Whole Foods Eyeing central Iowa

**Three4Cy** · 08-12-2010, 01:48 PM

Originally Posted by simply1

Gateway market in wdm stopped selling grocery items didn't it?

Yes, they closed the entire WDM operation. The Des Moines Club is taking over the space.

The question becomes can DSM support a Trader Joe's, Gateway Market, and Whole Foods Market? I know they are all a different concept, but they are similar in many ways. The key will be where Whole Foods decides to build if they come to DSM.

**BooneCy** · 08-12-2010, 01:54 PM

I know people who would do most of their shopping at Whole Foods just because of the selection. It would definitely be successful.

**cyrocksmypants** · 08-12-2010, 01:56 PM

They could thrive in West Des Moines. I live in a suburb north of Indianapolis just like WDM and it does great. Sometimes, if I've got nothing to do I'll just walk through there to kill an hour.

**capitalcityguy** · 08-12-2010, 01:59 PM

Gateway would probably lose because people tend to have very little appreciation for supporting unique, local store. I can almost assure you that there will be numerous individuals who will check out and shop at Whole Foods that have never even stepped into the Gateway Market.

This sound effect comes to mind….

baaaa….baaaaa

**dmclone** · 08-12-2010, 02:00 PM

Originally Posted by Broodwich

You must not watch the Food Network much.

Nope but my wife watches it about 23 hours a day.

**rebecacy** · 08-12-2010, 02:09 PM

Whole Foods = Same nutrition at a higher price.

**Melvin** · 08-12-2010, 02:31 PM

I was in a Whole Foods in Salt Lake City.

I'm not sure Des Moines has the High Income Professionals that would be needed to support a Whole Foods. They are expensive, but they have great products.

**Al_4_State** · 08-12-2010, 02:39 PM

Again, it still sounds like Gateway Market. The Gateway out in WDM went down, but the one in Sherman Hill always seems packed when I'm there.

That said, it isn't that big, so Whole Foods would probably have things they didn't, but when I work South of Grand, and live in Beaverdale, I ain't driving to WDM for the exact same thing I can get right on my way home. Just my line of thinking on the matter.

Trader Joe's on the other hand, I WOULD go out to WDM for, because they charge the same price as Hy-Vee or Dahl's, and have $3 Chuck.

**capitalcityguy** · 08-12-2010, 02:46 PM

Originally Posted by Melvin

I was in a Whole Foods in Salt Lake City.

I'm not sure Des Moines has the High Income Professionals that would be needed to support a Whole Foods. They are expensive, but they have great products.

These places don't guess. They check the demographics and determine if they meet their business model. Whole Foods is not guessing whether or not DM has the demographics, they already know. It is safe to say that DM is probably borderline in meeting their requirements and they are also aware that the Gateway Market was modeled after Whole Foods. What they can't predict is how loyal people will be to Gateway. There probably isn't enough room in the market for both…and they realize that.

**cybsball20** · 08-12-2010, 02:47 PM

Originally Posted by Al_4_State

Again, it still sounds like Gateway Market. The Gateway out in WDM went down, but the one in Sherman Hill always seems packed when I'm there.

There was also a similar chain that tried to come in to West Des Moines right when Jordan Creek opened, I don't think it lasted three months.

Some friends and I were talking about why Gateway Market in Sherman Hill does so well and the one in West Des Moines didn't. We figured there were more true 'foodies' living in Beaverdale, Ingersoll, south of Grand etc. People who enjoy quality food and don't mind spending the time and money to prepare it themselves. West Des Moines seems to have people that would rather jump into a chain resturant or drive through, or too house poor to justify spending the extra money for quality groceries.

**dmclone** · 08-12-2010, 02:51 PM

Screw Whole Foods, I want IKEA! Now there is a store that would work in Des Moines.

**capitalcityguy** · 08-12-2010, 03:10 PM

Originally Posted by dmclone

Screw Whole Foods, I want IKEA! Now there is a store that would work in Des Moines.

2 million metro population minimum for IKEA to even consider (if my memory serves) . We're not even close.

**Three4Cy** · 08-12-2010, 03:23 PM

Originally Posted by cybsball20

There was also a similar chain that tried to come in to West Des Moines right when Jordan Creek opened, I don't think it lasted three months.

Some friends and I were talking about why Gateway Market in Sherman Hill does so well and the one in West Des Moines didn't. We figured there were more true 'foodies' living in Beaverdale, Ingersoll, south of Grand etc. People who enjoy quality food and don't mind spending the time and money to prepare it themselves. West Des Moines seems to have people that would rather jump into a chain resturant or drive through, or too house poor to justify spending the extra money for quality groceries.

The location was terrible, it was in an office type complex that is still 3/4 empty, and the housing development that would have provided the walking traffic has not materialized like planned. I do think it hurts having Target so close, not because they are the same type store, but it's just more convenient. The times I was in there, it always smelled like rotten seafood - not a good thing either. The Sherman Hill location really has no competition, and it has wonderful foot traffic, which helps tremendously, and it is in an older more established neighborhood vs. a neighborhood like you said that will just drive to a restaurant because they don't want to cook.

**capitalcityguy** · 08-12-2010, 04:17 PM

Originally Posted by Three4Cy

The location was terrible, it was in an office type complex that is still 3/4 empty, and the housing development that would have provided the walking traffic has not materialized like planned. I do think it hurts having Target so close, not because they are the same type store, but it's just more convenient. The times I was in there, it always smelled like rotten seafood - not a good thing either. The Sherman Hill location really has no competition, and it has wonderful foot traffic, which helps tremendously, and it is in an older more established neighborhood vs. a neighborhood like you said that will just drive to a restaurant because they don't want to cook.

Some valid points, but...

That building in Ponderosa was built as a retail building. It also has a nice man made lake on its backside. The building that houses Gateway in Sherman Hill was an plumbing supply store or something before it was ever a market.

Target = Gateway ? I don't get that other than I bet they attract the same type of customer (i.e....a Gateway customer probably doesn't go to Wal-mart) and thus, that should have helped Gateway West, not hurt it.
Sherman Hill has no more or less competition than the one out west. Again, Target is not their competition.

I think you touched on one valid point and that is those that find an appreciation in an older neighborhood vs. those that want the pick of the next beige house on the cul-de-sac. Different motivators/priorities. There is a reason that downtown and Ingersoll Avenue are not littered with chain restaurants. That is a large part of it. We could psycho analyze this further (which would be pure speculation), but there is something to be said for the mindset/motivation of the nearby populace of each area IMO that drives why one is successful and the other wasn't. Both areas have very favorable demographics (some of the best in the metro), so that is not it.