Amazon Fresh, the ubiquitous online retailer's new grocery chain, appears headed for Hall Road in Shelby Township.
Water cooler chatter suggests it could be just the first location in Metro Detroit.
But if you're going to test the waters with a mass-market-appeal grocery store, Hall Road in Macomb County would be a logical place to dip your toe.
First of all, Hall Road is one of the most highly-trafficked retail corridors in the region. That alone makes it a key target if the Seattle-based company is going to start building out a network of low-cost grocery stores to rival Walmart, Aldi and Trader Joe's.
But perhaps even more than sheer car traffic, the demographics are appealing.
According to data from CoStar Group Inc., a Washington, D.C.-based real estate information service, the population of 35- to 44-year-olds within a five-mile radius of the store is expected to more than double by 2025 from 14,979 to 31,160.
That's a key slice of the population with families and spending power.
The overall population within five miles is expected to have a modest 0.4 percent growth from 252,852 in 2020 to 257,524, CoStar data shows.
In addition, households making $75,000 and up are expected to increase by 2025:
- $75,000 to $100,000: 14,791 in 2020 but increasing to 14,923 by 2025
- $100,000 to $125,000: 12,065 in 2020, growing to 12,557 by 2025
- $125,000 to $150,000: 8,352 in 2020 and then increasing to 8,851
- $150,000 to $200,000: 7,855 increasing to 8,350
- $200,000 and up: 6,049 increasing to 6,627
Total spending on food for the household is expected to increase by 2025 as well.
While households within a two-mile radius of the site at 13975 Hall Road spent $79.2 million in 2020, averaging $3,810 per household and $1,619 per person, that's expected to increase to a total of $86.6 million by 2025, and $4,174 per household and $1,771 per person.
The same type of increase holds true within a five mile radius.
In 2020, there was $401.2 million spent, compared to the $447 million expected for 2025. While the average household spent $4,081 in 2020, that's expected to grow to $4,463 by 2025, while per-capita spending on food for the household is anticipated to grow from $1,587 to $1,736.
Bloomberg reported earlier this month that Amazon (Nasdaq: AMZN) has opened 11 of its grocery stores and has at least 28 more in the works around the country. The report says that the first location opened in Los Angeles last year with the most recent opening a week ago.
The Amazon Fresh website says its existing locations are in California and Illinois.
Bloomberg described the Amazon Fresh stores as having "the polished concrete floors and industrial vibe of an upscale grocer," plus "digital price tags and smart 'Dash' shopping carts that tally up smaller purchases as customers browse the aisles."
A site plan submitted to Shelby Township shows the facade of a store that looks practically identical to other Amazon Fresh locations, but does not name the grocery store as the ultimate user.
Email: [email protected]
Desk: (313) 446-0412 (I still check this voicemail, even when WFH)
Twitter: @kirkpinhoCDB
March 24, 2021 at 01:43AM
https://www.crainsdetroit.com/voices-kirk-pinho/real-estate-insider-heres-why-amazon-fresh-location-hall-road-makes-dollars-and
Real Estate Insider: Here's why an Amazon Fresh location on Hall Road makes dollars and sense - Crain's Detroit Business
https://news.google.com/search?q=fresh&hl=en-US&gl=US&ceid=US:en
No comments:
Post a Comment