A huge crowd of more than 150 people packed the room in a show of strong support for the struggling neighborhood market. They came to lend moral support, give valuable community feedback and send a strong message that the West Davis community was not going to let their store go without at least a valiant fight.
There was no consensus reached or explanation offered as to why the market was struggling, though owner Dennis DeLano indicated that it generally takes about three years for people to identify with a store and begin to shop exclusively.
“But to do that we need to know what we are lacking as a grocery store,” Mr. DeLano said on Wednesday night. “We are hoping some constructive criticism will come out of this.”
Mr. DeLano undoubtedly got more than he bargained for, but the feedback was likely helpful.
Residents offered many different suggestions about ways to improve the store.
Mr. DeLano acknowledged, “Obviously I’m failing at my task of being the neighborhood grocer right now. I would like to do a better job”
In addition, as the store began to feel a pinch, they lost some of the services in the store. “We would very much like to put them back,” he said. “It’s very easy to do.”
Among them was the service deli, which many people expressed strong support for and believed it was a strong selling point for the store.
After several people noted this, Dennis DeLano added that, due to the lack of the foot traffic they could not keep the food fresh in the deli. He had heard a huge concern from previous stores was the lack of fresh food and did not want to see that happen here.
As he put it, he “didn’t want to be that store.”
He promised that if they get the foot traffic up, they will bring back the deli.
Members of the public offered suggestions about marketing strategies to get more people into the market. The need to have advertising in the Davis Enterprise and Sacramento Bee that displays current sales was emphasized by some.
Others suggested that, even in West Davis neighborhoods like Village Homes, many people do not shop there.
Several suggested that they could market fliers delivered around the neighborhood by kids for “lost leaders” in hopes that it would drive in foot traffic. The concern is that despite the fact that the store has been around nearly a year and half, there is not a lot of exposure within the neighborhoods and they need to try to reach people not there.
Later, Mayor Pro Tem Rochelle Swanson reiterated that the idea of fliers was a good one.
The key seems to be to changing shopping habits. Dennis DeLano indicated it often took three years to change shopping habits. People were mixed about how to go about doing this.
Some suggested that if people shop for specialty items and do not find it at a particular place, they will go to another store that carries that item and then purchase all of their shopping at that location.
However, another individual indicated that this was not the problem. That in fact she never found a store that was more responsive to carrying items that are requested. Therefore, people need to become aware that if they simply request an item, IGA will carry it.
This worked for us when we requested a particular item of baby formula, and a few days later they had it in stock. This has saved us on a number of occasions when we ran out of baby formula and needed to it get more quickly.
Another individual said that many of her neighbors do not shop there, as they think the store is too expensive. However, when they compared it to the Food Co-op they found that it was similarly priced. Thus they believe the problem is mainly perception.
However, it seems clear that it is more expensive than Safeway, and as one person indicated to them it would add up if she only shopped at Westlake IGA. This is obviously a difficult issue and there are several ways to parse it.
First, for those who cannot shop there for everything, perhaps the store can offer some specializations so that people come there for at least some things.
Second, there are people who do not like shopping at places like Safeway. And the people they need to market to are probably those who go to places like Trader Joe’s and the Food Co-op and they need to find ways to reach out to those people.
Third, there are those who like convenience and ease and speed of shopping.
Eric Nelson from DANG offered that for a place like Westlake IGA, that purchases and hires locally, 60% of the profits stay in town. Whereas for Safeway, most of the revenue leaves town.
Russ Snyder, also from DANG, suggested that we need to fight for this store. This is our property values and our neighborhood. He pointed out that in the last year or two there have been a number of dark locations that have acquired neighborhood shopping options. While that is good, there is now considerable competition for shopping.
Christie Skibbins from the Chamber of Commerce pointed out that she often hears complaints every time a place closes, but she always asks when the last time the person complaining shopped there. Her point was that these people could change the conditions for the Westlake grocery store.
She also said, on a positive note, they had asked places to sign a covenant against selling alcohol prior to 11 am on Picnic Day and that Westlake IGA was one of the very few to sign it.
