Pardon the Disruption is a column that looks at the forces shaping food retail.
PCC Community Market’s first foray into downtown Seattle did not go according to plan. The store it opened at the base of the Rainier Tower office complex in 2022 lasted just two years before closing — a casualty of the pandemic and the remote work trend that rattled so many urban retailers.
But a lot has changed in the city center recently. Office workers and tourists have returned to downtown Seattle, boosting foot traffic closer to pre-pandemic levels. And PCC says it’s learned a thing or two from its first venture about how to connect with urban shoppers.
So the cooperative grocer is giving it another go with a reimagined store that opened earlier this month at the same site as its former downtown location. At 6,500 square feet, PCC Corner Market is less than a third the size of the previous store, but still able to meet the quick-shop needs of locals, office workers and tourists who don’t have many other grocery options in the area, according to CEO Krish Srinivasan.
“It’s a smaller version of your neighborhood co-op, serving a big need in downtown Seattle,” Srinivasan said in an April announcement.
Half of PCC Corner Market is devoted to fresh meals, including a hot bar, salad bar and grab-and-go items, while the other half is dedicated to a curated selection of groceries. In the middle sits a bank of self-checkout machines overseen by one or two staffers. To save space, the store doesn’t have any manned checkouts.
Small-format retailing has proven challenging for grocers, with concepts from Kroger, Stop & Shop and Publix closing down in recent years. However, companies like Whole Foods Market and Target still see considerable promise in scaled-down locations. Whole Foods recently opened its third Daily Shop in New York City.
Will PCC Corner Market succeed where its former location failed? It’s only been a week in, but so far the reception has been encouraging, store manager Eli Dorr-Fay said earlier this month when Grocery Dive visited the location.
“People are really excited we’re back,” he said.
Here’s a look inside PCC Corner Market.
A strategic design
PCC is hoping its new scaled-down store will prove more appealing to customers than its earlier, much larger iteration.
PCC Corner Market includes a curated selection across the same core departments its full-size stores offer, Dorr-Fay said, including produce, dairy, frozen meals and beer and wine. That should help facilitate the sort of quick, low-frills shopping that apartment dwellers and harried office workers value.
The store features two entrances: A street-facing one that’s mainly used by residents and tourists and another that opens directly into the foodservice department via the Rainier Square office complex.
The grocer is also hoping to solve another problem with its revamp of the space at the base of the 58-story Rainier Tower.
In the coming months, PCC plans to relocate its headquarters to sit adjacent to PCC Corner Market, according to a company spokesperson. The move maximizes the space it’s using on a 10-year lease and also addresses local criticism that the company’s current headquarters is too large and pricey, according to The Seattle Times.
Focusing on lunch
PCC Corner Market’s operating hours reflect a focus on local office workers. The store is open weekdays from 7 a.m. to 6 p.m. and is closed on weekends.
To maximize sales during those daytime hours, it offers a wide range of meal options, with a particular focus on the lunch crowd. Selections include fresh-made sushi, grab-and-go sandwiches, pizza and a full hot bar and salad bar.
Customers who visit in the morning hours can fill up on self-service coffee, baked goods and breakfast sandwiches.
To help move customers through the self-checkouts during busy periods, Dorr-Fay said workers will direct customers to a special queuing section near the payment terminals.
An innovation hub
Retailers like to test out their latest innovations close to headquarters. That’s certainly the case with PCC Corner Market, which serves as a testing ground for the latest technology and meal innovations for the company, said Dorr-Fay.
The small-format store is currently piloting digital shelf tags to see if they could work across the chain. It’s also sizing up a new focaccia pizza in the foodservice department.
Catering to tourists and residents alike
With numerous hotels located nearby and a surge of cruise ship passengers flooding Seattle during the spring and summer months, PCC is hoping its new market will be a hit with tourists.
In addition to its many grab-and-go items, the new store offers travel-size products like toothpaste, floss and lotion, as well as small collectibles like mugs and water bottles. For those looking for something a bit edgier, there’s $45 vodka in a bottle shaped like the iconic Space Needle.
PCC Corner Market is trying to offer an assortment that appeals to both consumers who are passing through the city and those who live there. Dorr-Fay said one of the store’s most popular products so far is milk, indicating the new format has struck a chord with local residents.
