February 19–26, 1998

city beat

Market Economics

How are Philadelphia Farmer's Markets faring against Fresh Fields? The answer, despite initial concerns, may be a qualified just dandy.

by Karin Samoviski

As a city that boasts the country's oldest open air market, at Second and Walnut, Philadelphia has always been a haven for farmer's markets. People are drawn to these markets not only for the selection and low price of fresh produce, meat and seafood, but for the sense of community they offer.

But can this community survive the onslaught of stores like Fresh Fields, a chain of supermarkets offering fresh and organic produce, natural and specialty foods and merchandise?

The answer, despite initial concerns, may be a qualified yes.

At the end of 1996, the thought of Fresh Fields opening in the Art Museum area left many merchants at local markets uncertain of their future. Merchants worried that Fresh Fields was sure to give them a run for their money.

One year later, Fresh Fields has found a home in Philadelphia and area farmer's markets have remained strong.

Bill Coleman, manager of the Firehouse Market in West Philadelphia, attributes his market's stability to the difference in the two markets' customer base. According to Coleman, there has been essentially no change in the market's demographics: 86 percent African American, 11 percent white and 3 percent Asian. As a result, he says, the loss of mostly white, middle-class customers did not affect business. Since it opened in 1988, the Firehouse Market has held a 97-percent occupancy rate and sales have remained steady over the past year. The Firehouse Market began with the idea of allowing the surrounding community to structure the business, therefore better being able to service its community's needs. Although sales are stable, Coleman says, "We are consistently paying our bills, but no one is getting rich." He is hopeful that with the construction of a large medical complex down the road, merchants at the Firehouse Market can expect an increase in lunch traffic.

The general feeling is that there is a place for everyone in Philadelphia. Howard Waxman, owner of Essene market on South Fourth Street, says the one good thing that has come out of the addition of Fresh Fields is that it has made people "more aware of natural foods," which he always favors. But Essene, which sells almost the same merchandise and services as Fresh Fields, has felt the supermarket's effects. It has taken a year to recover from the initial loss of business, says Waxman, and he still has not seen the expected annual increase in sales.

Fresh Fields' Ramone Charves believes that the supermarket has found a place in the community alongside smaller merchants and local businesses. Charves, a buyer, uses merchants from Reading Terminal as well as other local suppliers. The boost in competition between Fresh Fields and local markets is something the customer will benefit from, and there is enough diversity and uniqueness that no businesses should suffer.

But it is the connection to the community that gives local markets an edge. Where a corporate-based supermarket pours money into advertising and marketing, a market like Firehouse is rallying community support by offering something back. Several years ago, the community came together to build a staircase to the third floor of the old Firehouse, enabling a pair of artists to set up an installation there.

The Firehouse Market is not alone in having to deal with Fresh Fields.

Within the first few months of the supermarket's opening, purveyors at the Reading Terminal Market felt the heat. People wanted to find out what all the fuss with Fresh Fields was about. Though the supermarket offers the same basic selection of meat and produce, it lacks the specialty items that make Reading Terminal unique—that's what brought people back to the terminal. And with the return of loyal customers, so return the profits.

The market has recovered the initial loss, says Bill Dellaratta. But the biggest problem merchants are facing now is parking: Fresh Fields has the advantage of free parking; parking near the Reading Terminal Market is expensive and not always easy to find. "A proposal to solve the parking problem is now in the works," assures Dellaratta.

What remains to be seen is whether South Philadelphia can survive the opening of a second Fresh Fields at 10th and South Streets. Some believe that the Italian Market would put Fresh Fields to the test. And few people would disagree that the Italian Market, which runs along Ninth Street, offers the most abundant produce at low prices. But, with the opening of another Fresh Fields along Route 73 in New Jersey, plans to open the South Street store have been put on hold, and it is rumored that they are looking at Old City as an alternative to the South Street location.

But the effect of a Fresh Fields on South Street might be felt more by the people living in the neighborhood than by local businesses. The area surrounding 10th and South Streets has the highest concentration of federal supplemental security income recipients in Philadelphia, who are dependent on a low-price supermarket. If Fresh Fields pushes SuperFresh out, residents could be without a discount grocery store.

Regardless of Fresh Fields and whether it will find a home on South Street, Ed Barranco, owner of Chef's Market at Second and South, is in the process of building an addition to expand his store. He says he is motivated by the increased competition.