Similar to the “glitz” of Lazarus, this proposal calls for a $24 million revitalization project that includes a 50,000-square-foot Kuhn’s Market, among other stores. The second proposal, presented by Kuhn’s, is not based on experience or a proven business model. The new Save-A-Lot building is projected to cost $5 million to $6 million and can be up and running in less than a year.
But the small size of the proposed building project (16,500 square feet) would allow additional businesses to move into the Center Avenue location over time (such as a pharmacy), complementing the smaller grocer. Save-A-Lot says it would not be economically viable to build a full-service grocery store on the Hill.
According to Mayor John Thompson of Wilkinsburg, where a Save-A-Lot opened in 2007, the store has surpassed the community’s expectations, providing not only quality food at low prices but also many jobs to community residents and financial support to local charity efforts. The company is experienced in providing quality service to urban markets like the Hill District. It also limits inventory to approximately 1,200 frequently purchased items - what the corporation refers to as an “edited assortment.”īy keeping its stores small, forgoing amenities that increase the costs of doing business, and stocking only the most popular items in the most commonly purchased sizes, Save-A-Lot claims it saves customers 40 percent on food purchases. Save-A-Lot deliberately keeps its stores smaller than other grocers, eliminating amenities such as on-site bakeries, pharmacies and dry cleaners. Its store is economically viable, based on a business model that works and experience with more than 1,200 stores around the country. The first proposal for the Hill District grocery store is being presented by St. Instead, politicians chose a reality-ignoring strategy that cost taxpayers tens of millions of dollars and dealt Pittsburgh a tough blow. The truth is Lazarus might have worked if marketproblems - high parking taxes and the lack of downtown residential living - had been addressed first. Even with more than $20 million of government subsidies, Lazarus sustained big losses and was forced to close. But peak sales never exceeded $22 million. Lazarus was obligated to begin repaying the $18 million loan once in-store sales reached $41 million per year. Despite the large government subsidies, once construction was completed and the doors opened, sales were well below expectations. In order to attract the store, the Urban Redevelopment Authority lent Lazarus $18 million and the city provided $5 million in additional cash. The Lazarus project was a costly mistake. I am hoping, for the sake of Hill residents and city taxpayers of all neighborhoods, that our leaders will choose the best long-term economic answer instead of short-term glitz. Now Pittsburgh politicians and community leaders face another economic decision - which grocery store to build in the Hill District. In the spring of 2004, after just five years, Pittsburghers mourned as the store closed its doors forever - another blow to a city struggling to succeed. In 1998, Pittsburgh celebrated as the “glitzy” new Lazarus department store opened on Fifth Avenue, Downtown.
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