Another person offered that people with young kids often do not cook (it is mixed for us, sometimes we do, sometimes we do not). For them, frozen food sections and variety are crucial.
Students are another key demographic. There were a few students there who suggested that social network sites like Facebook would be the key to get business from five large apartment complexes that are near the store location.
Others expressed concerns about the lack of investment by the owners into making the entire shopping more attractive, bringing in better business.
One person complained that the location has bad karma and no energy. It needs an attraction to younger people.
Others expressed the belief that the owner, at least at some point, was consciously trying to run it into the ground.
There were suggestions offered up for making it more shopping-friendly, including the inclusion of art. Some suggested using the municipal art fund, and bringing the experience outside.
Dennis DeLano did offer one point, that the owner has been working on with them on trying to alleviate the stress of rent for the last three months. While he said he is not happy that he has to do it, he has been good about it. He is also trying to bring more business to the center.
He said that the owner is one of the reasons for this meeting to have occurred. And he recognizes that this is the last chance they have to make a Grocery store work in this location.
Will these suggestions fix the problems that Westlake IGA faces? It is hard to know. However, the amount of people who showed up on short notice with little organizing is encouraging. The energy and support in the room was there. People stayed for well over an hour and half to express their views and support.
But it is going to take constant organizing and vigilance to make it work. Time will tell whether that can be maintained, but for last night it was a strong showing.
—David M. Greenwald reporting
[quote]However, it seems clear that it is more expensive than Safeway, and as one person indicated to them it would add up if she only shopped at Westlake IGA. [/quote]
This is a clear message as to why many are not shopping at IGA – price. The owners would do well to listen, but I doubt they will… as evidenced by the statement below –
[quote]Among them was the service deli which many people expressed strong support for and believed it was a strong selling point for the store.
After several people noted this, Dennis Delano added that due to the lack of the foot traffic they could not keep the food fresh in the deli. He had heard a huge concern from previous stores was the lack of fresh food and did not want to see that happen here.
As he put it, he “didn’t want to be that store.”
He promised that if they get the foot traffic up, they will bring back the deli.[/quote]
In other words, I take it, it is customers fault for not buying enough. It is up to customers to increase “foot traffic” into the store. I find this attitude arrogant and appalling. A store is expected to compete, and offer something that will “draw in foot traffic”. It is not the responsibility of the surrounding neighborhood to make this store work, despite the fact that it does not carry certain items and is more expensive than other stores. Frankly I have heard this mantra many times from downtown stores – be patriotic to Davis, don’t shop anywhere but Davis to support our local stores – even if they don’t have what you want and are higher priced. That boat won’t float…
“This is a clear message as to why many are not shopping at IGA – price. The owners would do well to listen,”
The problem I see with this explanation is that if you compare the price of IGA to the co-op, there really is not a big difference. And yet people join the co-op and shop there a lot. So obviously price is not the only variable.
I second elaine’s comment. Delano has a funny way of looking at business -it is the public’s job to support his store, not the other way around. It is Delano’s responsibility to come up with a winning business model.
I have a respect for safeway – when Nugget market came to pole line and did its thing, safeway adapted. They put starbucks inside, reconfigured their aisles, and enhanced the shopping experience.
DMG: “Second, there are people who do not like shopping at places like Safeway. And the people they need to market to are probably those who go to places like Trader Joe’s and the Food Co-op and they need to find ways to reach out to those people.”
They need to market to everyone, not just people who shop at Trader Joes and Co-op.
DMG: “But it is going to take constant organizing and vigilance to make it work.”
it will take a certain amount of organizing but in the end it will take a winning business model.
“They need to market to everyone, not just people who shop at Trader Joes and Co-op. “
That’s the point you are missing. They are not going to be able to compete with Safeway on prices or Costco on bulk.
I didn’t really appreciate Dunning’s column but he at least makes this point well:
“Given its small size, Delano’s will never be able to compete with Nugget or Safeway on selection or price. It can’t just be a “small” grocery store trying to do what everyone else does and charging more for the same products just to make ends meet.”
That captures the point well.
