October 19, 2007

Evergreen Village Square

Business down, but most hope to hold out for new anchor

By Carol Rosen
Staff Writer

With only a few exceptions, most of the businesses in Evergreen Village Square have no plans to close or to move despite indications that business is down, in some stores by more 50 percent.

While business is down at Evergreen Village Square, most tenants are hoping to hold out for a new anchor. Photo by Bill Highlander

Walgreens, Edible Arrangements, Cleaners4Less, Quiznos, Burrito Azteca, Java Junction, Malanso Family Dental and the Optometry Store, the UPS Store and Bank of America have no plans to leave, although most say that business has decreased.

The abrupt closing of Lunardi’s Supermarket in Evergreen Village Square in early September surprised everyone and caused concern about the future of the mall. But while many of the businesses note that traffic has decreased, only one indicated a possible closure, and that’s only if no new anchor grocery store moves into the area soon.

All the businesses, however, with only a couple of exceptions, say that the decreased foot traffic has negatively impacted their bottom line. They are hopeful the new Pacific Coast Farmers’ Market (see story, page 1) will bring in additional traffic, even though a number are closed on Sundays.

“If residents from the area continue to patronize these stores, then there will be no more problems,” says Rose Herrera, who started Involved Evergreen after Lunardi’s closed. At least 3,000 people signed the petition she created after the grocery store closed, in order to help save retail business at the square. About 150 people have joined Involved Evergreen’s on-line news group, and the group will be forming a steering committee within the next few weeks.

Herrera is also working with Shappell Industries, which built Evergreen Village, to help keep it a marketable enterprise. She’s been involved with helping bring the farmers’ market there as well as working with Vice Mayor Dave Cortese’s office, the city’s Planning Department and Shappell to ensure the square’s viability.

One positive reaction to the dilemma was the City Council’s passage to increase signage for the square. Because it sits well off Aborn Road, the city approved and Shappell has designed signs that will be put up directing shoppers to the area.

“These are monument [large] signs that are built to attract business and bring customers and more business to the square,” Herrera said.

There are rumors that Lunardi’s is talking to potential grocery stores to sublease the store in order to eliminate a lawsuit Shappell has filed against it. Herrera said she hopes these rumors are true. Involved Evergreen wants to see a store that suits the customers’ needs in product mix and diversity. In addition, her group is seeking further retail development around the square as well as perhaps a sit-down restaurant, possibly with tablecloths since there are few to none throughout Evergreen.

Walgreen’s, others – no plans to close
Officials from Walgreen’s, which opened in January 2006, state, “We’ll be here.”

The pharmacy, open 8 a.m.-10 p.m. Monday through Saturday, and 9 a.m.-9 p.m. on Sunday, plans to continue its service to the Evergreen area. The management reflects the diversity of the neighborhood by speaking and filling prescriptions in 14 languages.

The pharmacy, led by Swan Nguyen, has a drive through capability, and offers mail service. She is planning on providing home delivery of prescriptions.

Some Village Square establishments like Quiznos and Burrito Azteca have seen an increase in business, as has Java Junction, according to clerks in all three.

“Business is pretty much the same as before in the afternoons since Lunardi’s closed,” said Keith Silva, a barrista at the coffee shop. “But with Peets [which was located in the grocery store] closed, business has picked up a bit in the morning, although the square has been quiet,” he added.

The new farmers’ market will likely bring more people in, especially in the mornings since it will open at 9 a.m., Silva said.

“Lunardi’s closure was definitely not a positive thing,” said Essi Mansoori of Cleaners4Less, “but it’s a little bit too early to decide either way. It has definitely slowed down some, but we have no plans to move or to leave and we are hoping to get another [anchor] store soon. Nothing replaces an anchor store,” he added.

“We’re not going to close,” said Dr. Jessica Malanso of Malanso Family Dental. “The square is quieter but there are new businesses coming in. I heard that another business will be opening next to Java Junction, and that Shappell is working hard to get another business to come in as an anchor.”

“We are suffering, and everyone is feeling it,” said Jaskiran Brar of the Kayaa Spa. “But we are not thinking of closing.”

Her neighbor, Judith Lee of Evergreen Beauty Supply notes that business has been really slow since Lunardi’s left; about half of what it was. She too said she has no plans to close. Like other business managers, she commented on how quiet the square has become.

Another business, which hopes it won’t have to close, is really suffering. Marble Slab Creamery’s business has decreased significantly since Lunardi’s closed, said manager Anthony Hayter, “and the big question is how long we can stay open [at this rate]. We see it [the lack of foot traffic] most on weekends,” he said, and it’s possible the store might close because his costs of labor, food, utilities and rent are the same even though business has dropped.

However, he has hopes a new grocery store will come in before he is forced to close. “A store like Trader Joes here, would generate more foot traffic than Lunardi’s at its peak. We’ll see what kind of relief is coming from Shappell,” he said, “but if there’s no help we may have to close soon.”

Edible Arrangements has no plans to leave, said assistant manager Kenyatta Boyd. While she admitted traffic has slowed, “ a lot of our walk-in business came from Lunardi’s,” but the store gets much of its business by phone and from the Internet.

New store?
Talks are underway and a couple of grocery stores are quite interested in taking over the site, said one source, who asked to remain anonymous.

There have been conversations and interest, said Kelly Erardi, vice president of Shappell Industries. However, he did not want to add any information at this time.

Shappell has sued Lunardi’s, demanding they reopen, but a Lunardi’s spokesman says that’s not going to happen.

“Lunardi Foods has been ordered to appear in court on Oct. 29 to explain why a preliminary injunction should not be issued requiring it to reopen its supermarket located at the Evergreen Village Shopping Center in San Jose,” said one Shappell release. “The hearing will take place at 9 a.m. before Santa Clara Superior Court Judge Kevin McKenny.”

Shapell suit demands Lunadi’s honor the terms of a lease requiring continuous operation of the supermarket through Nov. 12, 2010. It also wants Lunardi’s to return $1.25 million in financial concessions the developer made to the supermarket between 2004 and 2006 to help the supermarket operate at a profit.

“Lunardi Foods has opposed our request for an injunction by claiming that money will adequately compensate Shapell for damages related to the supermarket going dark. This ignores the impact on our tenants and the community and the potential long-term implications for the center. We intend to do everything reasonably possible to require Lunardi Foods to reopen the supermarket at the Evergreen Village Center and look forward to presenting our case at the hearing on Oct. 29,” Erardi, said.