BREAKING: Earth Fare to close all stores
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Asheville-based specialty grocer starting liquidation of all 50 stores, including SouthPark, Ballantyne and Steele Creek
Earth Fare, the upscale grocery chain with seven stores in the Charlotte area, said Monday morning that it is going out of business.
The company told employees this morning that it is closing its stores and holding liquidation sales.
In a statement, the company said:
Earth Fare has been proud to serve the natural and organic grocery market, and the decision to begin the process of closing our stores was not entered into lightly. We’d like to thank our Team Members for their commitment and dedication to serving our customers, and our vendors and suppliers for their partnership.
The company blamed its demise on “continued challenges in the retail industry” and an inability to refinance its debt.
Analysis: Grocery is a tough, low-margin business. You either try to sell a lot of volume cheaply, like Walmart, or command higher prices on premium goods in wealthy areas, like Whole Foods. Earth Fare was trying to compete in that latter area, with a focus on natural and organic food. Earth Fare’s demise suggests that there’s a limit to shoppers’ appetites for upscale organic groceries — or that the market is saturated with such retailers. Carrying a lot of debt can also be problematic.
The competition is fierce for wealthy shoppers who favor organics. In SouthPark, for instance, Earth Fare is essentially across the street from the Harris Teeter that used to be known as the “Taj Ma-Teeter,” and it’s just down the road from Whole Foods. Ballantyne, another Earth Fare location, also has plenty of upscale shopping options.
Earth Fare also has stores in Steele Creek, Fort Mill, Rock Hill, Concord and Huntersville.
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The Charlotte Ledger is published by Tony Mecia, an award-winning former Charlotte Observer business reporter and editor. He lives in Charlotte with his wife and three children.