July 7, 2007

Kroger in, Farmer Jack out

New stores open as venerable chain fades out

Jennifer Youssef and Nathan Hurst / The Detroit News

GROSSE POINTE WOODS -- Six former Farmer Jack grocery stores were resurrected as Kroger supermarkets Friday, as the venerable Farmer Jack chain ended more than seven decades of business in Metro Detroit this week and Kroger cemented its dominance in the local grocery market.

The Great Atlantic & Pacific Tea Co. is closing all 66 of its Farmer Jack locations in southeast Michigan by today and has been working with several buyers to take over stores. Cincinnati-based Kroger has purchased 20 Farmer Jack locations in all.

"I'm very happy," said Sara Sieders, as she scrutinized produce inside the gleaming 45,000-square-foot store on Mack Avenue in Grosse Pointe Woods. Sieders had been to the store a few times when it was Farmer Jack, but prefers shopping at Kroger because the food "is fresher and less expensive."

"I'm a Kroger girl," she said.

In addition to the 20 Farmer Jacks that Kroger bought, 15 others, including two in the city of Detroit, were bought by independent grocers, 10 were bought by smaller grocery chains and 21 closed.

It marks the end of the Farmer Jack moniker, which had been a fixture in Metro Detroit since the mid-1960s. The company, which traces its roots to a neighborhood grocer in 1920s Detroit, was purchased by A&P in 1989. A&P announced its plans to sell the chain in April to concentrate on its northeast U.S. operations.

The other Kroger stores that opened Friday were in Northville Township, Brownstown Township, Troy, Dearborn and Hartland. Kroger will reopen six more former Farmer Jack stores on July 13 in Westland, Sterling Heights, Algonac, Roseville, Romeo and Imlay City.

The opening dates for the other eight stores Kroger is taking over still haven't been set, but company spokeswoman Meghan Glynn said those remaining locations will open after the company has connected new registers to the Kroger's network and replaced signage.

The end of Farmer Jack came as no surprise to some industry analysts.

"For all practical purposes, those stores were closed anyway," analyst David Livingston said. "Farmer Jack was doing such a low volume. The existing stores were barely even doing that -- existing."

Analysts said Farmer Jack consistently lagged other chains in Metro Detroit, including rival Kroger. Farmer Jack also suffered from the proliferation of big box discounters such as Meijer and Costco. "Farmer Jack was stuck in the past in terms of quality, merchandising and pricing," said Ken Dalto, a Farmington Hills-based retail consultant. "A&P never gave its Michigan stores the type of attention they needed to do well. Customers noticed they didn't move beyond 20 years ago."

Shoppers thankful to still have a nearby supermarket flocked to the Grosse Pointe Woods store Friday. They had been forced to buy their groceries elsewhere for a week as Kroger cleaned up the store, restocked the shelves and hung new signs.

Store manager Paul Stavale was pleased with the turnout of about 500 customers in the first four hours Friday morning.

As Kroger continues its transformation of the former Farmer Jacks, other Metro Detroit grocery operators also will be remaking locations into their own stores.

Jamal Abro, owner of Mike's Fresh Market on Gratiot just north of Seven Mile, confirmed Friday he had purchased the Farmer Jack location at Seven Mile and Livernois. He said crews will renovate most of the store, installing new fixtures, equipment and cash registers, and he plans to open within four to six weeks.

He expects the store will employ more than 30 employees.

"I'm very excited at this opportunity," Abro said. "I'm going to prove to area residents they don't have to cross Eight Mile to get good groceries."

What happened to your Farmer Jack
Of the 66 Farmer Jack stores, 45 were sold and 21 closed by Great Atlantic & Pacific Tea Co.
Bought by Kroger
Reopened Friday