.  There was a limited deli, no real bakery, and nothing to induce people to come.  A well-run store with good fresh produce can lure people from all over West Davis who do not wish to drive to Safeway or Nugget.  A good selection of ready-made foods can serve the community well for a quick meal.  And having a good full service store will enable people who wish to avoid driving across town to have a viable option.

The key will be how well the store is run, the DeLano’s obviously have good experience running smaller stores and know how to provide a good product.  Moreover they seem committed to doing so.  This is a great opportunity to revive an underutilized shopping center in Davis and help out the economy.

—David M. Greenwald reporting

Author

  • David Greenwald

    Greenwald is the founder, editor, and executive director of the Davis Vanguard. He founded the Vanguard in 2006. David Greenwald moved to Davis in 1996 to attend Graduate School at UC Davis in Political Science. He lives in South Davis with his wife Cecilia Escamilla Greenwald and three children.

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Categories:

Land Use/Open Space

23 comments

  1. I’m looking forward to this new grocery story in West Davis. It is sorely needed. But it is going to take neighborhood support, which I do believe it will have. I know I will be shopping there. Welcome Delano’s!!! Can’t wait for you to arrive!!!

  2. I am so glad this market is coming to West Davis. That area needs a local market. The residents nearby and the other tenants in that shopping center will benefit from this. Welcome Delano’s!

  3. [quote]Ray’s and later Food Fair often had empty store shelves, old produce, and high prices. There was a limited deli, no real bakery, and nothing to induce people to come.[/quote]Am I wrong to think that the DeLano’s will be [i]smaller[/i]than Ray’s was? I never shopped at that store after Ray’s failed. But I thought Ray’s was a decent operator. I cannot imagine that DeLano’s, in less space, will offer more than Ray’s did. And as far as prices go, I would be surprised if DeLano’s competes on that basis. I’ve never been to one of their Bay Area stores. (I’ve seen the one in Tiburon.) My guess is they will compete more on convenience and quality. [quote] A well-run store with good fresh produce can lure people from all over West Davis who do not wish to drive to Safeway or Nugget. [/quote] I agree, up to a point. The problem is that most people in West Davis will do large amounts of their grocery shopping at Safeway, other large stores in Davis, or huge discout warehouses like Costco. (Am I wrong to recall reading that the Greenwalds of Lake Blvd. are Costco shoppers?) Those folks want DeLano’s to supplement their other shopping, to have a place to buy milk or a few pieces of fruit when they run out of those items in between their long drives to the bigger stores. I don’t blame the shoppers. However, that behavior raises the ultimate question: can a grocer at Westlake surivive and thrive by simply being the “in between” provider?

  4. Congratulations to the citizens of West Davis who took things into their own hands and found a grocer that is perfect fit for West Davis.

    I believe this grocery store will become a Davis institution, much as the Coop is.

  5. Hey Rich . . . love your constant positive view . . . which is most always distorted or limited by the distance from which you make your observations. Like I’ve said before, you need to get out in the trenches and get the soles of your shoes dirty once in awhile.

    I don’t think Harley DeLano with his 55 years of experience in the grocery business would be risking a considerable amount of money on building a store in Davis if he didn’t have a pretty good idea of what he needs to do to be successful in this location. He competes with “the other large stores” in San Francisco and Marin counties (they have Costco, Walmart, and Target too) and does just fine! Most of us don’t want a ten gallon container of mayo or a 30lb bag of rice from Costco, Walmart is the evil empire, and Safeway sure isn’t a one stop source for groceries!

    Oh, and about the coffee bet we had going about never getting a grocery to come to Westlake . . . I take mine with a little soy. You can pick the place, day and time.

  6. I noticed on the Enterprise site, they now have this item as an update, looks like they discovered this news from the Vanguard.
    [url]
    http://www.davisenterprise.com/story.php?id=133.0%5B/url%5D
    [quote]
    DeLano Retail Partners has signed a 10-year lease and plan to open a full-service market at Westlake Plaza by Thanksgiving, a representative of the shopping center confirmed this morning.

