PCC Community Markets, a community-owned grocery cooperative in Washington, shared Wednesday that its store in Downtown Seattle will close permanently on January 31, 2024.
“Despite an amazing team, fantastic store conditions, and a supportive landlord, our Downtown store has unfortunately remained unprofitable, and we do not see that changing for the foreseeable future,” said PCC CEO Krish Srinivasan in a statement. “Since continued losses pose a significant financial risk to our co-op’s long-term viability, we are acting now.”
Since opening in 2022, Downtown PCC has underperformed relative to its original financial expectations, in large part due to persistently lower numbers of office workers and residential grocery shoppers in the city center following the pandemic, according to the grocer. Based on these dramatically changed shopper demographics and habits, PCC sees no viable path to operating a profitable full-service grocery store at this location.
“To our staff members at the Downtown store, I want to express my deep sadness at having to make this difficult but necessary decision. It is certainly not due to any lack of effort on your part. Instead, it reflects the hard reality of operating a retail business in a city center transformed by the pandemic,” said Srinivasan. PCC employs nearly 80 staff at the location and will prioritize their placement in other roles within the co-op by offering staff positions at other stores.
The Downtown PCC lease was signed in 2018, and the original opening date in 2021 was postponed to 2022 because of general conditions in the area following the onset of the pandemic.
The co-op posted lackluster results in 2021, and an operating loss in 2022; despite strong progress in many areas, 2023 will be similar–even with the closure of Downtown PCC. In looking ahead to 2024, PCC is focused on restoring and securing its long-term financial viability. The closure of the Downtown store is an important and necessary step in that journey, noted the retailer.
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Image: PCC Community Markets