“it will take a certain amount of organizing but in the end it will take a winning business model. “
The point was made that it takes three years to build shoppers, probably is that they are halfway through that and might not make it three years, so they need outreach in the community and the community has to decide if it wants to shop at a big grocery store a few miles away or one in their own neighborhood (that’s btw, the part I disagree with Dunning on).
After attending last night’s meeting, I left thinking that Westlake has a real chance to fix this. The room was packed and there was positive energy there. Obviously Westlake has to tweak their business model, and there’s a chance they could fail. But the reason that I see for them to succeed is that this store’s staff/management is willing to put themselves on the line by building relationships.
There are different reasons for success in a community. Elaine and David M. tend focus on a strict optimal pricing model for the consumer. And for them, maybe Safeway satisfies their needs. Lovely for Davis to have choices for us all.
The discussion last night tended to center more on a community model — a desire for community identity, the fact that people do value being able to walk or bike down the street, say hi to neighbors along the way, shop at a place where the employees begin to know you by name, and where you might likelier engage in a conversation along the way. I don’t have that experience when I go to Safeway. If we were dealing with the possibility of Safeway closing or pulling out, I really doubt if their management would expose themselves to a community meeting like last night’s.
ERM: [i]I take it, it is customers fault for not buying enough. It is up to customers to increase “foot traffic” into the store. I find this attitude arrogant and appalling.[/i]
I should point out that the ethic of shopping locally was not promulgated by Delano & company. It came from DANG members and many community members who have a bad taste and empty feeling of months with a broad empty storefront with occasional broken windows and grafitti. Mr. Delano and co. are responding to that sentiment. Delano just pointed out what he has to see in order to stay in business for the long term. Increasing foot traffic and/or expenditures per visit were alternatives he laid out.
Another related insult that west Davis felt recently was the proposed closure of Emerson Junior High. Economically it makes sense for DJUSD to consider closing it. Yet D. Musser still uses that school board proposal to bash the school district to this very day for daring even to consider it. (For the record, I applaud the fact that we still have our junior high school in west Davis) The lesson to learn here is that community members don’t want their lives determined solely by what would be the apparent lowest cost alternative. Identity, relationships, and connections matter, and it is harder to put a price on that.
Westlake can succeed if it taps into some of the ethic that the Davis Food Co-op embraces, but maybe without the patchouli oil.
There are reasons that no grocery store has survived here, and it isn’t,as many have alleged, poor management. The primary problem is that the surrounding population is not large enough to support a full service grocery, and the store is not unique enough to draw traffic from other parts of town. IGA is trying to fill a niche, but apparently the niche is either too small or not “special enough”. The more they specialize, the less likely they are to fill the needs of the locals.
The comparison to Food Co-op is a bad one – the food coop niche is organized around organic, and local growers, and the store is “owned” by shoppers who support and value the Food Coop. Those shoppers pay a higher price because of the value they perceive. If IGA is “equivalent” in price to the co-op, they will likely not survive.
Why without the patchouli oil ? All good points on this blog. I did not attend the meeting but had a nice call with Eric Nelson of DANG. After speaking with him, I have to agree with the subject matter of E. Musser’s post (usually I agree with David).
It seemed that Eric Nelson was hired (with some pro bono work in there as well) as a marketing consultant and the push by DANG seems a bit self serving. I do believe that people want the IGA in West Davis for all the right reasons. However, let’s be clear here; the shopping center owner so was against a supermarket that he destroyed the loading dock before the IGA ever opened. I take it he was not at the meeting, as he was a stumbling block for years, and I imagine this store is not vital to his overall business model.
I feel for Mr. Delano, as he has an uphill battle with the store. It can’t match prices, quality, atmosphere or the varied needs of its small community. It is not so very convenient that I am willing to forego my support of our Coop and purchase other necessary items from Costco, Nugget and/or Safeway. It is not incumbent upon West siders to figure this out, but on the IGA to figure it out. Let IGA, Eric and DANG do their jobs to provide a West side shopping option. I don’t believe that anybody will be goaded into being afraid of the potential loss of the IGA. I, for one, will support the IGA as best as I can, without fear of losing the store or decreased property values. Just not enough of a carrot for the people to carry the torch on this issue, nor should we have to.
