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Market Place for Sale: Owner 'Just Can't Compete'

The Lincoln Park independent grocery store’s owner says it’s hard to compete with Trader Joe’s Walmart, as well as the upcoming Walgreens, so he's putting The Market Place up for sale.

Independent grocery store The Market Place is up for sale after national food retailers like Trader Joe’s, Walmart and the upcoming Walgreens moved in just blocks away, the store’s owner confirms.

Peter Stellas, the grandson of the grocery store’s founder, says he started seriously considering the sale about six months ago when news about North Broadway’s Walmart Neighborhood Market broke. The controversial store is what Stellas cites as the final straw.

“I told Alderman Tunney that Walmart is going to [expletive] rape the neighborhood,” Stellas said. “… Since the Walmart opened, it’s absolutely had an effect on my decision.”

Located in Lincoln Park at 521 W. Diversey Pkwy, the grocery store could be sold in a multitude of ways, Stellas says. While The Market Place is on the market, he’s still not sure whether he’ll sell the almost 13,000-square-foot parking lot or the nearly 17,000-square-foot store as one deal or independently.

Leasing the storefront out to a new tenant is also an option.

The deal will have to be right, Stellas says, meaning if the right proposal doesn’t come along, The Market Place will remain open. And that might be good news for neighbors searching for a “full service” grocery store.

"We were on a comeback from Trader Joe’s opening, but with Walmart and now Walgreens coming in, we just can’t compete. … Seriously, those stores suck."

While Trader Joe’s, Walmart and the new flagship Walgreens—slated to open around Labor Day—all sell groceries, Stellas points out their flaws. The Market Place is the only store with a traditional deli where meat is prepared fresh daily, and it’s the only place offering gourmet pre-prepared food.

But with neighbors and Ald. Tom Tunney (44th) still hoping for a Mariano’s Fresh Market at 3030 N. Broadway, locally owned stores like The Market Place may on its last leg.

“Walmart is not a full service grocery store, so I think this just confirms that the Mariano’s development is still going to be a need for the neighborhood,” Lakeview East Chamber of Commerce Director Maureen Martino said. “We certainly still have Treasure Island that’s locally owned.”

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Stellas, who’s managed the grocery store since 1984, says he’s always entertained the option to sell The Market Place, but with the onslaught of new, big-box competitors, he can’t compete. He said he’s hoping neighbors will make the choice to shop local, effectively keeping the store alive.

“We’re the oldest independent grocery store in Chicago,” Stellas said. “We’ve been in business since 1927, before Treasure Island. We were on a comeback from Trader Joe’s opening, but with Walmart and now Walgreens coming in, we just can’t compete. … Seriously, those stores suck.”

