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Whole Foods Discussion Update

Posted by pqresident
November 1, 2007

Our sources tell us that Whole Foods and developer Douglas Jemal did meet recently and the two parties will meet again to continue their discussions in the coming weeks. We see this as an indication of a fruitful and constructive meeting. Last we saw, signing of the petition tapered off to a few per day and the petition is no longer linked from the Downtown Neighborhood Association website but the total number of signers did exceed 1700. Stay tuned!

Related posts:

  1. Douglas Development Wants Whole Foods In Penn Quarter! Needs Residents’ Help
  2. Whole Foods Petition Hits 1400
  3. Penn Quarter Building Permit Update (Legal Sea Foods Renovation/Madame Tussauds Work)
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Comments
Comment by CBD on November 1, 2007 @ 1:48 pm

I’m thinking of creating a performance art piece, “What Would You Do For A Grocery Store In Our Neighborhood?” We can all participate, and perform it on the Mall. Maybe, finally, some grocer somewhere will take notice and decide they will indeed stoop so low as to take our filthy wretched money.

I think it’s a good idea, but I do have strep throat and maybe it’s the fever talking.

Comment by Kelby on November 1, 2007 @ 3:13 pm

Here’s a link to the petition. It’s currently at 1781, although it probably won’t break 1800 since people don’t know how to get to it anymore.

Comment by anon on November 1, 2007 @ 4:52 pm

Can I vote against Whole Foods. The last batch of veggies I bought at the P St. store were extraordinarily expensive and of questionable quality.

Comment by Jon on November 1, 2007 @ 6:00 pm

I would not get my hopes up for a WF in the hood. The space in question is too small (WF has standards for minimum size, etc) and for a company that is trying to figure out its recent merger with Wild Oats, they are in no position to try a new store concept — especially one that is only blocks away from an existing store.

And speaking of expensive produce of questionable quality — thank goodness the farmers’ market is closing for the season. $4 tomatoes and lettuce at $12 a pound is crazy — and to be honest — I do not find the quality any better than the O Street Giant.

Comment by Anonymous on November 1, 2007 @ 7:26 pm

That farmers market is a joke. The vegetables are of questionable quality and the meat I got one time was so disgusting I just threw it out…after dropping $15 on it.

Comment by Kimberly on November 1, 2007 @ 10:34 pm

I agree on some of the items at the PQ Farmers Market, but have also had some good finds there. In the summer the corn was some of the best I’ve had. And the breads, while expensive, are wonderful; their challah is to-die-for (and makes wonderful french toast as well). Oh, and I just adore the mushroom lady. She has a wide variety of exotic mushrooms and I’ve tried several kinds that I’ve enjoyed, and her soups are tasty as well.

Comment by Vince on November 1, 2007 @ 11:49 pm

I find that the bread and the meat that I have purchased has been of a fine quality. The fruits and vegetables are very good too. I think the market has greatly contributed to the quality of life in the Penn Quarter.

Comment by pqresident on November 2, 2007 @ 1:38 am

from the Whole Foods website regarding the Q3 2007 conference call…

“Our current average store size is just over 36,000 square feet, while our average store size for stores in development is currently 53,000. We have continued to sign and open smaller stores, typically in markets where it is hard to find larger boxes, while experimenting with opening some very large format stores…[stuff deleted]…We believe our “sweet spot” for most markets is a footprint between 45,000 and 60,000 square feet which allows us to create the exciting shopping experience we are known for while simultaneously maximizing our return on invested capital.”

WF prefers the 45K to 60K range but clearly, if the current average store size is 36K square feet, it means they operate stores under 36K square feet in size and they “…continued to sign and open smaller stores…” I would not discount WF as a contender in our ‘hood.

Comment by monkeyrotica on November 2, 2007 @ 9:08 am

The deciding factor that convinced Whole Foods to open on P Street was a video put together by the neighborhood association showing their potential customer base: affluent, older professionals with disposable income. A similar campaign may convince them to open in Penn Quarter.

Comment by Anonymous on November 2, 2007 @ 9:38 am

One thing I noticed from the petition is that many of us included thoughtful and insightful comments in addition to our e-signature. These comments focussed on valid business considerations such as PQ’s demographics and the neighborhood’s demand for a grocery store. I hope WF reads and considers these remarks.

If anyone hasn’t signed the petition, include a personalized comment with your e-signature.

Comment by Andy in PQ on November 2, 2007 @ 10:12 am

Perhaps the BID has something like the video monkeyrotica mentions. It’s good that they are still talking.

Comment by Kelby on November 2, 2007 @ 1:03 pm

This link shows the current Whole Foods stores under development. There are several that are in the 20,000 sf range. The smallest I see is in San Francisco at 16,790 sq. ft.

This leads me to believe that parking might still be more of an issue that space.

Comment by Pat in DC on November 2, 2007 @ 3:19 pm

The farmers market is not a replacement but it is nice to supplement the basics. My girlfriend and I found the buffalo burgers very tasty. And the yellow squash (out of season now it seems) was superb. The breads are expensive but we have haggled some deals.
But in the end we still have peapod delivering the majority on a bi-weekly basis.

Comment by Columbo on November 2, 2007 @ 4:04 pm

Wow hating on the farmers market? I don’t get that at all. It’s not a shoppers food warehouse, it’s a farmers market. Some things will be more expensive, some less. But you see the quality before you buy so if you don’t like the look of the items or the cost, don’t buy it.

Comment by Evroult on November 2, 2007 @ 8:07 pm

Dumont condos will in the next several months open a model in the Dumont building on Mass Ave. At some point you would think they would leave the space next to Starbucks on E St under the Clara Barton. I wonder if a look at the floor plans would show whether this space could be combined with the Balduccis space.

