A Commitment to the Future : Vons’ $100-million plan to open stores in Los Angeles’ inner city is great news
Most supermarket chains don’t operate more than a store or two in most inner-city neighborhoods. But, after decades of not doing business in much of South Los Angeles, Inglewood and the Eastside, Vons is planning to build 12 stores in several underserved areas. That outstanding commitment is exactly what is needed to help rebuild Los Angeles.
The large scale of the commitment is particularly noteworthy. Vons won’t experiment with one or two new stores. Instead, it is taking the lead with a $100-million investment--the largest corporate promise to date for areas affected by the riots.
The significant increase in grocery stores is expected to make food shopping more competitive and more convenient for more than a million consumers. That smart investment is also expected to translate into as many as 2,000 permanent jobs. Those jobs, including some well-paying positions, are essential to any real economic stability in communities traditionally neglected by major grocery chains and other retailers.
The Watts riot triggered an exodus of major grocery stores nearly 30 years ago. Many retailers cited the additional and burdensome costs of high crime and exorbitant insurance. Supermarket executives also complained about old, small stores with no room to expand. Regardless of the motivation, the redlining crippled predominantly black and Latino neighborhoods. Even largely black cities such as Inglewood, solidly middle- and working-class, got left behind. The absence of major chains contributed to the exodus of decent jobs and forced many shoppers to buy groceries at small, uncompetitive markets or drive far distances to get better deals.
The Los Angeles riots highlighted the scarcity of decent jobs and other services. But altruism did not prompt Vons’ decision to return to the inner city. Solid business sense was the major factor: There’s a market to be filled, and money to be made. As a Vons executive said with admirable candor: “Over a long period of time we simply lost sight of the opportunity that existed in the neglected areas--and shame on us for being late to rediscover the opportunity.”
Another supermarket chain, Lucky, rediscovered the potential for profits and, in April, opened an upscale market in the Baldwin Hills-Crenshaw Plaza. That supermarket has consistently surpassed expectations. The lure of similar profits should prompt many major retailers to imitate Vons’ outstanding commitment to the rebuilding--and remaking--of Los Angeles.
