Bates: City needs another grocery store, not pharmacy

December 14, 2011 12:47 pm by Frances Dinkelspiel

When the Andronico's on Telegraph closes, city officials are hoping the building's owner will rent to another grocery store

City officials are lobbying the owners of the soon-to-be-vacated Andronico’s on Telegraph to rent the building to another grocery chain rather than a pharmacy.

Mayor Tom Bates sent a letter on Dec. 1 to the Conference Claimants Endowment Board, the fund that owns the property at 2655 Telegraph, urging its administrator to find a tenant that will “serve the Berkeley community.”

The endowment board had been ready to sign a lease with CVS pharmacy, but agreed to consider an offer from a grocery chain, said Bates.

“I indicated to them it would be wonderful to have a grocery store there,” said Bates. “They indicated to me they had concerns about the viability of a grocery store in that location because of the competition from Berkeley Bowl and Whole Foods. They … told me they would consider it.”

City officials think that a grocery store at the south end of Telegraph will have a better chance of drawing students from UC Berkeley than a pharmacy, and that the student traffic can help improve business all along Telegraph Avenue.

To make that point, Bates argued in the letter that the population in the census tracts right around the site on Telegraph had grown dramatically in the last 10 years and could support a grocery store. The census tract population right around the store went from 5,047 people in 2000 to 5,569 in 2010, and the adjacent tract increased from 5,475 to 8,368 people in that same period, Bates wrote.

“In a recent survey conducted by UCB graduate students of more than 1,800 students, 78.5% expressed a desire for a grocery store on Telegraph Avenue,” Bates wrote. “Most undergraduate students at the University of California do not own a car and having an affordable grocery store within walking distance fills a real need.”

Representatives from Fresh & Easy, a British grocery chain, which is a lower-priced chain than Andronico’s, have expressed an interest in the site, said Bates. He thinks that kind of store would be more attractive to students than Andronico’s proved to be.

Since Berkeley does not have any big-box stores, the pharmacy chains CVS and Walgreen’s have been rapidly opening new outlets throughout Berkeley, sometimes even across the street from one another. As soon as one store opens, its competitor seeks to open another nearby. Rather than bring additional tax revenue to the city, officials thinks the plethora of stores just cannibalize one another.

Pharmacies now sell much more than just cosmetics and medicine. The trend is to offer items that will entice people to come by often, such as fresh food and milk. A number of pharmacies in Berkeley are either selling or are trying to sell, alcohol.

The Walgreen’s on Oregon, right across the street from Berkeley Bowl, was denied a permit to sell alcohol. It appealed that denial but withdrew the appeal last week, said Bates.

The reverse is also true. Large grocery stores, such as Safeway, are installing pharmacy departments. The Safeway on College near Claremont recently purchased the family owned Chimes Pharmacy on College as part of its long-term strategy to increase the size of the store.

Bates has asked city staff to look into drawing up a measure that would prohibit new pharmacies from opening up within 1,000 feet of an existing pharmacy.

Bates is not against pharmacies, he just wants to lure in new business, if possible. He would prefer to see a CVS store at the old Andronico’s location rather than leaving it vacant, he said.

The Conference Claimants Endowment Board, which was set up to support retired Methodist clergy. Its mission is to maximize revenue from its properties.

Related:
Infusion of money should spiff up remaining Andronico’s [11.30.11] 
Andronico’s on Telegraph Avenue to close [11.25.11]
As Andronico’s on University closes, huge sale in progress [10.25.11]
Andronico’s to shutter University Avenue store [ 10.17.11]
Andronico’s and A.G. Ferrari saved from the brink [10.12.11]
Andronico’s files for bankruptcy [08.22.11]
Safeway buys Chimes Pharmacy to consolidate [07.12.11]
Andronico’s plans recapitalization with new lenders and investors [05.25.11]
Four Berkeley Andronico’s face difficult conditions [05.24.11]
A.G. Ferrari closes Berkeley store, company bankrupt [04.05.11]
Will pharmacy war lead to new restrictions in Berkeley? [04.18.11]

47 Comments

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  • Berkeley Resident

    And what about the Andornico’s on University?  What is happening with that space.  I really hope it doesn’t sit vacant for too long.

