Whole Foods closing Triangle Square store

Lolita Harper

COSTA MESA -- Whole Foods Market is moving out of its Triangle Square

location because the underground store is not doing well enough,

officials said.

“It’s not something we want to do. We really enjoyed the community and

feel like they embraced us but they just don’t want to drive

underground,” said the natural and organic food retailer’s Regional

Marketing Director Elizabeth Carovillano.

Whole Foods plans to close in April but will provide full service for

as long as they possibly can, Carovillano said. She said the food

retailer is on the bottom floor of an already struggling Triangle Square

and was simply not convenient for customers.

In preparation for their closing, Whole Foods officials have been

actively searching for other Costa Mesa locations, Carovillano added.

Tom Estes, the property manager of Triangle Square, said he is also

actively searching for a new tenant to fill the 4,200-square-foot store.

Estes agreed the location made it difficult to draw customers but said

he didn’t think Whole Foods did enough marketing. Future plans for the

center, which include large marquee signs with tenant identification,

should help future tenants have more success on the basement floor, he

said.

“We have a lot of redevelopment ideas on the plate for next year an

are sure expecting to see a lot of them come to fruition,” Estes said.

“We have a lot of people who want the space,” he added.

While anchored by big name stores like Nike Town, Barnes & Noble and

Virgin Megastore, Triangle Square has struggled to retain tenants during

its nine years.

Since it opened in 1992, the center has lost other major tenants like

Ralphs Grocery store and Sfuzzi restaurant.

Estes said Whole Foods is not breaking any contracts with Triangle

Square and was perfectly in its rights to move. He would not confirm

specific details of the leasing agreement but said the center would not

lose any money.

Whole Foods Market did not choose the underground location, but moved

to Triangle Square after a deal to acquire a number of Ralphs Grocery,

said Kate Lowery, Whole Foods national spokeswoman. In the acquisition,

it was agreed that Whole Foods Market would not have to pay rent, Lowery

said but also could not comment on leasing details.

“Whole Foods Market is very careful about finding the proper locations

for the our demographics,” Lowery said. “In a package deal you could have

four beautiful stores and one potentially problematic store but we said,

‘Let’s make a go at it.”’

Carovillano said the company knew the underground location would be a

challenge and devoted thousands of dollars into marketing strategies.

Some of the effort paid off, as the Costa Mesa store has a strong and

devoted customer base.

Although sales at the Costa Mesa store were stable, Whole Foods

officials did not feel the store had potential, Lowery said. But the

Costa Mesa store is not the only Whole Foods store that will meet its

fate.

The national market chain announced it will close two other stores --

not in California -- in the following year, market financial reports

show. Despite a 17% increase in sales overall in the fourth quarter, the

company reported a combined loss of $1.8 million annually in the three

closing stores.

Councilman Gary Monahan said he would be sorry to see the store go but

was encouraged to hear the company was looking for other Costa Mesa

locations.

“I like Whole Foods. I love their products. I go there all the time,

but its always empty,” Monahan said.

Carovillano said Whole Foods has never had to close a store before.

* Lolita Harper covers Costa Mesa. She may be reached at (949)

574-4275 or by e-mail at o7 lolita.harper@latimes.comf7 .