    Residents of the West Davis community have been pushing for a neighborhood grocer to replace Food Fair ever since the store shuttered three years ago. The owners of Westlake Plaza had difficulty finding a replacement that met the demands of West Davis’ estimated 13,000 residents for a full-service market and the city’s minimum size requirement for food stores.

    Without an anchor tenant, the businesses at Westlake Plaza also suffered, as shoppers were diverted to grocery stores at other centers in town.

    At a July 7 Davis City Council meeting, Westlake Plaza co-owner Farrokh Hossenyoun delivered the good news that DeLano Market was interested in opening at the center. The council enthusiastically supported the collaboration and restated its dedication to having conveniently located neighborhood grocery stores throughout Davis.

    (For the complete story, see Sunday’s Enterprise) [/quote]

  7. Good work Dang, David and others that worked this project. You all deserve a pat on the back. We might have been helped by the economy since the grocery market is one bright spot when people stop dining out and taking as many vacations. However, it was the work of our community local-store activists that kept it moving along.

    In any case, I think DeLanos will attract plenty of shoppers from West Davis as well as all the rural shoppers between Davis and Dixon, Winters and Woodland. I’ve shopped at Delanos in the Bay Area a few times. Think mini Nugget. As long as the produce is fresh and plentiful; the meat and fish counter is upscale; a good selection of baked goods, wine and cheese are happening; they have a little Trader Joe-esk selection of high quality processed and ready to prepare foods; and the service is attentive and friendly… if they build it, stock it and serve us well, we will keep coming.

  8. [quote]your constant positive view . . . is most always distorted or limited by the distance from which you make your observations.[/quote] Whoa! I’ve lived in West Davis longer than there was a Lake Blvd. I remember back when the tractors were digging that hole in the mud. I have no idea who you are, other than you are someone afraid to post under your own name. [quote] Like I’ve said before, you need to get out in the trenches and get the soles of your shoes dirty once in awhile. [/quote] To the best of my knowledge, you actually don’t live in Davis and have never posted on this blog, before. For all I know, you live in Nevada. [quote] I don’t think Harley DeLano with his 55 years of experience in the grocery business would be risking a considerable amount of money on building a store in Davis if he didn’t have a pretty good idea of what he needs to do to be successful in this location. [/quote] I assume that is correct. That does not contradict anything I posted above. However, Ray’s has been successful in the food business for a long time, as well. [quote] Most of us don’t want a ten gallon container of mayo or a 30lb bag of rice from Costco [/quote] I don’t know how true that is. I don’t belong to Costco. I simply mentioned it because I recall David Greenwald saying he is a fan of that store. Perhaps he did not write that on this blog — I don’t recall. He may have just told me that elsewhere. [quote]Safeway sure isn’t a one stop source for groceries! [/quote] Why not? [quote]Oh, and about the coffee bet we had going about never getting a grocery to come to Westlake . . . I take mine with a little soy. You can pick the place, day and time. [/quote] Sorry, I did not make any bets with pseudononymous people who live in Nevada and throw stones at real people who live in West Davis.

  9. PS my reference to Costco was probably in reference to their employees pay and benefits which are living wage with full health coverage as opposed to Target and Wal Mart. I don’t buy my groceries there.

  10. About Ray’s: you can see all 50 places they continue to thrive on their website ([url]http://www.ckmarket.com/[/url]). DeLano’s is a much smaller chain (7 stores). That might suggest they will manage their operation here better.

  11. Rich: At the time Ray’s closed, they told me that their reason for closing was that almost all of their stores were well to the north and it was too expensive for them to ship products. They had allowed the store to significantly decline in the last year or two of existence. They then sold it to Food Fair who was a Bay Area chain, but for whatever reason, and I have heard numerous speculation about it, they never put the money or resources into making it work.

  12. For the record, David, I very much hope DeLano’s succeeds. Part of that will be the managment of the store. As you and others have said, they need to have quality products the customers want. However, another part of the equation is the shopping behavior of the folks who live between Road 98 and the old US 99W, aka Hwy 113. If most of them make DeLano’s their primary grocer, then the store will succeed. If most only buy “in between shopping trip” items there, it will be tough for DeLano’s.

