ANDERSON – A market research study estimates that if a grocery store were opened in the former downtown Walgreens store site, it could generate weekly sales of $65,000 in the first year.
That's enough, according to a local economic development official, to support a grocery at the location.
The market study, funded by the Anderson Economic Development Department, was conducted by Associated Wholesale Grocers Inc. (AWG). The study determined that the target trade area has a population of 10,105 people with a weekly supermarket sales potential of $375,143.
The designated trade area extends from 14th and Jackson streets, north toward Oakdale Drive, south to 25th Street, east to Columbus Avenue and west to Arrow Avenue.
“The study absolutely supports a market in downtown Anderson,” said Greg Winkler, executive director of the Anderson Economic Development Department. “The study supports that 14th and Jackson is an ideal location.”
City officials have been trying to entice a grocery store, including a pharmacy, to open at the downtown location. The former Walgreens store contains 14,000 square feet.
The projected sales of $65,000 weekly is based on existing sales volumes reported by area retailers and the store achieving a penetration level of 15.6 percent in the targeted trade area.
AWG identified eight other grocery stores adjacent to the target trade area, including the Walmart Super Center at 2321 Charles St., Pay Less Super Market at 29th and Meridian streets, Strong's Market, Marsh, Los Compadres, Aldi and two Harvest Markets.
Since the study was completed, Harvest officials announced they would close the store on Columbus Avenue at the end of August.
The market research estimated that a downtown store would have affected the Harvest Market on Columbus Avenue by a reduction of 18 percent and that the Harvest Store on Scatterfield Road would see a 4 percent decline in business.
Strong's Market on West 8th Street would have an estimated 8 percent loss in business, the Pay Less store a 7 percent loss and the others a loss in business of 1 or 2 percent.
The AWG market research found that currently Pay Less has 53 percent of the market share for the area, followed by:
- Wal-Mart, 14 percent
- Strong’s, 7 percent
- Marsh, 6 percent
- The two Harvest locations, combined 5 percent
- Aldi, 3 percent
- Los Compadres, 2 percent
- Other grocery outlets, combined 10 percent