The Fresh Market announced plans late Monday to shutter fifteen stores across nine states as they continue what the release announcing the closures referred to as a "turnaround plan." Two of the fifteen stores slated to close are in metro Atlanta, one in Brookhaven, the other in Snellville. According to its website, the Greensboro, NC-based retailer currently operates 176 stores in 24 states .
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| The Fresh Market at Brighten Park |
Emails sent to patrons of the two Atlanta area stores explained that the stores would close early Monday (4PM) to prepare for a liquidation sale that would begin Tuesday morning. Customers are invited to enjoy 25% off all in-stock alcohol and 30% off everything else in the store.
Private equity firm Apollo Global Management acquired The Fresh Market, Inc. in April 2016 in a deal valued at $1.36 billion. This past fall, Larry Appel, a veteran of both Winn-Dixie Stores and The Home Depot, was named President and CEO of The Fresh Market. The combination of the company's privatization by Apollo and installation of the new CEO have reportedly led to a lot of changes, many not for the better within the organization, including a number of long-time staff resigning, according to sources. (There are also rumors that the company may be on the verge of closing all stores.)
The two Atlanta area stores are quite new with the Brookhaven store having opened in July 2015, and the Snellville store in March 2016. Both stores featured the grocer's latest store design with improved lighting, more offerings and increased prepared and grab-and-go items. A number of the other stores slated for closure were recently opened, too, including those in North Charlotte, NC (November 2014), Hendersonville, TN (March 2016) and Winchester,VA (August 2016.)
The Brookhaven store, which measures 24,625 square feet, opened in place of Loehmann's, which closed all of its stores nationwide in early 2014. The shopping center, known for many years of Loehmann's Plaza, was rechristened "Brighten Park," in advance of the grocer's debut. In addition to a complete renovation and reconfiguration of the parking lot and access to the center, Regency Centers, the property's owner, secured leases with a number of new tenants, Zoës Kitchen, Grub Burger Bar, Boardroom Salon for Men, Corepower Yoga and junior anchor Tuesday Morning, among them.
Regency Centers was so pleased with the re-positioning of the center that it highlighted it in a "Success Story" profile where it referred to it as a "beloved neighborhood center" with "a bright future." Now the Real Estate Investment Trust (REIT) must go back to the drawing board for a suitable replacement for The Fresh Market.
While Regency is no doubt disappointed in the closure of The Fresh Market, the soon-to-be vacant anchor space may provide a unique opportunity for an unlikely retailer: Publix. The Florida-based grocer announced plans last year to re-launch their "GreenWise" stores, and has already officially confirmed at least three, one of which is within a Regency Centers property in Mt. Pleasant, South Carolina. GreenWise stores stock large amount of Publix private label brand GreenWise, but also other organic and healthy products. The 21,535 square foot Greenwise store at Indigo Square in South Carolina will anchor the repositioned center and is expected to open early next year.
Although the company has not officially confirmed it, sources close to the situation indicate GreenWise will anchor a new Fuqua Development project on Sandy Plains Road in East Cobb. Publix has previously indicated they intend to add additional GreenWise stores, and sources say they are actively scouting existing markets such as metro Atlanta for new stores.
Regency has a history of securing some improbable anchors for some of its vacant anchor space in metro Atlanta.
As ToNeTo Atlanta previously reported, Regency will add 365 by Whole Foods Market to its Paces Ferry Plaza shopping center in Buckhead. The new Whole Foods concept will occupy a newly created anchor space in the center also home to Pero's Pizza, Houston's and Blue Ridge Grille, among other tenants. The 29,740 square foot store is expected to open late this year.
In Powers Ferry Square, Regency was to have welcomed North Carolina-based Southern Season, a Fresh Market+Williams-Sonoma-like retailer, but the retailer canceled their plans in 2016 amidst a chapter 11 bankruptcy filing. In place of the would be Southern Season, Regency secured a lease with HomeGoods which will occupy 21,296 square feet and local fitness facility BURN to occupy the remaining 4,688 square feet. BURN opened late last year and HomeGoods is expected to debut next month.
Scenic Promenade, the Scenic Highway shopping center where The Fresh Market's 21,000 square foot Snellville store is located, opened in 2016 and is also home to a relocated Best Buy as well as a HomeGoods store, among other tenants. The center was developed by Maxie Price Jr. and according to a listing on LoopNet, is currently being marketed for sale for an undisclosed price. Newmark Knight Frank is handling the center's sale and proudly promotes it as being "grocery-anchored" with "secure income."
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| The Snellville location of The Fresh Market |
Following the closures, The Fresh Market will operate thirteen stores in Georgia and Virginia making them tied for the third most by state, following Florida (46) and North Carolina (21). The closures of four stores in Illinois halve the grocer's presence there, and two closures in Wisconsin eliminate the grocer from The Badger State. The Fresh Market previously pulled out of both California and Texas.
Sprouts Farmers Market, which entered the Atlanta market in 2014 with a store in Snellville, has grown their presence to now eclipse that of The Fresh Market with a total of seventeen stores in the Peach State. Earth Fare, which opened a store at Emory Point on the same day in July 2015 that The Fresh Market opened at Brighten Park, already closed their store as well as one in Peachtree Corners. Both stores shuttered this past March, in addition to a couple of others in the region, as the North Carolina-based chain trimmed its store count.
Among the thirteen stores The Fresh Market will continue to operate in metro Atlanta area are two in Buckhead, one on Peachtree Road just south of Peachtree Battle, another on Roswell Road near Chastain Park, as well as stores in Dunwoody, East Cobb, Alpharetta and one in Roswell that opened in late 2015 in a former Staples.
Are you surprised by the closures of so many The Fresh Market stores? What would you like to see open in place of the closing The Fresh Market stores? Where do you do most of your grocery shopping?
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