I do wish the IGS and Eric all the best on finding a way for this to work for IGA and the surrounding community.
Adam S.:[i]The comparison to Food Co-op is a bad one – the food coop niche is organized around organic, and local growers, and the store is “owned” by shoppers who support and value the Food Coop. Those shoppers pay a higher price because of the value they perceive. If IGA is “equivalent” in price to the co-op, they will likely not survive.[/i]
IGA cannot compete with the co-op on the issue of member ownership. But it can on the issue of local orientation, community identity, and service. They also offer organic produce. There is nothing to stop them from building relationships with local organic growers, either, if it makes sense.
[quote]There are different reasons for success in a community. Elaine and David M. tend focus on a strict optimal pricing model for the consumer. And for them, maybe Safeway satisfies their needs. Lovely for Davis to have choices for us all.
The discussion last night tended to center more on a community model — a desire for community identity, the fact that people do value being able to walk or bike down the street, say hi to neighbors along the way, shop at a place where the employees begin to know you by name, and where you might likelier engage in a conversation along the way. I don’t have that experience when I go to Safeway. If we were dealing with the possibility of Safeway closing or pulling out, I really doubt if their management would expose themselves to a community meeting like last night’s. [/quote]
And the idea of “community” obviously is not a big enough draw! Price and selection clearly matter more than “community”!
[quote]It is not incumbent upon West siders to figure this out, but on the IGA to figure it out. Let IGA, Eric and DANG do their jobs to provide a West side shopping option. I don’t believe that anybody will be goaded into being afraid of the potential loss of the IGA. I, for one, will support the IGA as best as I can, without fear of losing the store or decreased property values. Just not enough of a carrot for the people to carry the torch on this issue, nor should we have to. [/quote]
Very nicely said. Bottom line is that price does matter; selection does matter. Otherwise IGA would be doing better. So IGA can ignore those two criticisms, but they do so at their peril. My hope is IGA begins to understand that it is their responsibility to figure out what will work there, not just throw responsibility for its success or failure back on customers or the lack thereof. I was a strong proponent for this grocery store, and shopped there when it opened. But when I found the prices considerably higher, and several times could not find the items I was looking for, I gave up in frustration and went back to Safeway.
And for those of you critical of Safeway, I don’t get it. I receive outstanding customer service there, run into neighbors all the time, and admire Safeway for making whatever changes are necessary to keep my business. They just started a new computer program, that allows me to click on various additional discounts, which saves me even more money. Their prices have become so competitive, I have decreased my trips to Walmart, except for one particular item. I plan my shopping trips carefully to conserve gas/mileage, by making one round trip to the bank, post office, Borders, Watermelon, etc. and then drop by CVS and Safeway on my way home. The notion of the “neighborhood grocery store” is a bit unrealistic, as Bob Dunning has so successfully pointed out. Clearly his point is well taken, or IGA would be doing better.
Following up on a point wdf1 made about meeting community, IGA might try putting tables out in front in a sort of cafe style arrangement, and offer little delacacies and drinks. That sort of thing might bring more customers in – people love to have someplace to grab a bite and sit and chat with neighbors. Have Friday music evenings – I’m sure local talent would play for nothing – I know high school kids would. It is going to take innovative ideas like this to keep IGA going. It has to offer something special, bc its prices and selection are abysmal…
wdf1: [i]IGA cannot compete with the co-op on the issue of member ownership. But it can on the issue of local orientation, community identity, and service. They also offer organic produce. There is nothing to stop them from building relationships with local organic growers, either, if it makes sense. [/i]
The coop draws folks from all over Davis, and is established as the ” go to” place for locally grown organic. Nugget would be a close second, it those stores also draw from all of Davis. I think it is highly unlikely that IGA can effectively compete with those two stores on that basis. IGA either needs be a cost effective, convenient supplier of general groceries (apparently that isn’t yet working) or it needs to specialize into a niche where it provides unique value and draws from a wider area. If they are successful in crafting a unique high value store, then will ultimately not serve many of their local clients, who will continue to frequent safeway and other less expensive shopping options.
