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L.A. Fitness, Bed Bath and Beyond to invade the Heights


samagon

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You may want to actually set foot in a Sprouts and Revival Market before you say that they are going into "direct" competition with each other.  Revival Market sells high-end "heritage" meats and artisan cheeses.  The produce is all from local producers who mostly sell exclusively to local farmer's markets, restaurants and CSAs.  Sprouts is basically a version of Whole Foods priced more for the middle of the market.  Sprouts is where you go to get decent roast beef for $6 a lb.  Revival Market is where you go to get amazing roast beef for $16 a lb (worth every penny). 

 

And the claim was never that Walmart would put Revival Market out of business.  The claim was that Walmart would put Fiesta, Michoacana and other small independent discount grocers out of business, creating a monopoly within the trade area for the discount grocery market.  The verdict is still out on that as Walmart has only been open for just over 6 months.  And given their recent ad campaign, Walmart appears to be more concerned with Kroger than the discount grocery market.   

 

and now Sprouts deli department will put Carter and Cooley out of business, but where's your disdain?

 

and for the record, I'm to lazy to go search the walmart thread, but your claim was not that the corporate giant walmart would put lesser corporate giants out of business, it was that walmart would put mom and pop stores out of business, and while fiesta is hardly a corporate giant, they are hardly a mom and pop store, and not what you were originally arguing about.

Edited by samagon
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I have a buddy who lives literally within a stones throw of Sprouts on S Lamar in Austin (formerly Sun Harvest) and Ive been in there. Also been in revival.  Whole Foods is also a competitor for Revival. There are direct dollars spent both places among the same customer base that could choose to spend in either one.  Wal*Mart is not even in the discussion.

 

So you are admitting that there is no direct competition between Sprouts and Revival, just the same general customer base that might go to either store, but for very different needs.  I guess you are not LMOAing anymore.  Sprouts does not carry anything that you would find at Revival.  No heritage meats and in-house salumi from the same, no artisan cheeses, no small batch local ice cream, no local small farm produce, no in-house gourmet condiments, no Fluff bakery, no rotating Saturday breakfast menu, no gourmet prepared foods or catering, and so on.  Thus, they are not in direct competition, unless you consider selling $30 a lb salumi the same product as $5.99 a lb salami.  If that is your standard, then Walmart and Sprouts are very much direct comptetitors.

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I've often wondered that people simply get off to paying more for a commodity if a halfway decent argument is given to justify the markup.I don't think the mom and pops feel a shred of guilt for their high markup, yet the consumer is told to feel guilty for wanting to spend less at the "big box".

BTW those $4+ pretzel rolls at Revival from Slow-dough can be had for $2 at Dairy Maids, though I find myself tortured with guilt from wanting to spend less there.

Edited by TGM
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There is perceived status in the ability to pay more for something than others can afford. Women will brag on how much they paid for a purse. Lexus automobiles are not that popular outside the US, but here buyers enjoy paying more for them, because others will know the owner has disposable income. I have even had clients tell me that they wondered how good I was because my fees "weren't high enough". 

 

And, of course, imagine my surprise at finding the exact brand of berries that I saw at Whole Foods sitting in the produce section of Kroger...for 30% less.

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What cracks me up is that "Big Grocery" is always quick to blame "Big Oil" for rising grocery prices. However, you never see the inverse when the price per barrel decreases. Damn you Cap'n Crunch.

At a certain point it makes economical sense to grow your own crunch berries in the back yard.

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I've often wondered that people simply get off to paying more for a commodity if a halfway decent argument is given to justify the markup.I don't think the mom and pops feel a shred of guilt for their high markup, yet the consumer is told to feel guilty for wanting to spend less at the "big box".

 

Pretty sure it's more about better product. The bacon from Revival is delicious.

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What cracks me up is that "Big Grocery" is always quick to blame "Big Oil" for rising grocery prices. However, you never see the inverse when the price per barrel decreases. Damn you Cap'n Crunch.

At a certain point it makes economical sense to grow your own crunch berries in the back yard.

 

The price of groceries is intimately connected with the price of groceries, however, the response time is often lagging.  When the price of oil rises, the immediate cost of goods goes up for no other reason other than shipping.

 

However, the price of the actually groceries is usually 3-6 months delayed from the increase in oil.  For example crops - they were planted when diesel was $3/gallon...but harvested at $4 gallon....its 25% more expensive than when the crop was planted.  This "cost" will work its way into next years cost of business....most farmers buy what is similar to a futures contract for what they have planted, which basically means they sell their crop before harvest to lock in a price.  Its very complex...actually far more complex than the ordinary layman would understand.  Having done it, I wont try to fully explain it, but suffice it to say that the price of groceries is directly tied to the price of oil, but its increases are often delayed, if not by a planting season in many times, then by the farmer who rolled the dice to see what the market would bear without pre-selling his crop.