Comment by LiveAndWorkinPQ on November 3, 2007 @ 9:54 am

Evroult – I am basically just making this up and I do not believe that Whole Foods will actually come nor would they do this, but thinking about your idea….The following would be interesting – set up the grocery store however they were going to do it and then have the Dumont space as some sort of annex or quick stop for picking up ready made items, or even a place to pick up phone or internet orders.

Not realistic, but most of this grocery store discussion is just speculation anyway…

Comment by Jon on November 3, 2007 @ 1:30 pm

A neighbor of mine wanted to create an art installation piece in which we emptied here condo and replaced the furniture with shelves and groceries — the unit would be open 24/7 for a week and we would encourage residents of PQ to stop by and “shop” and comment. Loved the idea, but the execution and logistics were too much to overcome.

Comment by Smith MBA on November 3, 2007 @ 4:35 pm

I am astounded that anyone would knock the farmer’s market. I have seen Jose Andres and Mario Batali, two of the world’s greatest chef’s, shopping at our little local market. But that is besides the point.

I think it would be exciting if the space was marketed to the British supermarket chain Tesco. They are looking to expand into the U.S. with a smaller store floor plan. I think that would be a better fit in the neighborhood.

Comment by anon on November 3, 2007 @ 6:28 pm

I think the negative comments about the farmers’ market must be from people who don’t know much about cooking or food. I have shopped there weekly, have gotten excellent produce, cheese, bread, crabcakes, poultry, pork, and eggs. I’m not a fan of buffalo, so I haven’t purchased that item. I also shop every Sunday at the Dupont Farmers’ Market, which is sponsored by the organization that sponsors our Thursday market. Between those two markets, I rarely set foot inside a grocery store, and have consistently wonderful meals and food. If I go to a grocery store, it’s Trader Joe’s. I am really satisfied with the selection and quality of food available at the farmers’ markets and TJ’s. I am very happy the Dupont Market is open year round…the meat available there is fabulous. There is a difference between grass-fed meat — leaner, tougher, shorter cooking time, more flavorful. It doesn’t always look as pretty as the hormone, chemical, corn and fat injected stuff at the grocery store, but it’s a whole lot better for you, and the world. Maybe we need some cooking classes in the neighborhood to help people learn to prepare the kind of food that’s sold at farmers’ markets?

Comment by CBD on November 3, 2007 @ 8:29 pm

I cheer for the farmers market too. I always get terrific apples there, among other good produce. Yum to the bread too!

Comment by Anonymous on November 4, 2007 @ 3:24 pm

Tesco expanding in the US? I love Tesco, what a great idea! I miss their to-go meals with the foldable cutlery and the mini hummus to-go cups. I wonder why no stores in the US have thought of that already.

Comment by anon on November 5, 2007 @ 1:38 pm

to #18

I saw Jose Andres steal a nectarine this summer. Scouts honor. He winked at the vendor when she turned to see someone taking her stuff uninvited.

And it’s the exact same Fresh Farms Market you can find at various places around the city, including Dupont Circle, H St. NE, and Silver Spring. I personally think the quality of some vendors is high, but it has become much more expensive over the past couple of years.

From my experience, farmers markets in other places range from competitively priced to bargain. Maybe they see all the DINKS walking their Shitzus and see dollar signs.

Comment by Evroult on November 5, 2007 @ 6:46 pm

Compared to a year ago, Whole Foods or a Tesco-like small format competitor might have some more compelling reasons to take the space.

As they get bigger, they will face some regulatory risk. The recent opposition from Washington on the merger with Wild Oats resulted in millions loss in market cap. Putting a successfull Whole Foods that offers a great customer service and a great shopping experience right in the regulator’s backyard might be a better use of public relations dollars than paying for more lobbyists.

Whole Foods has announced a new small store format model in Colorado, possibly in response to Tesco. Tesco is currently concentrating on opening new small format stores on the West Coast. Whole Foods was behind the curve, but is now responding with small format stores on the West Coast but the east coast is wide open for first mover advantage. Safeway and Walmart see the writing on the wall and are at conferences saying they have to experiment with the format. See article on a new format store in Colorado stating that “…Whole Foods unveiled the new, small concept just as Britain’s Tesco PLC prepares to open “Fresh & Easy” markets in the United States this fall. The Tesco stores, which will be around 10,000 square feet and emphasize ready-to-eat meals and fresh produce, are set to open in the southeastern United States”. The Colorado new small concept store is 18,500 sq ft (the Balduccis space in approx 20,000 sq ft.)

See the article at http://abcnews.go.com/Business/wireStory?id=3541821

Great discussion on Whole Foods and big opportunity for an east coast small format store in the following–
http://naturalspecialtyfoodsmemo.blogspot.com/2007/09/thursday-talking-points-memo.html

The foot traffic from tourists coming up from the Mall could be viewed as a good way to build brand equity. Apple and Nike build big showcase stores in NYC locations trafficked by tourists. The international tourists are especially looking for quick to go food to eat on the run between museums-and all the new professionals moving into the new and rehabed buildings (new DLA Piper, SEC building,etc) will be looking for convenient quality lunches also. Apparently the Whole Foods new small format stores will include more ready to eat items and meals.

Comment by jason on November 6, 2007 @ 10:54 am

omg, Evroult, you just made my day!

Comment by Andy in PQ on November 6, 2007 @ 11:32 am

Mine too. Let’s hope there is some good news at the next DCDNA meeting!

Comment by Anon on November 12, 2007 @ 6:10 pm

Just heard through a friend who lives in the area that the Whole Foods deal has “fell through.” Apparently this guy’s girlfriend works for Jemal. Boo hoo.

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