[Mpls] RE: Higher grocery costs in city

[Luke Weisberg]

In response to the discussion about the urban/suburban price difference...I believe it is true that CUB and other retailers may charge higher prices in the city because they believe the cost of doing business is higher.  However, in conversation with some retailers, they affirm that on a square footage comparison, a CUB in North Minneapolis can certainly be as profitable as a CUB in Edina.  In spite of the real (or sometimes perceived) higher costs due to "shrink", the buying power of lower-income neighborhoods is as strong, or stronger than some affluent neighborhoods.    There's a lot of good research to back this up.  Further, some developers and retailer are becoming increasingly persuaded by these facts and are re-thinking the importance of being in lower-income urban neighborhoods.  There is opportunity!   ~ Luke Weisberg Golden Valley