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Schnucks to start downtown construction

Written on January 29, 2009

Schnuck Markets Inc. will start construction on its upscale grocery in downtown St. Louis on Wednesday, providing a ray of hope among merchants who are currently struggling to attract customers.

"I think this will start breathing some life into downtown," said Sarah Coffin, professor of public policy studies at St. Louis University.

The timing is particularly important as a new stream of retail is now developing within blocks of the planned market at 315 North Ninth Street. Nearby, Left Bank Books and Charm jewelry boutique opened late last year, and a wine bar is set to open in late spring next to the bookstore. And in the summer, 20,000 square feet of retail space will be available in the Syndicate Building at 10th and Olive, said Craig Heller, owner and managing partner of LoftWorks, the building’s developer. He said his group is in talks with five potential retailers.

"(The store openings) will clearly change the face of the neighborhood," Heller said.

Schnuck’s decision to locate on Ninth Street not only adds services that will make downtown more attractive to potential residents and shoppers, it marks a vote of confidence by a large and successful grocery chain, experts said.

"The fact it’s such a highly visible project makes it even more important," said Jim Cloar, executive director of the Downtown St. Louis Partnership.

Last February, Schnuck Markets announced it would open the two-level downtown store in late 2008 or early 2009. However, the new completion date is set for some time this summer.

The planning process — not the tough economy — delayed construction of the downtown location, said Lori Willis, a spokeswoman for the Maryland Heights-based chain.

"It’s a challenging store for us to build," she said. "The two-story format is a departure from any store we’ve built before."

The store, which will occupy the ground floor of the Ninth Street Garage at Olive Street, will feature an overhead mezzanine with an extensive wine department and eating space.

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At 20,800 square feet, the downtown Schnucks market will be smaller than a typical 63,000-square-foot grocery. But it will be a full-service store with amenities aimed at nearby loft residents, many of whom are affluent, and daytime office workers.

About 29 percent of downtown residents earn between $100,000 and $200,000, according to a 2007 survey by the Downtown St. Louis Partnership. There are about 11,000 people living downtown now, the partnership said.

This presents a different kind of market for Schnucks, with many shoppers who will be walking rather than driving, Coffin said. There also will be fewer shoppers with small children.

"You won’t see piled-up grocery carts. This will be more convenience shopping by urban dwellers looking for more upscale offerings," she said. "It’s always a challenge when you’re thinking outside the box. There’s always a learning curve."

Survival downtown hasn’t been easy for many retailers in the past year. Several businesses, including restaurants Beso Mexican Grill and Zaytoon opened and shuttered in 2008. Delmar Loop-based furniture store Good Works closed its downtown location in June after only eight months because of a lack of customers.

With the new Schnucks going up, City Grocers — at 10th and Olive — will have to change its focus, said Heller, an owner of the gourmet market. The 6,500-square-foot shop already canceled plans to expand into a 14,000-square-foot space adjacent to the Schnucks location.

"City Grocers will evolve with more emphasis on deli and prepared foods," he said.

"There will be more speciality foods but not things like Wheaties."

gappleson@post-dispatch.com | 314-340-8331

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