Supermarkets in malls proving to be a win-win

Here in Greater Philadelphia, we are getting used to having supermarkets at the mall (Wegmans in Montgomeryville, Whole Foods in Plymouth Meeting, Sprouts coming to Moorestown...), but it's still a new concept in many parts of the county. Industry analysts believe we will see several more supermarkets lease space in malls in the coming years.

"With the fast-paced nature of America, shoppers want to be as efficient as possible when running errands," said Displaydata Marketing Director Paul Milner. "Grocery stores in malls could give Americans the benefit of a one-stop shop for all of their needs... This transition is another step towards providing shoppers with the advanced and friction-less shopping experience that the American consumer demands."

Milner also sees supermarkets in malls as a winning proposition for landlords. Mall owners, often stuck with a declining retail property, can transform their asset into a destination allowing consumers to complete all of their shopping in one place. He warns, though, that parking could be a deterrent if shoppers have to carry their groceries too far.

Wegmans updates pubs, lets servers accept tips

Wegmans announced last month that it had reopened two of its restaurants - in Collegeville and Malvern, PA - with "refreshed decor and an updated menu." The restaurants, each known as The Pub at Wegmans, will also now let servers accept tips. Overall, Wegmans operates five pubs and tips had been allowed at the others, which include King of Prussia and Montgomeryville.

Not sure this is really news, and if you read this, that's about 30 seconds that you won't get back. Other blog posts are a bit more informative, I promise.

Wegmans opens in Montgomeryville, PA

Not surprisingly, the new Wegmans at the Montgomery Mall in Montgomeryville, which is part of Montgomery Township in Montgomery County (I couldn't resist) opened to a big crowd last Sunday. According to The Reporter, more than 1,000 people were outside the store by 6:45am waiting for it to open.

The 126,000 square foot store is open 24 hours a day and includes a restaurant/bar, deli, coffee shop, seafood section, cheese shop, floral department, hot foods buffet, bakery, sushi, sub shop and organic salad bar. The store, located where Boscov's used to be, hired approximately 500 local workers.

Wegmans now has 16 Pennsylvania stores and 84 overall.

Wegmans MA store (70,000 SF) to be smallest in a decade

Last Monday, Wegmans announced that its upcoming store in Newton, MA (a densely-populated suburb that borders Boston), planned for 70,000 SF, will be its smallest in a decade. By comparison, the nearby Northborough, MA location is 138,000 SF, and the store recently announced for Montgomeryville, PA will be 120,000 SF.

A Wegmans spokesperson said the 70,000 SF footprint represents a new design and concept for the company. The store will anchor Chestnut Hill Square, a complex with 160,000 SF of shops, offices and luxury residences.

The Northborough store, which opened in October, had more than 25,000 local shoppers sign up for a Wegmans discount card before the supermarket even opened. According to the publisher of The Griffin Report of Food Marketing, Wegmans plans to open six or seven stores in a short period of time across New England.

At 70,000 SF, this "small" Wegmans will still be larger than most Stop & Shop markets, which are typically about 60,000 SF. Stop & Shop New England (a division of Ahold USA; same parent company as Giant) has more than 200 locations throughout MA, NH, CT and RI.

Wegmans to open store in Montgomeryville, PA

Simon Property Group, owner of the Montgomery Mall in Montgomeryville, PA, announced yesterday that it has signed an agreement with Wegmans to open in the former Boscov's space. According to Wegmans, the Boscov's space will be demolished, and the supermarket will be built in its place but will not connect to the mall. A timeframe hasn't been announced.

A Wegmans representative stated that the company opens three stores per year, and 2012 will see the opening of the King of Prussia store (in April) plus two stores in Maryland.

The manager of the Montgomery Mall said the Wegmans store will be approximately 140,000 square feet, and will also be the first Wegmans to open at a Simon property.

Assuming the King of Prussia store opens on schedule, the Montgomeryville store will be Wegmans 16th in Pennsylvania.