Whole Foods closing Englewood grocery store after six years

Many shocked as Englewood Whole Foods is set to close

CHICAGO (CBS) -- Whole Foods will be closing its store in Englewood, six years after opening a grocery store in what had once been a food desert on the South Side.

A Whole Foods spokesperson confirmed the company is closing six out of its more than 530 locations nationwide, including the Englewood location at 832 W. 63rd St. and their store in the DePaul University Welcome Center at 959 W. Fullerton Ave. in Lincoln Park -- a former Dominick's. The other stores closing are in Montgomery, Alabama; Mobile, Alabama; Tarzana, California; and Brookline, Massachusetts.

"As we continue to position Whole Foods Market for long-term success, we regularly evaluate the performance and growth potential of each of our stores, and we have made the difficult decision to close six stores. We are supporting impacted Team Members through this transition and expect that all interested, eligible Team Members will find positions at our other locations," a Whole Foods spokesperson said in a statement.

The Englewood store opened in September 2016, at the time bringing an end to a food desert in the neighborhood. Although another grocery store, Go Green Community Fresh Market, opened in Englewood earlier this year, and there is also an Aldi grocery store on 63rd Street, the loss of Whole Foods will undoubtedly be a blow to the neighborhood.

"We have very, very limited access to smoothies, to fresh fruit, to a bright-lit store," said community leader Asiaha Butler of R.A.G.E. Englewood.

When the store opened, a line wrapped around the brand-new Whole Foods, with crowds out front and a shoppers packed inside.

Whole Foods closing store in Englewood

As CBS 2's Tara Molina reported, the opening was a big deal in Englewood. The Whole Foods was first store of its kind on the city's South Side – which meant something to a community that, at the time, was living in a food desert.

The store anchors a larger commercial complex at the corner of 63rd and Halsted Streets. Ahead of construction of that shopping center, the City Council voted in 2014 to spend $10 million in tax increment financing to prepare the city-owned land to be used for the site for future construction, including environmental remediation and infrastructure work. After that work was completed, the city sold the land to the developer of the Englewood Square shopping complex for $1, according to a spokesman for the city's Department of Planning and Development.

At the time the Whole Foods opened in Englewood, the company hailed its efforts to team up with 35 local businesses that would be providing products to be sold at the store.

The Whole Foods in Englewood was the chain's first store on the South Side of Chicago, and at the time, the company said it was excited to expand to the South Side.

"We have been looking to expand further south for many years and this new store will help offer more Chicagoans fresh, high quality foods right in their neighborhood. We're excited to work together with the city and local community long before we open our actual doors to build a custom store that meets the needs of Englewood," said Whole Foods regional president Michael Bashaw at the time.

Chicago Department of Planning and Development Deputy Commissioner Peter Strazzabosco said the property where the Englewood Square Shopping Center that includes Whole Foods now stands was city-owned prior to development. The city spent $10 million to prepare the land for future construction.

The funding for preparing the land comes from the city's Tax Increment Financing program, which provides hundreds of millions of dollars in property tax revenue to projects in designated districts across the city.

Strazzabosco said Whole Foods did not directly receive any TIF funds or other assistance from the city.

We talked to a number of people really disappointed to hear the store is one of six Whole Foods stores closing nationwide.

"I'm shocked that they're closing," said Orzella Denton. 

"I did like the model in which they entered, but I hate the model of which they're exiting," Butler said.

A Whole Foods spokesperson told us people who work at the Englewood location will have the option to move to another store. But when the store opened there was an emphasis on hiring people from the community - and for those working at the Englewood because they live in the community, it may not be that easy.

"For those that don't have cars, a lot of transportation is harder - but this is actually walking distance for most of us," said Englewood resident Katrina Falkner.

Once the Englewood store closes, Whole Foods will have only two stores south of Madison Street in Chicago -- in the South Loop and Hyde Park -- with eight stores north of Madison. There are eight stores north of Madison.

The closing of the DePaul location won't have nearly the same impact on Lincoln Park, which has a wealth of grocery store options in the neighborhood.

However, the announcement of the closings comes only two days after Whole Foods opened a new 66,000-square-foot store on the border between River North and Gold Coast, at 3 W. Chicago Av., replacing the existing nearby store at 30 W. Huron St.

Late Friday, Mayor Lori Lightfoot issued the following statement on the pending Englewood Whole Foods closure.

"Amazon's decision to close stores in Englewood and Lincoln Park as part of a nationwide closure of stores is obviously disappointing. My immediate worry is for the workers in both locations. Amazon must now take clear steps to protect those workers as they transition to new opportunities. Having been in both of those stores many times over the years, I saw first-hand how those workers gave their heart and soul to make the stores a success. Together with both communities and local elected leaders, my administration will work to repurpose these locations in a way that continues to serve the community and support the surrounding businesses. We as a city will continue to work hard to close food deserts that meet community needs with community at the table."

DL3 Realty developed the mall. Molina talked to the owner, Leon Walker, on Friday, and he said he is optimistic they'll find another store to fill the Whole Foods space. He calls this a good opportunity for the neighborhood.

Sources said the Englewood Whole Foods is expected to close "in the coming months." The DePaul store is set to close by May 6.

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