04 ATTACHMENT 2 - Laserfiche WebLink

Retail Mixed Use Market Study Update 1 January 6, 2010 Grocery and Pharmacy Assessment This section provides an overview of the current supply of grocery stores and drug stores serving the Hacienda PTA, focusing on the supply of the stores themselves irrespective of the characteristics of the centers in which they are located. Grocery and drug stores are specifically evaluated here because they are typical anchor tenants for neighborhood retail projects, ensuring a neighborhood orientation as well as generating the customer levels needed to sustain other smaller support retail and restaurants. Because of this and given the high level of demand for Food at Home and Medicine found in the previous buying power analysis, these types of stores are potential anchors for mixed use retail in Hacienda. Existing Supply of Grocery Stores Grocery stores serving the Hacienda PTA are shown in Map D and Table 15. There are a total of four full- service chain grocery stores and one independent full- service store, Nob Hill Foods. Lucky's and Nob Hill Foods are located just outside of Hacienda. Three different Safeways ring Hacienda's PTA at the northwest, northeast, and southeast corners. There are also four large specialty or warehouse groceries, including Trader Joe's, Gene's Find Foods, Smart & Final and 99 Ranch, as well as many smaller independent ethnic or health food specialty stores. The full - service markets currently located near the PTA are conventional mid -range to high -mid range stores. While Nob Hill Foods has a somewhat higher end product offering than Safeway and Lucky's, they do not have the full range of natural and organic products that characterize newer generation niche grocery stores like Whole Foods. Pleasanton shoppers currently purchase organic produce and other specialty prepared foods at the very popular year -round Pleasanton farmers market. Over the past 10 years, the grocery industry has undergone dramatic change in response to the increasingly specialized and diverse food and household soft goods preferences of consumers. Consumer segmentation in the grocery industry has led to a proliferation of new store types targeting particular ethnic groups or lifestyles. Trader Joe's, for example, with its gourmet discount concept, serves as a regional draw in many areas, and also succeeds in shifting sales away from traditional grocery stores by offering staples such as eggs, milk and produce. Grocery stores must be more responsive to the increasingly sophisticated tastes of consumers. Research shows that many consumers shop in three or more different types of food stores. At the same time, households are cooking less at home, and prepared foods have come to occupy a growing share of store space and sales. Dream Dinners, located in Hacienda, is a recent prepared food concept where customers themselves prepare multiple entrees on -site to serve at home to their families throughout the week. Given the socioeconomic characteristics of the PTA's households (affluent, educated families), there is a distinct lack of higher end grocery and prepared food shopping opportunities in the area. While increased consumer health consciousness increasingly drives this market segment, there is also a simultaneous trend away from home food preparation in response to the time constraints facing two- worker households. Full - service natural grocery stores usually offer an extensive selection of freshly prepared gourmet takeout items to meet the needs of professional households. Even with the development of a Whole Foods in the Green at Park Place, there should still be unmet demand for gourmet grocery and deli food items from Pleasanton -side PTA residents who do not want to cross I -580 or deal with negotiating a full -size grocery to obtain a limited number of items, as well as office workers and transit users. 43