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Long Range Recommendations

Establish a Competitively Priced Supermarket in a Convenient Location

Begin working with developers to place a large chain grocery store in the area. Though there is one large competitively priced retail supermarket in the 95838 zip codes, it is unfortunately located on the opposite side of a major freeway, away from the greatest number of people living in North Sacramento and Del Paso Heights. This creates a natural barrier to those who do not have access to a vehicle, as there is a sidewalk, but no designated bike path on the overpass and heavy traffic makes walking with children an unattractive option. There is an RT bus stop directly in front of the store, however, as explained more extensively below, there are several drawbacks to taking the bus, including bus fare that could cost as much as $3.50 per person, long waits with perishable items and the perceived reluctance of bus drivers to transport individuals with several bags of groceries.

Successfully establishing a major grocery chain in North Sacramento could take several years. Because profit margins in the retail supermarket business are extremely slim, usually 1%-2%, an extensive amount of research is often conducted by the supermarket retailer prior to any commitments of development. The following are just a few examples of the details that will be taken into consideration by a supermarket retailer according to Weinberg: "1) the definition of the trade area, including percentage of private vehicle ownership in the area, pedestrian access to viable sites, geographical features which could create natural barriers such as those described with the current Sav-Max location, neighborhood boundaries, population density 2) the demographics of the population such as size of households and their income 3) the calculation of expenditure potential and 4) the competition and the estimated capture rate of local shoppers." Supermarket possibilities in Del Paso Heights and North Sacramento have been examined in the past. A study produced six years ago by The Real Estate Department Corporate Real Estate Services, an independent firm based in San Francisco, entitled "Analysis of Neighborhood-Serving Retail/Grocery Supermarkets North Sacramento Project Area Sacramento, California" (see Attachment 7 for details) suggested that the North Sacramento area might be an economically viable option for a large chain supermarket. At the time of the study, two sites were chosen as possible locations for a major grocery store. These sites need to be reviewed to see if they are still good options. A community development group, which includes a collaboration between community members, city representatives, people and organizations experienced in neighborhood revitalization, like the Sacramento Housing and Redevelopment Association, and business leaders, like developers and supermarket retailers, is essential.

A large chain grocery store acting as an anchor for a large retail complex would greatly increase food access as well as food security in the North Sacramento area. Large chain supermarkets have the buying power to be able to offer the lowest prices on staple food items as well as provide the opportunity for reasonable prices on other commodities, such as personal care and household items, either through the grocery store itself or surrounding businesses. The recent trend toward “full service” supermarkets that includes a financial institution and other services would further increase food security in the area by allowing residents to conduct one-stop shopping, reducing the amount of time, energy and extra transportation expense currently expended when shopping for food outside the community.


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