    I suggest, now that West Village is getting started, that you begin a push to have Lake Blvd or Arlington Bld connect with West Village through Russell. That would provide a larger home customer base for DeLano’s.

  13. [quote]However, another part of the equation is the shopping behavior of the folks who live between Road 98 and the old US 99W, aka Hwy 113.[/quote]
    If Delano’s does the things that all grocers need to do to attract and retain customers, there are plenty of people west of 113 to support the business model. If they don’t, it won’t make any difference. I think they will and it will be fine.

    Look at a map and note the size of the area. Don’t forget about some North Davis Meadows residents that live about 2 miles north. There are quite a few country homes between Winters and Davis, and Covell gets a bit of drive through commuting traffic that would make the small detour to grab some groceries on the way home. Also, since Safeway vacated the University mall, for some of the Russell residents just east of 113, Delano’s will start to become another alternative from driving down Sycamore or Anderson to shop at Safeway or Albertsons.

    Road or no road connecting it directly to West Davis (I vote no road for now) University Village will provide some shoppers too… because there is nothing else close unless they jump on I-80 to Mace or Dixon. A bike path should do just fine.

  14. Once Delano’s thrives, so will the current stores in Westlake. Once the shopping center begins to hum, it will draw other businesses in. Delano’s will be the anchor store that reinvigorates the entire shopping center. Already Lamppost provides outdoor chairs for dining. More of that would be helpful, since people love to sit outside and sip coffee and eat whatever. One of the big advantages to shopping at Delano’s will be the lack of traffic congestion that there is at the Marketplace. Ultimately it will be in West Davis’ best interest to shop at Delano’s, to draw in more business to make the entire little shopping mall a bustling business community. Let’s put out the welcome mat for Delano’s, and greet them with open arms like good neighbors. Thank you DANG, for your efforts in making this project of getting a grocery store in West Davis a reality.

  15. I spoke to “Mr D” (Harley DeLano) earlier this week and he is looking forward to having a community get together next month so that we all can meet him and so we can let him know what we would like to see in “your grocery store”, as he put it.

    For those of you who remember, shopped and loved the State Market and the Gee family . . . you are going to love DeLano’s Market and the DeLano family. Harley wants you to know that this is also a real family run business as his son and daughters are all involved.

    To see and find out more about their stores check out their website [url]delanomarkets.com[/url]. DANG will be arranging the September community meeting . . . date, time and place to be determined.

    Hope to see you there and shopping in DeLano’s.

    Eric Nelson

  16. Eric: Stonegate Club would be a fabulous site, if available.

    Rich: punch through to WestDavis Village, UCD? Now that is a good topic for the Blog some day.

  17. Mike – As a Stonegate CC board member I have already made a standing reservation for this event and the Stonegate board has also confirmed their willingness to keep our 970 resident household members updated via our newsletter, website and e-mail list . . . and we have pledged to make all possible club supply purchases at DeLano’s. We are sure that the Village Homes association is moving in the same direction, and we hope any other neighborhood associations will do the same. We want to do everything we can to encourage all Davis residents to come out and give DeLano’s a try, but we really want the West Davis community to make DeLano’s their first option for groceries. We need to keep Westlake and DeLano’s viable with our daily business and hopefully we all will take fewer car trips across town to keep our environment as healthy as possible!

  18. I have not pulled any punches in criticizing the center owners. Farrokh Hosseinyoun and Jim Barcewski, over their (admitted) poor upkeep of the Westlake Plaza Shopping Center over the years. But now they have invested time and money in the center, and it is looking better than ever. DeLano’s will be the jewel in the crown, and everyone in West Davis will be able to take pride in our local shopping center the same way we take pride in giving visitors a tour of Villiage Homes, the Stonegate Country Club or the West Davis Pond. For that, we should be sure to thank Mr. Hosseinyoun and Mr. Barcewski for being partners in this successful outcome.

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