The Return of the Neighborhood Grocery Store

Urbanism

Recently, one of my favorite follows on X and Blue Sky, Steve Mouzon (@stevemouzon), posted a picture capturing the charm of a neighborhood grocery store. In this, he writes “without it this neighborhood would be a food desert.”

This is a single-crew grocery in Beaufort, SC. One grocer, 16' x 32', carrying just the basics. But without it this neighborhood would be a food desert. in business for 99 years in one family, which live in the cottage next door. Humble but charming. Every neighborhood needs one.

— Steve Mouzon (@stevemouzon.bsky.social) 2024-11-11T23:07:47.986Z

Unlike a big-box store, this shop looks more like a small cottage. It’s a reminder of how small-town stores once looked across the U.S., before zoning codes “fixed” supposed issues.

Grocery Trends

Over time, grocery stores grew larger, spreading farther apart. Many small stores closed, repurposed as gyms, churches, or even shooting ranges. Meanwhile, major grocers built even bigger stores, placing them at car-friendly distances, ten to fifteen minutes away.

Further complicating things, grocers now contend with delivery services from chain stores and options like Amazon, HelloFresh, and Walmart, which bring groceries straight to the doorstep.

I view delivery services as part of the solution to restoring neighborhood grocers. Like wholesale warehouses (Costco, Sam’s Club) changed shopping in bulk, delivery reduces the need to visit the store frequently but can’t replace it completely.

Today, walkable grocery stores are rare. Outdated zoning codes still present a challenge, although some flexibility is emerging. Parking remains a priority for many chains and cities, focused on peak demand.

Profitability is a struggle for both big and small grocers. Margins are thin, waste is high, and labor demands are intense—making “right-sizing” a store critical to success.

Local Examples

In Colorado Springs, a few spots embody the neighborhood grocery concept within a ten-minute drive of downtown. Bread & Butter, downtown, is a great example. Its local owners designed a beautiful grocery experience, one of our first projects at Urban Landscapes.

Bread & Butter, located on South Nevada, in the increasingly popular New South End Neighborhood, is small grocery store rich with local foods.

Ranch Foods Direct, another excellent example, brings a butcher shop approach, offering hormone-free meats and locally sourced foods. Both Bread & Butter and Ranch Foods Direct serve distinct neighborhoods, creating a localized experience.

Nearby, Lincoln Center hosts Nightingale Bakery, a popular local spot with lines out the door even during snowstorms. It’s joined by like-minded businesses, including Building Three Coffee and Goat Patch Brewery, creating a vibrant, walkable community.

Planning for the Future

In our projects, we strive to foster this organic, local approach. At Gold Hill Mesa, we’ve long advocated for a small grocery footprint. We envision a 6,000 to 25,000 sq. ft. grocer fitting perfectly into the neighborhood fabric.

A similar vision is shaping our work in South Trinidad. There, we’re planning a pedestrian-friendly neighborhood grounded in New Urbanist principles. Proposed zoning would allow flexibility for small businesses on the ground floor of homes—grocers, cafes, offices, and more.

This incremental, community-focused approach worked well before restrictive zoning, and today, we’re carefully planning zoning to support organic growth once again.

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