Pickerington Area Taxpayers Alliance

I wish to express my thanks to previous city councils for their forethought in improving Diley Road. Thamks for creating a gateway to Pickerington from the south. We will reap the benefits.

Article published Aug 7, 2006
A new Meijer store won't hurt
Study shows existing grocery stores in Canal Winchester will not suffer
By TAMARIA L. KULEMEKA
The Eagle-Gazette Staff
tkulemeka@nncogannett.com
CANAL WINCHESTER - In the world of grocery retailers there are bound to be some winners and losers. But Meijer stands out among the winners, according to a study conducted by a Columbus-based retail consulting firm.
With a Meijer store inching its way closer to being built in Canal Winchester, the village's Planning and Zoning Commission wanted to know how other grocers would fare once the new store opens.
A market analysis conducted by Boulevard Strategies shed light on what impact a Meijer store would have.
''Right now the grocery industry is one of the hottest areas of competition in retail,'' said Christopher Boring, president of Boulevard Strategies. ''You have four major players - Wal-Mart, Kroger, Giant Eagle and Meijer - and they all have aggressive plans for the central Ohio market, and none of them can afford to back down.''
The proposed Canal Winchester Meijer would be built on Diley Road, near the Hill Road and Diley Road interchange off U.S. 33.
The store would become the second Meijer in Fairfield County. The lone Meijer store is off U.S. 33 near Lancaster, less than a 15 minute drive from the proposed site. There also is a Meijer store off Brice Road in Columbus, which is less than a 15 minute drive from the proposed site, prompting Canal Winchester Planning and Zoning members to ask if the new location would cause those locations to shut down, or negatively affect grocery stores in the village.
''There's a lot of big box grocery stores in the Canal Winchester area, Pickerington, southeastern Columbus and Lancaster, and it was felt that at some point someone is going to lose in that competition,'' said Bill Christensen, chairman of the Planning and Zoning Commission. ''We basically wanted to find out if it's one of the other two stores (Kroger and Wal-Mart) we have in town.''
Based on the study, there is ''clearly room for another grocery store in the Canal Winchester area,'' Boring said.
''If a Meijer store were to go on Diley Road, about half of its grocery revenue would come from sources that are not claimed by any one grocery store right now,'' he said. ''Those include future residential growth, because Diley Road is right in the middle of growth.''
A proposed hospital across the street from the site also would be good for business. Some sales from existing Meijer stores in Lancaster and off Brice Road will transfer to a new store; and other sales would come from stores such as CVS, and other stores that don't rely on groceries as its primary commodity, Boring added.
''The most impact will be felt by Wal-Mart,'' he said.
Wal-Mart has one store in Canal Winchester, and another location in Reynoldsburg, on the edge of Fairfield County. Lancaster is expected to get a Wal-Mart store soon. Wal-Mart is doing extremely well in southeastern Franklin County, Boring said.
''According to our estimates, Wal-Mart is earning $50 million more a year than what would be expected,'' Boring said.
Boring said estimates show that Wal-Mart stores in Canal Winchester and Reynoldsburg and the Sam's Club in Reynoldsburg have combined to sell about $170 million annually in groceries - proving a new Meijer store wouldn't put the stores out of business.

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''We think Meijer may take 9 percent of sales that exist in Wal-Mart, but Wal-Mart can stand to lose some sales and still be very profitable,'' he said.
Boring hopes the arrival of Meijer will divert a Wal-Mart store from being constructed in Pickerington. Speculation and rumors have prevaded the area that Wal-Mart is eyeing land near Pickerington High School North off Refugee Road.
''My hope is if Meijer opens first that Wal-Mart may decide there's too much competition and go elsewhere,'' he said.
Boring is most concerned about more grocers moving into the Pickerington/Violet Township area. He believes that market is becoming oversaturated. There's already a ''huge battle'' between Giant Eagle and Kroger - located across the street from one another on State Route 256.
Giant Eagle recently opened its first store in the city, and Kroger has transformed its longtime store into Kroger Marketplace, carrying everything from toys to home decor.
While the arrival of Meijer won't put a pinch on those stores, the Kroger store on Gender Road in Canal Winchester must step it up a notch. Boring said the store could stand some renovations and update its facade to keep up with the newer stores. He doesn't think the Gender Road Kroger will close, however.
The market analysis study aided the Canal Winchester Planning and Zoning Commission in its decision to approve the final design plan. The plan is slated to go before council today.
Christensen said it was important to make sure that approval of the store wouldn't significantly impact other grocery stores in the village, causing a store to close.
''There's a lot of empty big boxes on Brice Road, and we don't want to end up being one of those areas,'' he said. ''It's just a scar on the area.''
Many big box stores that once adorned the Brice Road area, such as Sam's Club, Best Buy, H.H. Greg and Babies R Us, have relocated to the Reynoldsburg area, off State Route 256.
Brice Road has declined as a regional retail corridor in central Ohio, according to the study.
The area along with Sawmill Road, were among the first areas to attract high concentrations of big box retailers without a regional mall nearby. ''As central Ohio's population sprawled outward, retailers followed rooftops,'' leaving both corridors with high vacancy rates.
The Brice Road Meijer still has some staying power, despite its vacant surroundings, Boring noted in the study.
''I believe (Brice Road) Meijer is somewhat immune to the blight of Brice Road because it has built up a loyal customer base,'' Boring wrote in the study. ''Meijer leads with its grocery and pharmacy departments at this location.''



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