Trader Joe's to open Friday in the former Alabama Theater
Tuesday, September 18, 2012 | Updated: Wednesday, September 19, 2012 8:43am
Within a 2½-mile radius of the Trader Joe's that opens Friday in Montrose are three Krogers, two H-E-Bs, two Whole Foods Markets, a Central Market, a Costco, a Rice Epicurean and a Randalls.
That's how the California-based Trader Joe's likes it.
The competition is intense, but analysts say there is still room for the specialty grocer. Lots of people, they say, will continue to shop where they've always gone while making an extra trip to Trader Joe's.
"Trader Joe's loves crowded marketplaces," said Terrie Ellerbee, associate editor of the Shelby Report, a grocery trade publication. "It is a good fill-in store and a great place to get specialty items, but it won't take much away from traditional retailers in the marketplace."
Housed inside the historic art deco Alabama Theater building, Trader Joe's opens Friday at 8 a.m.
The company did its best to honor the building's past, regional vice president Greg Paquet said. More than 1,000 hours were put into refurbishing the ceiling, which has a large medallion.
The grocer also kept and rewired the theater marquee and preserved the balcony and mosaic tile floors at the entrance that were kept in place by the bookstore that previously occupied the theater.
Crews created faux movie posters to play on the building's past. They include "Gentlemen Prefer Blonde Ales," "Reservoir Hot Dogs" and "Pulpy Fiction." There's a genuine poster of Jack Benny's "Man About Town," the first movie the theater had in 1939.
Private labels
Trader Joe's sells gourmet and organic items, often value-priced, including prepared foods. The store also carries staples such as bread and milk, pet food and flowers. More than 80 percent of the products are private label.
But the store prides itself on its unusual items, such as chocolate-covered potato chips and, appropriate for the Montrose store, Trader Joe's Movie Theater Popcorn.
"Trader Joe's has done such a good job of differentiation that it doesn't really matter who the competition is," said Mark Hamstra, retail editor of trade publication Supermarket News.
"We like to think we simply add to the grocery landscape," Trader Joe's spokeswoman Alison Mochizuki said. "We don't worry too much about competition. We compete against ourselves, and our focus is constantly trying to get better at what we do."
Other grocers ready
Others say they're ready for the new arrival.
"There is a growing interest in natural and organic food in Houston, and we are excited to welcome other retailers," Whole Foods spokeswoman Mary Langdon said.
Whole Foods is the world's leading natural and organic grocer, she said, and it is increasingly focused on offering value. The stores are like a combination "farmer's market, specialty market, grocery, old-fashioned butcher, fishmonger, baker" and more, she said.
Scott McClelland, president of H-E-B, Houston, said competition brings low prices and makes grocers create unique reasons to shop with them. "For customers, it really comes down to a question of value, where can they get the best quality for the money spent," he said.
High-volume H-E-B stores, McClelland said, "have fresher perishables." Plus, he added, "We carry more variety across the store than our competitors, and we do this at low everyday prices. Because we're from Texas, we focus on buying from Texas suppliers."
Bill Breetz, president of Kroger Southwest, said customers are familiar - and happy - with what they find at his stores.
"We live in a market that favors competition, and the strongest thrive," Breetz said. "Kroger continues to remain a leader in the industry because our shoppers know us for service, freshness, good prices, and having fuel centers, pharmacies and an extensive variety."
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Houston Chronicle
