SEATTLE — PCC Community Markets announced on Wednesday the downtown store will close permanently on Jan. 31, 2024, due to a consistent lack of profits.
The local co-op grocery store chain struggled with an increase in the cost of goods, inflation impacts, staff retention and public safety, according to a Nov. 1 news release. In 2022, PCC operated at a loss.
“Despite an amazing team, fantastic store conditions, and a supportive landlord, our Downtown store has unfortunately remained unprofitable, and we do not see that changing for the foreseeable future,” said CEO Krish Srinivasan in a statement. “Since continued losses pose a significant financial risk to our co-op’s long-term viability, we are acting now.”
Srinivasan also cited a lower number of office workers and grocery shoppers in downtown due to the pandemic.
The 80 staff members at the downtown location will be placed in other positions at different stores, Srinivasan noted. There are 15 other stores in the region, with seven in the city of Seattle.
The 4th and Union location opened in January 2022, after signing the lease in 2018. The postponed opening was due to pandemic conditions.
The Downtown Seattle Association (DSA) responded to the news in a statement, saying it was a "disappointment" and "unfortunate" for downtown residents.
"Today’s announcement could be viewed as turbulence in downtown’s post-pandemic revitalization, but downtown’s overall flight path and progress remains positive with increasing foot traffic, a record residential population and more store openings than closings," DSA said in a statement.
According to the latest DSA report on Downtown Recovery with September numbers, there were more than 83,000 daily workers, which is less than the previous month, but is a 21% increase from September last year.
Furthermore, the report states in September, there were 57,000 occupied apartment units, which is an increase of around 2,100 units over the past 12 months.
PCC is not the only chain to close its location in downtown Seattle.
This is happening after Rite Aid, the parent company of Bartell Drugs, filed for bankruptcy protection in October. The Bartell Drugs downtown location, at 910 Fourth Ave., closed in July. On Sept. 10, Bartell Drugs on 600 1st Ave also closed its doors.