I was initially surprised that the Delanos were not succeeding here. I think they are doing enough things right and I still think the area is populated enough to support them. I attended the Stonegate meeting and listened to the comments. While I still think the store can be successful if they do a few things better, I have now developed a larger opinion that the small neighborhood grocery store concept is problematic.
The problem I now see is just another example of the “Davis village” versus the “Davis the small city” conflict. If all Davis had were small neighborhood markets and if we owned fewer cars and all of us worked for the campus and biked to work, then I think West Davis residents would flock to Westlake IGA and the store, as is, would be a hit. As Dunning points out in his latest column, we are frequently already in our cars and out of the neighborhood. The proximity criteria for selecting where we shop are more complicated than where our house is located. Also, Safeway and Nugget are really not that far away by car.
It is because we all have cars – typically more than one – and because we have good roads, Westlake IGA must consider Safeway, Trader Joes and Nugget Market as their competition.
I have previous complained that some Davisites disingenuously project Davis as an old-world European village. Some of us seem to want that lifestyle so badly, that we deny we live in a modern society where cars still rule, and deny that our jobs are often many miles from our homes, and our homes are many miles from the downtown.
Unlike the old-world European lifestyle, many of us work much more than 40 hours per week and at the end of the day cannot afford the 30-45 minute round trip walk to the local grocery store to purchase supplies for dinner. I live about five blocks away from Delanos, but I drive to the store more than I walk there or bike there… simply because I cannot afford the extra time to walk or bike.
The Delanos needs to tweak their identity and strategy to be a both a local neighborhood market, and one that competes with the other markets in the city. They need to draw more shoppers from the surrounding area. To do that, they need to develop a stronger store personality that is anchored by some specialty. The comment about not having enough foot traffic to support a deli is interesting to me, because I don’t think the other markets with a deli have much foot traffic either. My preference would be for them to specialize as a full-service deli and meat counter. I would like to see them replace the north side of the store with this. For a specialty, I think they might consider expanding on the weekend tri-tip BBQ concept and maybe add a smoker.
They also need to work with the landlord to implement some exterior and interior ambiance improvements. After hearing the comments, I drove by and looked at the exterior again. Then I went inside. My new assessment is that the store is not inviting enough.
Lastly, they need to invest in better marketing to get the word out. Many people living West of 113 do not drive past the store. They need to be prodded to make it a new destination.
I think Delanos can succeed if they do these things to better compete. But it general, I am less inclined to support the neighborhood market concept based on these early results.
One other idea that I have not heard floated… if the Stonegate residents so benefit from having this local market, how about increasing their homeowners association dues and use it to help pay part of Delanos rent?
David ,
Print up those fancy fliers that you do and mail to all of west Davis , and then let them advertise for free on your blog .
Kinda like , put your money where your mouth is .
“And for those of you critical of Safeway, I don’t get it. I receive outstanding customer service there, run into neighbors all the time, and admire Safeway for making whatever changes are necessary to keep my business. “
I have nothing against Safeway per se. But I don’t like doing my shopping there if I can help it. It’s big, it takes a lot longer, and my money leaves this community. There are some people who are looking to save every penny, my folks are like that too, and for them Safeway or in their case Vons is a good place to shop. For me, I don’t have a lot of time and prefer the convenience of walking next door to get what I need.
Avatar: I will do it, when I get your $100 check. That way you too would be putting your money where your mouth is. In the meantime, I shopped there last night and this afternoon. Isn’t that also kinda like putting my money where my mouth is?
[i]I have nothing against Safeway per se. But I don’t like doing my shopping there if I can help it. It’s big, it takes a lot longer, and my money leaves this community. [/i]
And how is shopping at Delano’s IGA keeping your money at home, and Safeway not? I believe Safeway is headquartered in Pleasanton, and Delano is SF/Marin.
[quote]And how is shopping at Delano’s IGA keeping your money at home, and Safeway not? I believe Safeway is headquartered in Pleasanton, and Delano is SF/Marin.[/quote]
I was thinking the same thing…
Neighborhood markets appear to be a tough nut to crack in this country:
[url]http://freshneasybuzz.blogspot.com/2010/10/philip-clarkes-welcome-to-america-tesco.html[/url]
Actually Westlake IGA is headquartered in Davis. It is run separate from Delanos. And the owner lives in Davis. Did you know that?