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Gloria Picchetti February 22, 2013 at 03:01 pm
Ron, I agree with you.
gerald spencer February 22, 2013 at 04:10 pm
I always considered "convenience stores" to have prices associated with "convenience." Now Market Place is a convenience store; it didn't start that way but, in effect, it is. If the prices are higher at Market Place, you are paying for your convenience. Your convenience should always have a price, you are the one who should pay for your conveniene, not some one else paying for you. I look at this like I look at "Farmers' Markets," I don't know who started the lame brain idea that they were going to be cheaper than buying anywhere else. They were never about cheap, they were about fresh and local; that is why it got to be illegal to sell produce purchased at Dominick's at a farmers' market. Fortunately or unfortunately, there is no "Neighborhood Franchise" concept for food markets, no one says, "I am here first, no one else can come into my neighborhood." We tried that with cable television, it doesn't work. Sadly, business is like that summer childhood lemonade stand, there is no fighting the fact that each of your neighbors might start one and there is not price setting.
The Truth February 22, 2013 at 05:40 pm
Lube was too expensive at the Hustler store even with the fancy/schmanzy credit card coupon they mailed out. They didn't make it either.
There might be some "rich" people in Lakeview but in 7 years I didn't meet one person that wasn't hustling (no pun intended) 2 or even 3 jobs just to say they live in Chicago and eat at all those subpar restaurants, etc. .........unless they were DINKS (and THEY were barely making it with one being unemployed after 15 years with a major company in the Loop).
The Truth February 22, 2013 at 05:42 pm
Yeah, classic. A product of the environment.
The Truth February 22, 2013 at 05:43 pm
The Walmart near Addison is always bustling for some reason or another. I'll bet it's because they have a better selection than that "south" side one on Broadway. ;/
Link N. Parker February 22, 2013 at 07:54 pm
Actually if im not mistaken, this place was robbed last summer.
PaulA60657 February 22, 2013 at 08:07 pm
Hustler made a mistake by just opening their little shop without doing research in the area. They HAD to add a gay section to the store weeks after they opened. I dont know if that had anything to do with my friend and I when we went in and asked where it was. Even the employees were not sure why they opened in this location. Atleast the Pleasure Chest already knew the 'hood! LOL
Link N. Parker February 22, 2013 at 08:09 pm
I have lots of memories of this place from over the 14 years I have lived here. This place served a purpose for a long long time, but unfortunately, times change, neighborhood change, and markets in general, change. The consumer marketplace has changed, and people want more than the typical stuff you can get at places like Jewel. This store sells really the same crap that Walmart market sells - garbage loaded with HFCS, non-organic frozen foods, etc. MarketPlace didnt adapt quickly enough and now other companies are eating him up. And it is true, the employees there were not usually that friendly. And after the Dominicks fire, i remember the employees mentioning that the owner was gloating about having a near-monopoly on gorceries in the area. They may have just been saying that, and so I cant directly accuse the owner of that, but it is something to think about.
Link N. Parker February 22, 2013 at 08:59 pm
i agree, that shutting down the Red Line will cause the crime to drop somewhat, as the kids that cause most of the trouble will not be able to come up, for the reasons you mentioned. And, I had also noticed that a lot of the crimes that were happening recently were being comitted by thugs that jump out of a car, commit the robbery, and then jump back in the car and take off. I think that will change big time when concealed carry goes into effect here in IL very soon. Not that everyone is going to carry, but the criminals will find out soon enough, that their days of easy targets are OVER.
Justa Localguy February 22, 2013 at 09:23 pm
This is a shame. A third generation locally owned business run out of the 'hood. This - and some of the comments above - do not make me proud to be a Lincoln Parker.
Ray February 22, 2013 at 10:47 pm
I encourage you to shop carefully. While some prices are higher at Market Place and other indi stores, sometimes Walmart plays with package size to display lower prices. I've seen products at TI in 16 oz packages that were cheaper at Walmart, but the Walmart size was 14 oz. Walmart has the scale to get manufacturers to make special products and custom sizes. When I was in garden furniture business I used to pay a higher price for Weber 18" BBQ grills than Walmart sold them for. I asked Weber about it at a trade show, he showed me what I buy and what Walmart buys side by side. They were identical until you lifted them. It turns out the Walmart Weber BBQ was made from a thinner guage steel to meet Walmart's price point and would likely not last as long as the 'standard' Weber BBQ. Might there be a quality difference in food products to meet Walmart price points? I don't know, but I would not be suprised. Sometimes you get what you pay for.
The Truth February 22, 2013 at 11:30 pm
"Chains" have standards. What's the average life of a roach infested store in Uptown? I've yet to see a rat in Target. Borders (that was supposed to be the "anchor" to "revitalize" Uptown) got, well, boarded up. Ironic.
Link N. Parker February 22, 2013 at 11:30 pm
"Run out of the hood"...no one is running him out but himself. If he cannot compete - if he cannot change his product mix when consumers want different types of products, then the Laws of Economics (which are natural laws, like the laws of physics, spply and demand cannot be revoked by mere mortals) dictate that he will not survive.
When I was a child, there was a typewriter store down the street. Should the owner of the typewriter store stay in business, even though nobody wants typewriters anymore? Business owners have to change with the times. It's nothing personal.
The Truth February 22, 2013 at 11:32 pm
Gays love Larry Flynt for his "liberalism" though.
Boystown Barry February 22, 2013 at 11:34 pm
The management of the WalMart at Broadway & Patterson should be terminated immediately for complete failure to provide the most basic elements a customer expects.
