Vacant Buildings & High Grocery Prices

There is lots of grumbling these days by my neighbors about Neenah being a one-grocery-store-town. Neenah has the highest grocery prices in the Valley and arguably the worst service.

Neenah shoppers are correct in their observations about high prices and low service. Neenah’s two supermarkets – Copps and Pick ‘n Save – are both owned by the same outfit (Roundy’s). We also have a Wal-Mart but that is outside the category of a grocery store.

In the absence of any meaningful competition, the two grocery stores have ratcheted up prices and reduced staff. It is always annoying to read the specials advertised in the newspaper with the footnote “not available in Neenah.”

The most outrageous policy change that came a few weeks back involves the use of the “key card.” These are the cards that all supermarkets have adopted to track what you are buying so that can sell your name and information to other companies. The cards seem like an unwarranted invasion of privacy but you need them to take advantage of sale items. Wal-Mart, despite its shortcomings in some areas, doesn’t use key cards. Everyone can buy anything at the same price, no card required.

Most shoppers visit their supermarket multiple times each week. We get to know the cashiers and swap stories about our families and lives. We know each other. In the past, if you forgot your key card the cashier would swipe the store’s copy to give you the discount. You were a frequent shopper and the personal relationship built up over the years between customer and cashier was recognized by the person operating the cash register. The practice made one overlook the fact the supermarket was owned by an infamous Chicago corporate raider.

But that practice has ended. If you don’t have your key card with you, the cashiers are forbidden to use the store’s. Despite your longstanding patronage your are now required to pay the outrageous “no key card member” price as if you were some out-of-towner.

One explanation for the exorbitant and “sock it to ‘em” prices are the leases Roundy’s continues to pay on vacant buildings in Neenah.

Years ago Roundy’s bought out Kohl’s on Green Bay Road and moved its 65,000 SF Fox Point Pick ‘n Save into the Kohl’s building. Roundy’s continues to pay rent on the vacant Fox Point store and has rebuffed the efforts of other grocers to move into the vacant space.

Then there is the vacant Commercial Street Pick ‘n Save. When Roundy’s bought out Copps it quickly closed the Commercial Street store. Roundy’s also continues to pay rent on this vacant building and refuses to allow another grocer to move into it.

All told, the two vacant buildings amount to about 130,000 SF and cost the company over $1.5 million per year in lease payments. Obviously it is more profitable to pay rent on vacant buildings than it is to have a competitor in town.

Your faithful servant,

Silence