Local Startup Green's Grocery a Victim of Down Economy and Big Box Competition

 

Daring startup Greens’ Grocery and Café announced Monday afternoon they were shutting down.

Green’s opened in 2014 after a year of anticipation to great fanfare. The store was an eclectic mixture of two restaurants (a deli and sit-down diner), a bar, and a high-end grocery store with an exceptional meat market.

In Green’s management’s statement today, the owners state Green’s “could not withstand the economic hardships presented us.”

San Angelo’s economy is recoiled from the boom times of 2013 and 2014 when oil was $100 per barrel. Oil plummeted to the mid-20s last year, but has since stabilized in the mid-40s.

A beer wholesaler that spoke off the record said the population has decreased by approximately 30,000 people in the Midland-San Angelo axis since the oil bust. It’s his estimate based upon beer sales volume. Though this was far from their central business plan, Green’s attempted to position itself as a boutique store for craft beer where you can “build your own six pack.” More significant is the reduction of the region’s population since the peek of the oil boom.

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Above: The announcement that Green's is shutting down

Also facing Green’s was the onslaught of Walmart Neighborhood stores surrounding Green’s market area on Knickerbocker Road and Sherwood Way, and the opening of the third Walmart Super Center on S. Bryant Ave. earlier this year.

The final blow to Green’s owners and investors may have been Albertson’s move to counter the Walmart offensive. Albertsons sold its location at 3121 Sunset Dr. to United Supermarkets. United, the Lubbock-based grocer, transformed the boring old Albertsons grocery store into a hip and swanky Market Street targeting Green’s demographic.

The competition and down economy does not offer much opportunity to gain momentum.

Green’s announced on Facebook at 5 p.m. that it intends to remain open until most of its inventory is gone. Unofficial sources said the doors will likely close within two weeks.

Comments

Comments

Down economy my foot. How about ridiculous and outrageously over priced groceries trying to be sold in a low wage town. Went in one time, left with nothing and that was plenty for me. Hasta La Vista !!!

Not to mention, Green's employees (in uniform) buying large amounts of produce from H-E-B. What do you suppose they did with that.......other than mark it up a few bucks! Hahaha

Don't blame the "oil bust". Anyone with a lick of sense knows that so-called "oil booms" won't last. Get real, people. Everyone, except the few in the know, thinks they'll get rich from a boom, so, they over spend money they think they'll get. I remember headlines in the local rag saying shale oil would last for years to come. Well, duh!

Maybe they can build another Mexican food restaurant in its place(:

Off topic, but this comes up a LOT, so I'll address it here...

You might be surprised to learn that Albertson's acquired United. Yeah, it sounds backwards -- Albertson's was perpetually stuck in the 90's with outdated store layouts and dusty soup cans, and it seemed like it was hanging by a thread, doomed fall. But a press release from 2013 confirms it:
http://www.albertsons.com/albertsons-llc-to-acquire-united-supermarkets…. The FTC approved the deal in February 2014, worth $385M.

I grew up in Lubbock and visit there regularly, so I'm quite familiar with the traditional United Supermarkets stores as well as the newer Market Street stores. At the time that press release was posted, I remember thinking, "Oh no, Albertson's is going to ruin a great thing!" But actually, their intention after the acquisition was to implement the power of the Market Street braintrust to improve their own brand. Clever.

T R, Tue, 07/12/2016 - 18:25

Unfortunately everything was par or subpar but the meat. Nothing was so special there to justify much. Fake key lime pie....

About 2 months ago, I went into this business as I had not been there since they opened. I was somewhat amazed at the higher prices of their food products as compared to HEB, ALBERTSON'S, LOWES, & WALMART/SAM'S CLUB. Sadly, I left with nothing in my grocery basket. By their own admission, Green’s management’s stated The owners state "Green’s could not withstand the economic hardships presented us.” "San Angelo’s economy is recoiled from the boom times of 2013 and 2014 when oil was $100 per barrel. Oil plummeted to the mid-20s last year, but has since stabilized in the mid-40s." Understandably, Green's Grocery & Cafe was hoping to make profits off an economy related to an unpredictable oil boom. However, in a city that offers "low wages" in most all industries, competitive pricing is important. I do not like to see any business close and I had hopes that change would come about but it didn't. GREEN'S GROCERY closure was their doing and not the citizens of San Angelo, TX. Who or what will move into that location will be interesting. I would love to see a cafeteria style business open up locally, like "FURR'S or LUBY'S" but I know I'm just dreaming! "COMPETITIVE PRICES"

Evidently the residents of the Bluffs, Bentwood and Santa Rita have cut down on their spending in this uncertain economy. Depending on a certain wealthier demographic to keep in business is a risky venture all the the time. Walmart does well usually all the time because they serve people of all income levels. I wonder which business will decide to take a leap at that unlucky location.

I agree with you on this one, Joe. Just because someone can't afford to shop at a local store, or are envious, doesn't mean you have to be nasty and hateful.
The two months I was there last year, I couldn't afford to shop there, but I had a "someday" attitude.
Back to nasty and hateful. Do any of you ever have anything nice or positive to say? Are you that unhappy? Do you not have anything to do that will make someone else's life better? Hopefully without recognition.
Of my four girls, one shopped there and bought meals there. She is not wealthy, and does not live in Southland. She manages her money carefully, so she can have little luxuries. She will miss this business. I feel sad that they are closing.
It is a sad thing when others revel in another person's sadness, and it seems that is all that most of you do. You should be ashamed of yourselves.
Now go and do something to make someone else's life better, and don't make a big deal of it.

Hey, it's not our fault when they priced their stuff 2 and 3 times higher than can be bought elsewhere in town..... They own this one for having a pipe dream that minimum wage earners would form lines outside waiting to come in and do their shopping.........

They might not have catered to the average person, but it's never a bad idea to figure out a way to get rich people to give you their money. If more San Angelo and would do that, on the whole, everyone would be a lot richer.

Only problem with your theory is that apparently not enough rich people gave them their money by shopping there, if they had, they'd still be in business.

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