A few examples: (1) For over a month the store only has 2 baskets for the whole store. While they do have large and mid-sized push-carts, their complete inventory of baskets has disappeared & no effort has been made to get new baskets from Bentonville despite many polite appeals to management. (2) One checkout register open, a long line waiting (and due to the lack of baskets, people are uncomfortably holding their groceries in their arms) & no effort to open another register. Despite countless employees loitering in & obstructing the aisles doing seemingly nothing but chat with each other while they restock items at a pace slower than a quadriplegic could restock items. Yes, there are rare occasions that a somewhat competent manager will open other registers but this is the exception, not the rule. (I would be amiss if I failed to mention that almost always the cashier left to deal with one endless line alone is almost always very friendly, nice and does her or his job well). (3) Simple, polite complaints to management are ignored. Complain about employees smoking directly in front of the entrance, have a manager find you to say he took care of it, leave the store to the same employees smoking in the same place. This specific store is a disgrace to the neighborhood and the retail industry.
The Truth February 22, 2013 at 11:35 pm
They've been coming in cars sittin' on 20's for about 4 years now. The bar owners are at home asleep and the bartenders are too busy to notice. They arrive promptly at midnight. There was a parking ban on a certain block though. At least those people noticed.
Link N. Parker February 22, 2013 at 11:37 pm
If the owner of MarketPlace wanted my serious, honest opinion, you know what I would tell him to do? Clear out the inventory, and shut the store down for 2 months, During the 2 months it is closed, retrofit the whole store to become an Aeroponic farm...he can mass-produce and grow all type of crops, indoors, year round, and then sell it at the front of the store...lettuce, spinach, tomatoes etc...you order the crop you want at the front of the store and the clerk goes and picks it right off the vine for you...it doesnt get any fresher or more organic than that...crops grown right in your own neighborhood that were picked off the vine the moment you bought it...I actually thought this as a business myself, but I dont have the capital at this time nor the time to seek it out...there is now ay TJ's, TI, Jewel, or Walmart can compete with freshness on that level.
boiztwn February 22, 2013 at 11:42 pm
.......................
The Truth February 22, 2013 at 11:44 pm
^ True. No argument. But why didn't these "progressives" in Uptown with their white ipod accessories and kindles boot them out before they were even allowed to leave another vacant storefront? They should have seen this coming and opted for a Hustler Headquarters with an outlet store attached.
I'm still baffled at the "chains" hatred while they all flock to Starbucks like white-on-rice.
Link N. Parker February 22, 2013 at 11:47 pm
http://en.wikipedia.org/wiki/Aeroponics
boiztwn February 22, 2013 at 11:50 pm
.......................
nolan February 23, 2013 at 12:42 am
lets see what happens here when the Red Line closes for repairs. Might just drive up here though.
Judy E. Brady February 23, 2013 at 01:47 am
Nicely said, Gloria.
Boystown Barry February 23, 2013 at 01:09 pm
In reply to He's just this guy, you know? post 22 Feb 2012 @ 6:45pm
Before I recently decided to use my spending power at neighborhood stores who provide a passable customer experience, the only consistently positive experience I had at Wal-Mart was with the cashier left to manage a never ending line on her own. I mention this because whomever was tasked with that burden showed the only signs of competency in the store. The management closely resembles post-surgery lobotomy patients: Not having baskets in a grocery store for over a month is unfathomable. Not enforcing State law by not allowing your employees to smoke at the entrance is a violation punishable by fine. If the Patch wanted to do anything which resembled journalism they would assign a reporter to examine the poor business practices and utter disregard for the consumer (by both employees and management) that is the standard at Broadway and Patterson.
PaulA60657 February 23, 2013 at 01:20 pm
I'd hope that all these complaints about the WalMart at Broadway and Patterson are being reported to Walmart Corporate? It does nothing to vent on places like here :) You have to let the mothership know what is happening as well.
Boystown Barry February 23, 2013 at 03:04 pm
One person who these concerns should be raised to is Tom Mars, Executive Vice President & Chief Administrative Officer, Walmart U.S. who in June 2011 stated:
"“There is no venue that presents a better opportunity for us than Chicago," Mars said, according to the Center Square Journal. "[T]his is not the first urban market that we have entered, or pretended to enter, but it is a critically important one to us and we are absolutely committed to doing it right." Full article: http://www.huffingtonpost.com/2011/06/28/wal-mart-exec-outlines-re_n_886118.html Note: I did try to search for contact information for Wal-Mart's Chicago Market Manager Jack Williams but that is not available. Those wishing to contact Wal-Mart corporate customer service, For reference: Wal-Mart Stores, Inc. Customer Relations 702 SW Eighth St. Bentonville, AR 72716-0117 Phone: 501-273-4000 Toll free: 1-800-925-6278 Fax: 501-621-2063 e-mail: letters@wal-mart.com
Alan Spaeth February 25, 2013 at 06:23 pm
I recently moved very close to the Market Place. I cringed when I heard that Wal-Mart was moving into the neighborhood. To be honest the Market Place is so outdated with the inventory, the check out process, and the cleanliness of the store. The prices are also outrageous. If I don't feel like hoofing it down to Trader Joe's (which is great), I will go the extra block to the Wal-Mart. I would happily support a local small owned business (I am a small business owner), but they have to meet me half way and be a good small business. You can't realistically expect to stay in business because people feel sorry for you?
Deno Jeffries February 27, 2013 at 01:34 am
Yes, you may pay a bit more for a box of cereal at Market Place, but try to buy a specialty product, fresh fish, or butcher meats at Walmart. You'll be sad for the loss of Market Place. Big boxes and the internet may save you a buck or two, but they cost you so much more.
Rudolph Bliefernick March 14, 2013 at 10:30 pm
Would the term "AmeriKKKa" offend you, David?
Felix Nicklebum March 21, 2013 at 04:31 pm
when Peter Stellas chose to demean me and challenge my "knowledge" of produce when I opined that they buy off-grade produce for their sale items, that's when I knew I would never go back, unless it was to purchase their "loss leaders". Although Walmart probably doesnt have the personal service that the indi grocers have, they probably don't have the poor attitude toward their customers that I had experienced several times at Market Place.

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