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![]() | David Stinebrink, left, his father Mark, middle, and brother Matt walk through the old Sentry grocery store at Pershing Plaza as they get the building remodeled to open as a Piggly Wiggly in a few months. ( KENOSHA NEWS PHOTO BY KEVIN POIRIER ) |
Investing in groceries
Being successful with a new grocery store in Kenosha these days could be difficult, an industry analyst predicted.
This area has had no population growth, job losses of more than 800 the past year and double-digit unemployment, said David Livingston, a Waukesha-based grocery industry consultant.
“There’s just no increase in demand for groceries in Kenosha,” he said.
But Piggly Wiggly Midwest disagrees. The company asked the Stinebrink grocery family, with more than 20 years in the business in Walworth County, to open a new franchise in Pershing Plaza, 7600 Pershing Blvd., where a Sentry SuperSaver closed in March 2001.
Mark Stinebrink and son Matt Stinebrink hope to open the new 53,000-square-foot store by Mother’s Day.
Gary Suokko, Piggly Wiggly Midwest chief operating officer, said a marketing survey showed opening a franchise store to supplement the company-owned stores at 2215 80th St. and 2801 14th Place would be a good move.
“Otherwise, we would not have proceeded” with the new store, he said.
The survey also indicated a small “leakage,” or amount of residents who shop outside the area, and a base of Piggly Wiggly customers from the two other stores, said Mark Stinebrink.
The corporation does expect the new location to drain some sales from the existing stores, especially the 80th Street site, Suokko said. Customers who live closer to Pershing Plaza probably would switch.
“We’re fine with that,” Suokko said. Part of the reason is the 80th Street store is small.
Stinebrink said the 80th Street store is performing better than it can comfortably handle. A crowded store with patrons waiting too long in line can be detrimental, he said.
Livingston believed that, if there was no market need to fill, the company must have negotiated a good deal for the site.
“It was a fantastic arrangement,” Stinebrink corrected him. He declined to reveal rent and other details.
Livingston added that even if a favorable lease were the only positive, it wouldn’t necessarily mean little chance for store success.
“I’m not saying it’s a bad opportunity,” he said. “They wouldn’t do it unless they saw some opportunity there.”
Piggly Wiggly has the lease on the store, and the Stinebrinks will be subleasing. The lease is for 12 years, with options extending it to 22 years.
“I’m hoping we’ll be there quite some time so that we have to renew that lease,” said Stinebrink.
Livingston said the good deal Piggly Wiggly forged with the landlord could result in a great deal for customers.
“The competition will cause everyone else to be sharper in their game,” he said.
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