  • Berkeleyborn123

    The university avenue store should be converted to apartments/condos-there are plenty of grocery stores in Berkeley, but not enough places to live..

  • Chris23

    The mayor’s opinions shouldn’t get such a high weight. He & the rest of the political class have been screwing up business in Berkeley for years. Let businesses open, and either find customers or fail. That’s better than empty store fronts and having to drive to another town to get things.

  • Akmonday

    enough with the walgreens and CVSs. there are hundreds of them in town. Walgreens in particular is just a terrible drug store; CVS is a little better, but still.

  • Saabmama

    It’s census “tract” not “track. 

  • Dia

    There are no grocery stores in walking distance of that area now. Maybe there are plenty of grocery stores if you are mobile/have a car, but plenty of people in the area do not fit that description. Another grocery store is very much needed.

  • Meliflaw

    Agreed. And one that’s more affordable and practical than Android’s, with the little gourmet treats at every check-out stand and the outrageously expensive organic produce. I like the idea of a local chain, but couldn’t bring myself to shop there much.

  • EBGuy

    “The census track population right around the store went from 5,047
    people in 2000 to 5,569 in 2010″
    For the record, the 2010 population for census tract 4236.02 should be  5,659, not 5,569 (even more potential shoppers.)  BTW, look like census(dot)gov now has graphical data posted to the block level for 2010 (as well as 2000, though that interface leaves a lot to be desired).  I’ll try to dig around to see where all the new (undercounted in 2000?) Berkeley citizens are located. As Bates mentioned, there was a gain of almost 3000 people (students) in census tract 4228 just south of the campus.

  • EBGuy

    Looks like census tract 4227 (just south of the stadium) went from 3,788 to  4,885 people (mostly students I assume).

  • megan

    The mayor is representing the needs of the neighborhood residents, and I thank him for it.  For those of us who live nearby and don’t have cars, the lack of a neighborhood grocer is a major quality of life issue.  There are many young college women who walk to the store, and walking at night to Berkeley Bowl is a safety concern. You either have to go through poorly lit neighborhood streets, or walk down that creepy stretch of Shattuck south of Parker.  I shopped at Andronico’s regularly, despite the higher prices, for this reason.  I would continue to support a neighborhood grocery store, while I would never shop at a CVS.  There are already more pharmacies than needed in the vicinity.    

  • Frances Dinkelspiel

    Thanks for catching that.

  • EBGuy

    Here’s some data suggestive of a student undercount in 2000.  Census tract 4225 (just north of campus) went from 3733 people to 4658 people in 2010.   I don’t believe much housing stock was added in that area, so the two conclusions you can draw are either that the students were undercounted in 2000, or that students are now doubling up to be closer to campus (due to increased rental costs).

  • Guest

    A large number of Cal students live near this Andronico’s location. It would have made sense for Andronico’s management to cater more towards the students. But instead, they focused on a limited selection with high prices and kept the students away. What we need here is a discount grocery chain like Safeway.

    Ever notice how all the Cal students wait next to a #51B bus stop to get to Safeway in Oakland? So many of them are crossing the city border to buy groceries, even though they live next to the Andronico’s. For students the lure of the cheaper prices at Safeway made up for inconvenience of taking the bus/driving over. Andronico’s location is very convenient to campus but so few students actually shopped there.

    A 24/7 Safeway location would really make sense here. Students would frequent the area even late at night and might encourage more business along the lower part of Telegraph Ave. However, if opening up a grocery store here means staring at a blighted storefront for a decade let’s just open a pharmacy if it’ll be quicker.

  • Guest

    Frankly, I’m delighted to hear that anyone’s interested in the space. Living one block away from the store, I’m concerned about the parking lot becoming a gigantic homeless encampment. I hope the city government will be reasonable in their permitting processes, etc so it doesn’t sit empty for long.

  • Alan Tobey

    Love the unconscious editorial statement in the photo:  only one car in the parking lot, but it’s a Prius.