“60% of the money you spend at Westlake stays in Davis and locally, 60% of the money you spend at Safeway leaves town.”
Yet you could not find a competent economist* to tell you that makes one whit of difference to the economy of Davis or of Oakland.
*You will find a large number of local chambers of commerce who will make this sort of argument.
Actually I didn’t know that the owner of the store lived in Davis. All that I’ve ever seen in this blog and anywhere else was that Delanos ran this store. Is Dennis Delano the store owner? It seems so from this quote: [i]Dennis Delano did offer one point, that the owner has been working on with them on trying to alleviate the stress of rent for the last three months. While he said he is not happy that he has to do it, he has been good about it. He is also trying to bring more business to the center.
[/i]
So, does someone from Davis own the operating business? Is it Dennis Delano? What is the relationship to the Delano stores in the Bay Area?
[i]So as I wrote, 60% of the money you spend at Westlake stays in Davis and locally, 60% of the money you spend at Safeway leaves town. [/i]
David, I don’t think that it is remotely possible that 60% of the money spent in that store stays anywhere close to Davis. We have almost no food manufacturing or slaughter facilities in Davis. We have no cereal, pasta, flour , canned goods etc. We do have a few organic farms around Capay Valley, but the local, organically grown component of their sales would probably be less than 5% of revenue.
Additionally, grocery store operating margins are very low (on the order of 2 – 5%), and therefore even if the store donated every dime that it made (and it apparently isn’t making any money if it can’t pay its rent), then there is no money staying in Davis for anything that isn’t made here. Store workers who live in Davis would obviously spend money they earned here, but that is no different than workers at Safeway.
I’m going to back off that statement slightly, I have more recent info that while they moved the operation of Westlake Market to Davis, that the owners may not live in Davis. Westlake is a separate company than Delanos, even though it the same family. I learned that for the first time when some of the Delanos markets had to close and Harley Delano told me that they were separate corporations for precisely that reason.
Before the Delanos had even opened Westlake IGA in January 2010 they had moved their ENTIRE corporate headquarters/operations from San Rafael in Marin County to the Westlake Center in Davis. They occupy a suite of offices upstairs which serve both their Delanos stores and their independent IGA’s which are in Fairfax and Davis. Dennis Delano (president) lives in Carmichael, Harley (ceo) lives in Cool and his daughter who works in the Davis store lives in Vacaville, unless she has recently moved to Davis. All the Delano family members have their main offices and places of employment in Davis. Furthermore all the employees who specifically work in the Westlake IGA live in Davis too. That includes all clerks & cashiers and the store management.
Adam: I am just going by the figure that was presented last night. I have not researched into it to see if it 60%.
[quote]David, I don’t think that it is remotely possible that 60% of the money spent in that store stays anywhere close to Davis. We have almost no food manufacturing or slaughter facilities in Davis. We have no cereal, pasta, flour , canned goods etc. We do have a few organic farms around Capay Valley, but the local, organically grown component of their sales would probably be less than 5% of revenue.
Additionally, grocery store operating margins are very low (on the order of 2 – 5%), and therefore even if the store donated every dime that it made (and it apparently isn’t making any money if it can’t pay its rent), then there is no money staying in Davis for anything that isn’t made here. Store workers who live in Davis would obviously spend money they earned here, but that is no different than workers at Safeway. [/quote]
Excellent points…
At the Stonegate meeting, I cringed over some of the comments and the general tone that indicated a lack of business sense. Rallying the neighborhood might feel good, but there will never be enough charity or activist shoppers in Davis to save a store.
I think instead of suggesting we should shop at Westlake IGA because the dollars stay local, or that we support IGA or other neighborhood markets as a concept, we should instead focus on advising the store how to be more competitive based on the more standard value criteria: selection, price, service, convenience, ambiance, etc. Think of this as the store needing to increase the strength of its customer magnet instead of shoppers needing to overcome the repelling polarity. We can’t do this for them; they need to do what is required to make the store successful.