DISCUSSION

Are grocers missing the mark with urban consumers?

February 28, 2023Written by Patricia Vekich Waldron

Food shopping options for downtowners can be downright dismal. I know — I’m a center city dweller. I feel fortunate to have a great Ralph’s in my neighborhood, but before the store opened, downtown San Diego was pretty much a food desert. I met Royal Blue Grocery, an operator of “compact urban markets” on a recent visit to Austin, TX. They have been in business for 15+ years and operate a handful of urban sites. Royal Blue understands and caters to how urban consumers shop (smaller baskets, more fresh and prepared foods, upmarket treats) and ensures the experience is pleasant, quick and easy. I was impressed with how each store is individually assorted to address the needs of multiple cohorts in the neighborhood: residents, visitors and workers. Essentials Royal Blue carries almost everything a local resident needs to operate a household, prepare meals, snacks or entertain guests. Goods are packaged in sizes appropriate for smaller households that typically live in multi-unit residential buildings in urban areas.

Produce – fresh fruits and salad ingredients
Dry grocery items – smaller-sized packages of cereals, baking ingredients, spices
Fresh – limited assortment of packaged meats
Adult beverages – mostly craft brews, local spirits and basic wines
Household products – a limited assortment of cleaning basics and paper products

Specialty items Proximity to the convention center, hotels and the river walk means many visitors. Royal Blue stocks fancy foods and gifts that reflect Austin’s personality.

Niche local brands – chocolates, coffees, honey, “healthy” bars, spices and rubs
Organics, including fresh juices
Souvenirs and cards
Naturally produced candles, lotions

Convenience items A variety of grab-and-go foods for multiple day-parts are popular with residents, visitors and workers. Outdoor seating areas are available for enjoying one’s beverage or snack.

In-store coffee bars – local java and baked goods
Wine and beer on- and off-premise sales, with an emphasis on craft brews
Texas favorites like breakfast burritos, empanadas and barbeque
Prepared good-for-you foods – fruit cups, salads, juices and boosts

There has been lot of store format experimentation lately, and even more discussion on the role of the store. Royal Blue has all the right ingredients for each neighborhood and all its cohorts. Smaller neighborhood stores have a big part to play, especially in diverse urban areas where consumers shop differently.

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