  • http://berkeley.accountableschools.com/ Berkeley Accountable Schools

    Be not afraid, they’re enjoying camping in our parks instead.

  • Irisandjules

    I am surprised Andronico’s survived as long as it did. When I moved to Berkeley in 2002, the Telegraph store was the closest to my house, then WF, then Berkeley Bowl. In my opinion, nothing much really competes with Berkeley Bowl – I found Andronico’s to be expensive (more than WF), with inferior fruits and vegetables – a horror of a store really. The students that walk to Andronicos could easily walk to Berkeley Bowl or bike. But thinking of something cheaper – I checked out a Fresh and Easy in Danville – that might be student friendly. But really nothings beats Berkeley Bowl. I would agree that that local has tough competition from Berkeley Bowl and Whole Foods – so the store would have to be cheaper with decent stuff.

  • Guest

    As much as I don’t like Safeway, I completely agree with this.  It’ll be hard to get them in there, though, with them planning to expand the College & Claremont location.

  • kim

    I completely agree.  There is so much neighborhood opposition to the (expansion of the) Safeway on College … I’d imagine that demographically, Safeway would be a better fit closer to students at the Antronico’s site and benefit the neighborhood.

  • John

    How about a second Monterey Market location?

  • Iancrew

    I just sent off a note to my city council member (Linda Maio ) to see if she had any news on the University Ave site.  I’d suggest you do the same with your council member, whether it’s Ms. Maio, or someone else.  In theory at least, the more our representatives hear from us about this issue, the more motivated they’ll be to do something about it…..

  • TN

    I don’t see why this should be an either or issue.

    I don’t know what current zoning allows but it seems reasonable to have both a grocery and housing on the same site.

    This site is well located on a major street with bus service. It is within a few blocks of the North Berkeley BART station. When we used to shop at Andronico’s in the late afternoon, we used to see BART commuters walking home, stop by to shop. There are other shops and services on the same block.

    Of course developing a multi-use project would take years. Having the store vacant so long might not be worth it.

  • the deer!

    Stunned. How have I missed the signs that this branch was closing? I have shopped there for 30 years! I thought that they were only axing the University strore. This is sooooo sad!

  • the deer!

    whole foods is the most expensive, and lately the produce (I only buy organic) at Andronicos had been much better, with a lot more Gluten Free also, the gourmet, euro and uk products in stock, and far cheaper than Whole Foods. Really nice workers as well. So, is the Cedar and Shattuck store closing as well? I think I missed the closing signs on Telegraph since it was so hard to get through due to the Fire up at Haste, and all of the redirected traffic. 

  • Berkeley Resident

    I haven’t seen a Fresh and Easy but that might be a good option for students as well.  Maybe the Telegraph location can become a Fresh and Easy and the University location can get something like a small Berkeley Bowl or Monterey Market!

  • Jsch0602

    Why doesn’t Bates open a grocery store rather than telling others what to do?

  • Haselstein

    We really miss the Andronico’s on University. For one thing, the Wells Fargo was a convenience; also, the grocery stayed open later than Berkeley Bowl and had products we couldn’t get at Trader Joe’s. Friends of ours miss the store, too; they say they have to go up to Telegraph now. 

  • http://berkeley.accountableschools.com/ Berkeley Accountable Schools

    Seriously, that is exactly what should go in both old locations.  Also another Tokyo Fish, but maybe that doesn’t scale.

  • Greg Merritt

    Imagine a Yasai market, a bakery, and (if you must) a butcher in every neighborhood.

  • Food Shopper

    Fresh & Easy would be great.  They are part of Tesco, a large UK-based supermarket company.  

    If Monterey Market could finance and source another store, that would be great, too.

  • KT

    We really need a grocery store at the University site.  I think that should be a higher priority than the Telegraph store which is a stones throw from both Berkeley Bowl and Whole Foods.

  • Berkeleyborn123

    Trader joes is only 4.5 blocks away from the closed university andronicos. I doubt any store will ever open there and try to go head to head with tj’s. Grocery stores don’t open for people’s convenience, they open to make a profit, which andronicos could not at the university site…

  • Anonymous

    I have heard a dollar store, pharmacy, or gym. Three things this town does not need and has way too many of.

