BLOG: The Disparities of Grocery Stores in Communities of Color: A Call for Innovation and Partnership

The Disparities of Grocery Stores in Communities of Color: A Call for Innovation and Partnership

As a real estate developer with deep roots in underserved communities, I’ve witnessed firsthand the challenges of attracting quality grocery stores to areas that need them the most. Despite the clear demand for access to fresh produce, healthy options, and everyday essentials, communities of color often find themselves in what’s known as “food deserts”—areas where access to affordable and nutritious food is scarce. These disparities in grocery store access are not just an inconvenience; they impact the health and well-being of families, the economic vitality of neighborhoods, and the overall quality of life for residents.

A critical issue we face in tackling this problem is the reluctance of many grocery store chains to expand into these communities. Our recent experience with Albertsons Stores (Tom Thumb), a respected grocery chain, highlighted just how tough it can be to convince stores to adapt to the realities of these markets. Despite securing a city incentive grant for a new 50,000 SF store at our Shops at RedBird development in Dallas, Tom Thumb opted not to proceed with the project. While their decision was based on concerns around sales performance and the community’s income demographics, I personally still firmly believe there was an opportunity to make it work if Albertsons had been willing to adjust their traditional approach.

I am convinced that the key to solving the grocery desert problem lies in partnerships—between developers, city governments, and grocery chains—and a willingness to be flexible and creative in store design, product offerings, and security solutions.

1) Adjusting Square Footage and Capital Investment: One of the primary barriers to grocery store expansion into underserved communities is the high capital investment and operational costs associated with traditional large-format stores. In many cases, grocery chains are hesitant to invest in locations where they perceive the return on investment will be low due to smaller customer bases or lower-income demographics.

Stores like ALDI USA, Sprouts Farmers Market, and Trader Joe's for instance, while smaller footprint than larger traditional grocers are still very successful at delivering a quality product to the communities where they are located. This nimble approach allowed the company to enter communities that otherwise might have been overlooked. An adjusted footprint can be a viable strategy for grocers willing to think outside the box and reduce upfront costs while still offering high-quality products to local residents.

As developers, it’s our responsibility to work with grocery chains to create a flexible, cost-effective model that makes sense for both sides. This may include reducing the square footage of the store or designing a layout that is more in line with the needs of the neighborhood.

2) Adjusting Product Offerings for Community Needs: While a traditional grocery store may carry a vast array of products, when operating in an underserved community, the priorities of consumers change. Access to fresh produce, healthy meats, prepared meals, and basic necessities should be prioritized over luxury or non-essential items. In these neighborhoods, families are more likely to need the basics—foods that help them meet their daily nutritional needs at a price they can afford.

Instead of focusing on upscale products, stores need to adjust their offerings to cater to what families actually need. Fresh fruits and vegetables, affordable protein sources, ready-to-eat meals, pantry staples, and household essentials should take precedence. By listening to the community and adjusting the product mix, stores can not only meet the immediate needs of residents but also build a loyal customer base.

3) Public Safety and Store Security Measures: One of the primary concerns for grocery stores in underserved communities is the potential for theft and vandalism, which can drive up costs and reduce profitability. But these challenges are not insurmountable. Grocery stores need to think creatively about how to secure their locations, protect their assets, and create an environment where both employees and customers feel safe.

This can be accomplished through partnerships with landlords and local law enforcement to implement robust security measures, including security cameras, visible patrols, and enhanced lighting. Additionally, adjusting store hours to match the needs of the community—keeping stores open during times when families need access but closing earlier in the evening—can also help mitigate security concerns.

Beyond store-specific solutions, we as developers also have a role to play in fostering safer, more vibrant environments. At our developments like the Shops at RedBird, Pasadena Square, and West Ridge former mall redevelopments, we invest heavily in public safety and infrastructure to create communities that are not only safe but appealing to businesses and consumers alike. By working to ensure that grocery stores are in well-lit, highly visible locations with strong security infrastructure, we can create the conditions necessary for stores to thrive.

Conclusion: A Call for Flexibility and Community Commitment: Successfully addressing the grocery desert issue requires more than just a city incentive grant or a developer’s vision. It takes a commitment from grocery store operators to be flexible, adapt to community needs, and take a creative approach to solving the challenges unique to these areas.

As a real estate development company focused on marginalized communities, we have a unique opportunity—and responsibility—to bridge the gap between grocery store chains, local governments, and the neighborhoods we serve. By working together, we can help create sustainable, healthy, and safe communities that attract grocery stores and other vital services.

In closing, I believe that a strategic mix of flexible store design, tailored product offerings, and robust public safety measures can make a significant difference in solving the grocery store disparity in communities of color. The onus is on us to be proactive, creative, and committed to the neighborhoods we develop for, ensuring that these communities are not only viable for grocery stores to operate but thrive in the long run.

Terrence Maiden, CEO, Russell Glen Company