San Francisco Chronicle

West Oakland’s only fullscale market may not survive slump

- By Janelle Bitker

Plunging sales during the second half of the pandemic might permanentl­y shutter West Oakland’s Community Foods Market, once again leaving many of the neighborho­od’s residents without an accessible fullscale grocery store.

When Community Foods opened in summer 2019, it was hailed as a visionary store committed to the people in greatest need in West Oakland. Independen­t and missiondri­ven, the market took nine years to come to fruition with $15 million in funding from grants, nonprofits and a direct public offering.

In an effort to see its second anniversar­y, Community Foods Market began a “Save Our Store” campaign Thursday, calling on people to shop frequently now and be entered to win $200 gift cards for future groceries. The goal is to bring 100 more shoppers into the store each day for the next 30 days. If that doesn’t happen — and if there’s no significan­t outside investment — the market is on pace to close in three months.

“We’re looking at an 11thhour situation in terms of the radical turn our business has taken,” said CEO Brahm Ahmadi.

The pandemic likely reduced spending power in the

neighborho­od as people faced job losses and evictions, along with continued hesitation to return to public indoor settings, Ahmadi said. Even though winter’s stayathome order is over and many East Bay residents are rushing back to stores and restaurant­s, the scene at Community Foods has not changed.

Community Foods saw an initial bump in sales at the start of the pandemic as people stockpiled pantry goods, but business dropped to prepandemi­c levels by the end of last May. After Thanksgivi­ng, traffic plunged by 28%. Customers’ average spending fell by 30%.

“People who are regular customers who used to buy full shopping carts traded down to hand baskets and now are at the point where they’re checking out with just a few items in their hands: bread, milk and bananas,” Ahmadi said.

Meanwhile, Bay Area grocery prices spiked at the start of the pandemic by almost 7% and have remained high ever since then, according to the U.S. Bureau of Labor Statistics. When Community Foods’ traffic dipped again in February, Ahmadi felt forced to lay off seven people and reduce the hours for several others in order to keep prices competitiv­e with major grocery chains. Still, he fears budgetcons­cious shoppers are now traveling farther for grocery chains because of perceived price difference­s.

“We know the negative impacts of this pandemic have not been distribute­d equally and are disproport­ionately hitting neighborho­ods like West Oakland,” he said.

Ahmadi has also been fundraisin­g in the background in the hope of investing in marketing, ecommerce and other tools that will help Community Foods grow. It’s possible some of this money will go toward keeping operations alive — but ultimately, if he can’t bring more people to the store, outside investors aren’t likely to furnish funds.

Community Foods has never had the cash reserves to ride out a crisis like the pandemic. Unexpected constructi­on costs — including unusually strong rains that delayed the paving of a parking lot and the discovery of an undergroun­d fuel tank — wrecked the market’s

“We know the negative impacts of this pandemic have not been distribute­d equally and are disproport­ionately hitting neighborho­ods like West Oakland.” Brahm Ahmadi, CEO, Community Foods Market

budget before it even opened.

Leading up to the market’s opening in 2019, residents said Community Foods represente­d a revival in the neighborho­od. A closure would embolden naysayers who say West Oakland can’t support a grocery store, neighborho­od resident David Peters told The Chronicle last year during another round of fundraisin­g.

“A lot of us have poured our hopes and dreams into what this store represents and what it could mean not only to us in the neighborho­od but what it could represent for people outside the neighborho­od,” he said.

Ahmadi knows other organizati­ons are trying to open similarly missiondri­ven grocery stores across the country. If Community Foods closes, funders may be more likely to pass, he said.

“It’s one of the things that bothers me the most,” he said. “Having a project that is fairly well known, and having that fail is going to hurt any other effort. There’s no doubt about it.”

Community Foods Market. 3105 San Pablo Ave., Oakland. https://mailchi.mp/communityf­oodsmarket/saveoursto­re

 ?? Marlena Sloss / Special to The Chronicle ?? Pam Torno of Oakland loads her cart at Community Foods Market, a visionary grocery store serving West Oakland.
Marlena Sloss / Special to The Chronicle Pam Torno of Oakland loads her cart at Community Foods Market, a visionary grocery store serving West Oakland.
 ?? Photos by Marlena Sloss / Special to The Chronicle ?? Anissa Cisneros shops at Community Foods Market in West Oakland. Sales have fallen at the store, putting it at risk of closure.
Photos by Marlena Sloss / Special to The Chronicle Anissa Cisneros shops at Community Foods Market in West Oakland. Sales have fallen at the store, putting it at risk of closure.
 ??  ?? Community Foods Market CEO Brahm Ahmadi has started an 11thhour campaign to save West Oakland’s only fullscale grocery store, which opened in 2019 before the pandemic.
Community Foods Market CEO Brahm Ahmadi has started an 11thhour campaign to save West Oakland’s only fullscale grocery store, which opened in 2019 before the pandemic.

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