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Why didn’t the Brownsburg Zoning Board force Kroger to terminate the lease on the former Marsh location on US 136 as part of its approval of this new construction? Kroger has a monopoly on the food supply in Brownsburg since Marsh closed its stores. (and I’m sorry but the market share held by all other grocery options is miniscule at best).
That’s a good question, Mark. The Wal-Mart Super Center across the street is the only real competition Kroger has in Brownsburg. I don’t think their market share is minuscule, but Kroger could indeed use more competition.
That’s a great point, except: unless there is a zoning petition affecting the property pending before the board, the zoning authorities cannot assume jurisdiction. Even IF there were a pending petition, Indiana law doesn’t facilitate these kinds of “deals.”
Typically, if a category-competition arrangement is made, it’s done between developers, or by an economic development organization, as part of a larger incentive deal. This story doesn’t mention whether the Brownsburg or county economic development officials put incentives into this overall deal. I doubt it–none were needed. The redevelopment seems to be taking place, driven by market forces and interaction among the players: shopping center owners, retailer, and the entity which controls the former KMart space (if it’s still under bankruptcy court control), without local government incentives being needed.
As for competition….Wal-Mart is typically a market leader because of their aggressive pricing. Kroger is a strong match in that regard. Wal-Mart’s Brownsburg food market share is likely not miniscule. In almost every market Wal Mart is in, they’re dominant or close to the top. This is to food chains going head-to-head, each with massive buying power.
So there will now be three Starbucks locations in Brownsburg, all within walking distance of one-another. The town is becoming New York City in that regard!