 

Beef is also very interconnected.  Ethanol sucks, its inefficient and it destroys motors, but the greenie weenies love it despite its many problems....Corn is the primary crop of ethanol, which also happens to be the primary feed of the feedlot industry.  Beef is at historic highs, b/c the government has increased ethanol contracts without concern for the price of food.  This is great if you happen to be a corn farmer, but its bad if you are a consumer.  Corn feeds most live animals, and was historically cheap.  Now its just an over-priced commodity b/c the government interjected and drove up the price of feed, the price of beef, and the price of fuel.  Its bad policy.

 

Thats a quick and dirty but suffice it to say that agriculture is really one of the most important industries this country has and its being destroyed by government regulations...its often joked that farmers/ranchers are the only industry out there where they buy everything retail and sell everything wholesale.

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Ethanol sucks, its inefficient and it destroys motors, but the greenie weenies love it despite its many problems....Corn is the primary crop of ethanol, which also happens to be the primary feed of the feedlot industry.  Beef is at historic highs, b/c the government has increased ethanol contracts without concern for the price of food.  This is great if you happen to be a corn farmer, but its bad if you are a consumer.  Corn feeds most live animals, and was historically cheap.  Now its just an over-priced commodity b/c the government interjected and drove up the price of feed, the price of beef, and the price of fuel.  Its bad policy.

 

I agree with you, but I don't think environmentalists are the ones pushing for more ethanol in our fuel. The environmental costs of using ethanol for fuel are pretty bad - including growing and harvesting the corn (requiring pesticides, heavy machinery, and lots of water), processing, shipping, and finally inefficient burning in our vehicles that reduces our gas mileage and potentially shortens the lifespan of engines. I believe it's largely the big agriculture companies that have been pushing this scheme on us, and they have a lot of sway in congress. 

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There is perceived status in the ability to pay more for something than others can afford. Women will brag on how much they paid for a purse. Lexus automobiles are not that popular outside the US, but here buyers enjoy paying more for them, because others will know the owner has disposable income. I have even had clients tell me that they wondered how good I was because my fees "weren't high enough". 

 

And, of course, imagine my surprise at finding the exact brand of berries that I saw at Whole Foods sitting in the produce section of Kroger...for 30% less.

 

I notice the same thing. However, there are some instances where something is of better quality that justifies the higher price. I view places like Whole Foods as selective shopping destinations...if I do go there, it's for a couple specific items I can't find at Kroger, or where the price is very similar. 

 

And Lexus automobiles are really just glorified Toyotas, so I do think most people buy them for the inflated status symbol. I enjoy the fact that I drive an inexpensive commoner's car that gets better mileage and handles better than many "premium" cars.

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I agree with you, but I don't think environmentalists are the ones pushing for more ethanol in our fuel. The environmental costs of using ethanol for fuel are pretty bad - including growing and harvesting the corn (requiring pesticides, heavy machinery, and lots of water), processing, shipping, and finally inefficient burning in our vehicles that reduces our gas mileage and potentially shortens the lifespan of engines. I believe it's largely the big agriculture companies that have been pushing this scheme on us, and they have a lot of sway in congress. 

 

I dont think big agriculture cares about ethanol anymore at least that is not what any of the agricultural literature, farm magazines, and lobbying ads I get say.  Big Ag is basically focused rather intensely on GMO and marketing/lobbying the government to keep GMO from being required for labeling.

 

Big Ag does not really care where the Corn goes - they never have surplus corn.  What we dont eat or feed to animals here gets shipped around the world.  What Ethanol has done is reduced food crop acreage and increased corn acreage with a focus on the biomass that is used for ethanol and an increase in the dry matter that is converted to cattle feed.

 

I think America overall though is very much in love with the taste of corn feed beef.  Pure grass fed may be more healthy (debatable) but I raise about 160 head of non-hormone grass fed beef, and many consumers do not care for the stronger taste of the meat or the yellow coloring of the fat.  It is not what most are accustomed too.   It is not bad, its just not what most people are accustomed to getting. 

 

Most organic beef is still fed a finsihing ration of corn - especially at the higher end resteraunts and grocery stores...I know that Revival market is grass fed (or they used to be) but it does take some getting used to.