  • Anonymous

    You are living under a rock. Consider moving from your rock to one of the dozens of multi-unit dwellings.

  • Anonymous

    Mi Tierra and Mi Ranchito are within walkin distance of the University Ave site, arent they?

    Certainly theres a large amount of people who were within walking distance of both. People closer to (or across) Sacramento Street have a bit of a hike now, i will admit. But a smaller grocery like the ones i just mentioned are all that can be hoped for, there isnt the market for another large supermarket.

  • guest

    To live on top of all those empty stores? 

  • Guest

    The owners of the Andronico’s space don’t seem to understand that Whole Foods and Berkeley Bowl aren’t cheap grocery stores (excepting produce at Berkeley Bowl), and that’s a gaping hole in the Southside community.

  • Guest

    I’ll live without a grossly overpriced store that had moved to specializing in booze in the last year.

  • http://radar.oreilly.com/2007/09/local-recycle-reuse-hits-a-bur.html The Sharkey

    Who cares what they’re on top of?

    The point is that housing in Berkeley is much more plentiful than grocery stores.

  • http://radar.oreilly.com/2007/09/local-recycle-reuse-hits-a-bur.html The Sharkey

    Considering how much hell Berkeley has given Safeway about remodeling their store on Shattuck, and how much hell they’re getting about their plans to remodel their store in Rockridge, I’m not sure they’d be all that interested in expanding their business in the area.

  • http://radar.oreilly.com/2007/09/local-recycle-reuse-hits-a-bur.html The Sharkey

    Normally I’d agree with you, but he’s right on this one.
    The last thing we need in that location is another RiteAid/CVS.

  • LE

    The Telegraph location is large enough to split the space
    between CVS and something like Fresh & Easy or Sprouts Farmers Market.  A similar set-up was recently opened on 32nd
    Avenue and Clement in San
    Francisco and seems to be working out.  I do think an affordable grocery store is
    needed on Telegraph and would do very well. 
    Andronico’s was just too expensive for the local residents near the
    campus (and just about everybody else!). 

  • http://radar.oreilly.com/2007/09/local-recycle-reuse-hits-a-bur.html The Sharkey

    Maybe this is crazy, but what about  putting a 99 Ranch there?
    I know there’s already one in Richmond (I go there all the time) but Berkeley could really use a large Asian grocery store.

    http://www.99ranch.com/

  • Chamelean75

    I live almost across the street from the closed Andronicos on Telegraph.  I would love to have a cheaper grocery store there.  In all honesty, for both middle income residents and students, both Whole Foods AND Berkeley Bowl are pretty expensive.  I don’t want a CVS there.  I want a grocery store cheaper than Berkeley Bowl there.

  • Mitch

    This blog says CVS and Fresh & Easy are thinking about splitting the Andronico’s building in half like they did with the Albertsons at 32nd and Clement in San Francisco http://freshneasybuzz.blogspot.com/search?q=Andronico%27s.

    They have a floor plan, pics about the 32nd and Clement CVS and Fresh & Easy at this link http://freshneasybuzz.blogspot.com/search/label/32nd%20Clement.

    I’ve been in the Fresh and Easy and CVS in the Outer Richmond. There is plenty of room in the Andronico’s to do the same.

    They also mention Sprouts Farmers Market and Sunflower http://freshneasybuzz.blogspot.com/search?q=Andronico%27s. Bates should contact them. They are opening stores all over Northern California.

    I live near the Andronico’s on Telegraph and would like to see a grocery market in the building. I agree good prices are important. Sprouts and Sunflower are cheaper then Whole Foods. No dollar stores please.

  • Berkeley Resident

    And they can do the same on University.
    We really can’t afford another empty space on this part of University!

  • Anonymous

    Mi Tierra does not sell organic goods. Mi Ranchito does, but rarely fresh. Trader Joes sells produce in packaging and I won’t buy that (and I know I’m not the only one). University Ave needs a Safeway.