Contact: Lori O. Willis, Dir. of Communication
Schnuck Markets, Inc. (314) 994-4602
Dec. 6, 2002
Schnucks Announces Plans to Build and Open Three Mid-South Stores in 2004
MEMPHIS, TENN. -- Just six months after buying, remodeling and reopening 12 supermarkets in the Mid-South, St. Louis-based Schnuck Markets, Inc. has announced plans that will infuse an additional $40 million into the local economy.
Craig Schnuck, chairman and chief executive officer, says that in an effort to better serve customers, the company will build two brand new stores and replace the Schnucks store currently at 1980 South Germantown Road. All facilities are scheduled for completion in 2004.
The new Germantown store will face Farmington Road and will be built to the east of the existing facility on an 8-acre parcel of land (now vacant). Detailed plans are being submitted today in order to commence the approval process. Schnuck said, "Germantown officials have been receptive to our redevelopment concept and we hope to obtain the necessary approvals and permits by spring of 2003."
Once the new 63,000-square-foot store opens, the existing Germantown store and Super D drug store will be demolished and replaced by approximately 30,000 square feet of new retail space (including a relocated drug store). The result will be a brand new
15-acre shopping center which will accommodate the existing AutoZone building at its present location.
One of the new locations will be in Collierville at the northwest corner of Poplar and New Byhalia. The other will be located at the southwest corner of Highway 64 (Stage Road) and Fletcher Trace Parkway (In the northeast area of Memphis). These stores will also be approximately 63,000 square feet in size and both will anchor new neighborhood shopping centers. As with Germantown, Schnucks intends to submit development plans to the respective municipalities later this month.
"Each project offers development challenges unique to the site. The two new locations are subject to satisfactory completion of normal due diligence studies, and of course, all plans are subject to the approval processes of the various municipalities." Schnuck added, "We look forward to working with all agencies to bring quality development to each location."
"Most, if not all, of the construction work will go to local tradesmen and subcontractors. Once the stores open, an additional 400 new retail jobs will be created. This will mean promotion opportunities for our current associates and new career options for those who want to join our team," said Schnuck.
After the necessary approvals have been obtained, The DESCO Group, a St. Louis-based real estate development company, will handle construction, leasing and management work. DESCO manages all Schnucks corporate real estate interests.
Mark Schnuck, president and chief executive officer of The DESCO Group, says, "I believe in the synergy of these projects, and having these fabulous new stores as anchors makes this a terrific opportunity for our retailer partners."
Talks are already underway with national retailers with whom The DESCO Group has had long-standing relationships, but Schnuck says he is excited about developing new partnerships with local retailers. "Many have already expressed interest," said Schnuck. "We hope that by next summer we will have received commitments for a good portion of the space in each planned center."
Tentative plans allow for approximately 30,000 square feet of retail shopping space at both Germantown and Fletcher Trace Parkway and approximately 18,000 square feet at Collierville. Developments at Collierville and Fletcher Trace Parkway will each include a freestanding site for additional retail and restaurant options. "Pending municipal approval, collectively on these projects we have the potential to develop 75 - 100,000 square feet of retail space," said Schnuck.
Craig Schnuck says this aggressive expansion plan is just another indicator of the level of commitment the company has for its newest venture. "The people of the Mid-South have been very accepting and supportive of our efforts. Their support has helped reaffirm our original decision and facilitated plans to expand and serve growing areas of the community," said Schnuck.
Extensive remodeling is currently underway in many of the newly acquired properties. However, the Germantown store is one of the older facilities (built in 1974) and in need of more work than a mere remodel would bring. "It's important that we bring that store in line with the look and feel of other area Schnucks stores. In this case, we felt the best way was to rebuild," Schnuck explained.
He added, "Our remodeling and construction teams have been doing a great job renovating our stores, but I am excited to have these three opportunities to show residents of the Mid-South what we can do when we build a Schnucks store from the ground up."
Karen Tolan, Schnucks Mid-South division manager, assures customers that the relocation of the Germantown store will be a smooth process. "As you witnessed during the June 5 conversion, we do everything we can not to inconvenience our customers. Our plans will call for the existing location to close on a Sunday and the new store to open on the following Tuesday," said Tolan.
Schnuck Markets, Inc currently operates 102 stores and 93 pharmacies in Missouri, Illinois, Indiana, Wisconsin, Mississippi and Tennessee. The company is listed 83rd in the Forbes Magazine listing of the nation's "Top 500 Private Companies." The family-owned company was founded in St. Louis in 1939.
The DESCO Group, founded in 1993, provides corporate real estate services, development, brokerage, property management and construction management services. DESCO specializes in delivering this broad range of comprehensive real estate services to corporate clients, institutions, private investors and emerging growth companies. The St. Louis-based firm is active in Missouri, Illinois, Kansas, Indiana, Oklahoma, Louisiana, Iowa, Tennessee, Mississippi, Wisconsin and Arizona. The company's 45-member staff manages, leases and provides corporate services at 174 retail, office, and industrial properties totaling over 11.6 million square feet.
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