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Yeah, the greens started to figure out a while ago that ethanol sucked. They also figured out that corn as feedstock for cattle sucked, too. Almost everyone except for corn farmers and Iowa politicians has figured out that corn sucks.

 

If your end game is going faster, if you have a turbo, tuning it to run ethanol instead of gasoline is going to net more HP at the end of the day. Sure you also get way less economy, but if all you want is faster, who cares how many gallons you go through per mile?

 

This is thanks to ethanol being less volatile, you can run higher compression and advance the timing much farther with ethanol than you can with gasoline, and it will not detonate. the net result is yes you have to run a much lower AFR, but you get more power per cycle.

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  • 5 weeks later...

Not to get back on-topic or anything, but did anyone else happen to see the LA Fitness tent up at the Studemont Kroger a couple days ago?  I didn't have a chance to stop but I would imagine it has something to do with this development.

 

LA Fitness has a location under construction on N. Shep near Garden Oaks.  They have been pre-selling that location at the Shep Kroger too.  https://www.facebook.com/LAFitnessHoustonNorthSheperdDr?fref=ts

 

Some people think that Lifetime fitness is going to have a location at the Yale St. market, but it is just talk at this point.

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  • 4 weeks later...

The first confirmed lease is for Guitar Center.  They will take up @12,000 sq ft.  Kind of interesting to see Guitar Center expanding after internet sales have taken such a big chunk out of musical instrument retail (they killed off Mars Music  and H&H with ease). 

 

I have also heard rumors that LA Fitness, not lifetime, is looking at another location at the Yale St. Market.

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Well it certainly can't be good for Fuller's, but they do a lot of internet sales and ship guitars all over the world too.  They have some acoustic guitars that Guitar Center doesn't sell either.   GC has had plenty of Houston locations for a long time and Fuller's has done fine, so I expect that to continue.  If anything, I question whether GC needs another location. 

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  • 2 weeks later...

Sprouts is pretty cool, my folks shop at the one in Cinco Ranch and I've been in a few times. It's TJs pricing and smaller footprint, but unlike TJs it's not mostly sodium and sugar-laden frozen and snack food. Very good doorbuster pricing on decent quality  produce and lots of bulk bins with bigger variety and much cheaper than Whole Foods. More like the old Sun Harvest stores in San Antonio and Austin, if anyone remembers the pre-Whole Foods days. Sprouts has very little frozen but they do have a deli and fresh meat dept.

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  • 3 months later...
  • 4 weeks later...

1477659_10202101888844993_1084136840_n.j

 

Past by the construction site today and notice this sign which confirms that world market is coming to the shopping center. 

 

Also the sign is showing that mattress firm and sprint is also taking space in this shopping center

 

P.S sorry about the quality of the photo 

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  • 1 month later...
  • 4 weeks later...

Detention is not required for this project but part of the construction is in the floodplain where no net fill is allowed. It looks like the hole being dug is part of future slope stabilization and to meet the net zero fill requirement.

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  • 1 year later...
  • 3 months later...

If the LA fitness tent guys are telling it, last may, august, december etc...

I live nearby and have given up on trying to figure out that timeline. I'm more concerned with the replacement of the yale bridge. Going to be a nightmare. Just in time for them to open up the additional bike trail along white oak.

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  • 4 months later...

Any idea what the hold up is on completing the LA Fitness? Looks like they are 95% complete, but appears the thing has been at a stand still for months. Is this a function of the Yale Bridge demolition/rebuild and/or other issues? Overall, this strip center is a disappointment compared to the original renderings. Especially the afterthought of a building housing Mattress Firm/Sprint on the east side. Horrible how the butt of that structure faces Yale. The admirable attempt to soften things a bit with the Heights graffiti comes off as an epic fail. Similar disregard to streetscape as the other retail on the east side of the Walmart complex, rear of buildings facing the street.

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I live very close to here and haven't heard anything in a long time.  Seemed like there was a retaining wall issue and if past experience is any indicator the flood district has some hand in this halt/slow down.

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  • 4 weeks later...

That's interesting, there has been zero work done on the actual building for months.  This detention area had the materials delivered months ago and it appears the parking surface will extend out over this dentention area to some degree.

 

Was there an issue with the flood district that slowed down progress?  I can't imagine a GC switch would have a multi qtr impact.

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  • 4 months later...

Heard some 2nd hand news on this site. There is/was foundation issues and that is what is/was preventing LA fitness to complete.  LA Fitness stopped work and are looking to get out of that location.

 

All 2nd hand but does seem to make sense.

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