Geneseo sees grocery options dwindle: Jewel-Osco sets date for closing

Font Size:

By Doug Schorpp | Thursday, April 03, 2008 |

GENESEO, Ill. — And then there was one.

But residents of this Henry County community and surrounding towns are hopeful the reduction of grocery stores from three to one will be short-lived.

Representatives of Jewel-Osco contacted City Hall on Monday to say the company’s store here will close at the end of May.

A short time later, Mayor Pat Eberhardt was on the phone contacting grocery store chains to determine if any might consider coming to Geneseo. Monday’s news comes on the heels of the recent announcement that Aldi Food Stores will close its Geneseo store effective Aug. 17, leaving only the Fareway store in this town of 6,500 people.

“The mayor has taken action to contact other grocery stores, including Aldi, seeing if they would reconsider in light of Jewel’s announcement,” City Administrator Eric Wiederhold said Monday. “The mayor contacted four other grocers. Hy-Vee was one of them. There also were Aldi, Sav-A-Lot and Sullivan.”

Iowa-based Hy-Vee has more than 200 stores in seven Midwestern states, including several in the Quad-City region.

Sav-A-Lot Food Stores is a national chain with stores in Rock Island and Milan, Ill., and two in Davenport.

Sullivan, based in Savanna, Ill., is a smaller chain with 13 stores in northwestern Illinois — including one each in Kewanee and Princeton, Ill. Sullivan company officials declined comment when contacted Monday by the Quad-City Times.

“Jewel-Osco continuously evaluates its stores to identify opportunities to strengthen its overall business,” spokesman Miguel Alba said in a prepared statement about the closing. “While the decision to close a store is always difficult — given the impact on associates and customers — it is guided by what is best for the company’s ongoing success and future growth.

“After much consideration, a decision has been made to close the Jewel-Osco store in Geneseo, located at 465 U.S. Highway 6 East, effective May 30. About 75 employees are affected and will be provided severance packages. Some associates will be offered transfers. The property will be placed for sale upon official closing.”

The location had been home to an Eagle Country Market until the Milan-based chain closed in 2003. The building was purchased by Jewel-Osco, which opened its store in October 2003.

Aldi spokeswoman Tina-Marie Adams said Monday that the decision to close the Geneseo store was based on a lack of sales. She said the company is seeing growth in other markets, but not in Geneseo where the store was constructed in 1989, she said. The closing date is Aug. 17.

“There are three employees,” she said. “Two were offered and have taken relocations. The third still is deciding.”

When asked about the request of Geneseo’s mayor to reconsider its decision, Adams said: “Pretty much at this point this is our status: Aug. 17 is still the closing date.”

Aldi has more than 900 stores across the country, including Rock Island, East Moline, Moline and two in Davenport. Adams said the company is in negotiations to build a third store in Davenport.

Wiederhold said Wal-Mart Inc. has said it plans to tear down its existing store in Geneseo and build a Wal-Mart SuperCenter that will include groceries, but the project is currently on hold. However, the city administrator said he believes the new store will be built eventually.

“We think we have the population area to support other grocers,” Wiederhold said. “The people the mayor contacted are generally positive, so we will have to see what happens.”

Doug Schorpp can be contacted at (563) 383-2292 or dschorpp@qctimes.com.