Is there a future for mall supermarkets after Wegmans' departure?

While a prominent player in the supermarket sector abandons its venture with a regional mall supermarket, Stew Leonard's, headquartered in Norwalk, states that its own mall grocery store in New Jersey is thriving. The company remains open to the possibility of establishing another store within an enclosed mall as part of its future expansion plans.

In June, Wegmans made the decision to shut down its supermarket situated at the Natick Mall in Massachusetts, attributing the closure to the store's "non-traditional location" that failed to attract foot traffic comparable to other Wegmans outlets. Spanning an expansive area of approximately 150,000 square feet across two floors, the Natick Mall store ranks among the largest within the Wegmans chain, which spans from Massachusetts to North Carolina. After the closure, Wegmans has shifted its focus towards exploring a potential site in Norwalk.

Immediate access to a Wegmans spokesperson for detailed insights on the specific reasons behind the lower-than-expected influx of food shoppers in Natick was not available. However, MetroWest Daily News recently reported that a group of shoppers is actively working to persuade the chain to continue operating at the Natick Mall. Wegmans has consistently ranked highly in the annual surveys conducted by the American Customer Satisfaction Index, further solidifying its position as a popular choice among national chains.

Wegmans is making preparations to establish its inaugural store in Connecticut, located in Norwalk, which happens to be within a four-mile radius of Stew Leonard's headquarters. In April, a local businessperson in Norwalk, who sold their property to Wegmans, mentioned to CT Insider that the envisioned size of the store by the company would leave many people astounded and taken aback.

Over a year after the initial arrival of Wegmans at the Natick Mall, Stew Leonard's followed suit by launching its own mall supermarket within a vacant space formerly occupied by Sears at the Paramus Park Mall in New Jersey.

The Stew Leonard's establishment at the Paramus Park Mall occupies a total area of 80,000 square feet, which is significantly smaller than the recently expanded flagship store in Norwalk. However, despite its size, the store offers visitors an expansive and spacious atmosphere. Situated in close proximity to various prominent grocery chains and specialty food stores such as ShopRite, Whole Foods Market, Trader Joe's, BJ's Wholesale, and Amazon Fresh (which took over a former Fairway Market location last year), the Paramus Park Mall provides a convenient location for shoppers to access a range of options.

Despite the implementation of Bergen County's historical "blue laws," which restrict retail operations on Sundays, the Stew Leonard's store at Paramus Park witnessed a steady flow of shoppers coming and going on a Sunday midday. The store managed to attract ample numbers of customers, even though the larger mall itself remained closed for the day.

Stew Leonard's is currently in the process of establishing its second store in New Jersey, located in Clifton. The new store will occupy a former kosher supermarket space within an open-air shopping center. While the company has not yet confirmed if they are considering any other enclosed malls, they have expressed openness to the possibility of expanding into suburban malls as part of their future expansion plans.

After overseeing the Paramus store since its opening in September 2019, Jake Tavello has assumed the role of Chief Operating Officer for Stew Leonard’s.

"When our family launched Stew Leonard's in Paramus in September 2019, we ventured into a new format for us by being situated in a mall and combining food and wine offerings," Tavello shared with CT Insider in an email response regarding the store's performance. "However, right from the beginning, despite the obstacles presented by the COVID-19 pandemic hitting just six months after our opening, the store has shown outstanding performance. Our foot traffic in Paramus is comparable to our other well-established stores.”

Nevertheless, considering the Wegmans situation in Natick, it raises concerns regarding the feasibility of converting Connecticut mall spaces into conventional grocery stores.

Across Connecticut, numerous vacant spaces within malls can be found, including the former Lord & Taylor locations at Danbury Fair and Trumbull Mall. Notably, Westfield Trumbull Mall was recently renamed following its acquisition by Namdar Realty Group. Additionally, right across the entrance of Lord & Taylor at Trumbull Mall, a substantial new apartment complex is approaching completion.

In Stamford, a section of a former freestanding Lord & Taylor store was acquired by Whole Foods. Furthermore, at Westfarms in Farmington, Jordan's Furniture occupied one of the four available spaces previously occupied by Lord & Taylor.

In addition to Wegmans and Stew Leonard's, there are several mall supermarkets across the country. One example is the ShopRite store, which opened in 2019 at the Stroud Mall in Stroudsburg, Pennsylvania. Despite being a relatively small mall located approximately 80 miles west of New York City, the ShopRite brand successfully established its presence there.

During the construction of the Stew Leonard's store in Paramus, CEO Stew Leonard Jr. highlighted the importance of supermarkets embracing experimentation in order to remain relevant. The company, founded by his father, gained recognition for its distinct departure from conventional supermarket design, following a unique path that set it apart from cookie-cutter approaches.