gothamist.com – Nell Casey
Fairway’s once robust and expanding empire in New York City seems to have fallen on some financial hardships that would take a few million cheesecakes to climb out from underneath. The company has amassed $300 million in net losses in the past five years, reports Crains, with share prices hovering around $2.16—that’s around half what they were in January.
It would appear that Fairway is having difficulty staying relevant in the gourmet grocery store boom, with big names like Whole Foods and Trader Joe’s eating away at Fairway’s base. The company’s 15 stores face fierce competition from these other stores, who’ve consistently opened new locations in close proximity to Fairway’s. The losses are evident: when Whole Foods opened its UES outpost, sales at the nearby Fairway fell by 15%. And just wait until Wegmens opens soon in Brooklyn.
As Crains points out, Fairway’s UWS store is still near and dear to New Yorkers, but with flashier options available in many of Fairway’s neighborhoods, it remains to be seen if they can make enough noise to stay afloat. At least they have more reasonable pricing going for them and a more favorable reputation on top of that.