Dive Brief:
- Wegmans plans to open a new supermarket in Manhattan during the second half of 2023, the East Coast grocery chain announced in a press release Thursday.
- The approximately 82,000-square-foot store, Wegmans' second New York City location, will occupy the street and lower levels of a landmark office tower at 770 Broadway in the city's Greenwich Village neighborhood.
- Wegmans' new store, its second in New York City, will sit at the former location of Manhattan's last Kmart store, which closed earlier this month.
Dive Insight:
Wegmans' decision to put down roots in Manhattan continues the century-old supermarket chain's effort to build its presence in the nation's largest urban area — and one of the most competitive grocery markets in the United States. The grocer made its debut in New York City in 2019, when it opened a 75,000-square-foot store at the Brooklyn Navy Yard.
Wegmans will face a diverse array of competition as it expands in New York City. Beyond national and regional grocery chains like Whole Foods, Trader Joe's and FreshDirect, the grocer will be going up against a large number of neighborhood grocers that enjoy strong relationships with the city's residents.
"Moving into a high-cost, high-profile location could be seen as a risk, but Wegmans has experience from its Brooklyn store which has been a big success," Neil Saunders, managing director of GlobalData Retail, wrote in an email. "This has given it the confidence to go into the heart of the Big Apple where its innovative products, strong focus on convenience foods and reputation for quality at reasonable prices will all serve it well."
Wegmans has signed a 30-year lease for the space it will turn into its new Manhattan supermarket over the next two years. The grocer bought out the lease for the former Kmart store that sat at the site until July 11 from Transformco, an entity formed to acquire assets from the bankrupt Sears Holding Corp., which ran retail locations under the Sears and Kmart brands. Earlier in its history, the building where the new Wegmans will be located was home to a store in the defunct Wanamaker's department store chain.
The store will occupy the base of an office tower redeveloped by Vornado, a large commercial landlord, into a hub for technology and media companies. The building, located just blocks from New York University and close to several subway stations, counts Facebook and Verizon among its tenants and will give Wegmans access to a large and affluent customer base.
Wegmans indicated in the press release that its experience with the company's store in Brooklyn and sense that New York is regaining momentum lost during the pandemic helped convince it to move into the city's core.
"This is something we've been dreaming about and working toward for a long time," Colleen Wegman, Wegmans' president and CEO, said in a statement. "The community's response to the opening of our Brooklyn store had an excitement and energy that you can only experience in New York City. You can feel that energy returning to the city, and we are thrilled to be a part of it."
