Last week, the couple who owns the wine shop and tasting room Barsha were getting ready to celebrate two birthdays: the third anniversary of their store, and the birth of their second daughter.
Since Adnen and Lenora Marouani opened Barsha on Sepulveda Boulevard, business has been good. But Adnen worries about the proposal to open a Gelson’s market two blocks from his shop.
“We’re not afraid of competition,” he said. “Competition is healthy. But it’s a big corporation. What happened to the small mom and pop shops?”
He imagined a possible scenario if Gelson’s, which has included a tasting room in its preliminary plans, opens.
“If you’re at Gelson’s, why would you go see Adnen?” he asked. “If you’re getting some cheese, you think, ‘Let me pick up a bottle of wine.’”
The Manhattan Beach Chamber of Commerce, of which Barsha is a member, sent out a press release stating its support for the project in August.
“Following a thorough vetting process, the Manhattan Beach Chamber of Commerce, representing more than 450 members and 29,000 employees in the South Bay, has formally endorsed the Gelson’s project located at the former vacant car dealership/collision center site on Sepulveda Boulevard at 8th Street in Manhattan Beach,” the press release said.
But Marouani and the owner of the grocery shop Grow, Barry Fisher, who both pay membership fees to be part of the chamber, said they were never asked for their opinions.
Jim O’Callaghan, the president of the chamber, said it was the board who took the position.
“On behalf of the board, we take into account that we are a 400-member organization and try to make the best decision for the entire group,” he said. “It’s not possible to please everyone.”
He also said that Fisher was the only member he’d heard from that was unhappy.
Fisher, whose store is eight blocks north of the Gelson’s site and employs 22 workers, echoed a complaint that some of the residents who are opposed to Gelson’s have made: that a new grocery store wouldn’t generate new sales, but rather would “cannibalize” other businesses.
“People eat the same amount of food,” said Fisher. “It’s unlike a restaurant, which spurs demand.”
O’Callaghan said it may reduce some sales, but that the overall picture supported adding Gelson’s.
“Any kind of new business in a similar sector will cannibalize some portion of business,” said O’Callaghan. “We have a lot of grocery sales leaking out of the community because there’s not enough to sustain them.”
He pointed to a leakage study prepared by NAI Capital, an international commercial real estate company, that said the city was losing out on about $29 million in grocery sales.
Some opponents disagree with the study’s methodology and believe that number isn’t accurate.
They also say that another grocery store would bring minimal revenue to the city, since only certain items are allowed to be taxed in California.
Three percent of the city’s taxable sales were from food stores in 2013, according to the Comprehensive Annual Financial Report on the city’s website.
Fisher is particularly concerned about the parking variance that Gelson’s was seeking as of its latest plan, saying it wasn’t fair. City code requires a certain number of parking spots for the square footage of a store, and Gelson’s has asked for an exemption.
“Everyone should be on a level playing field,” said Fisher. ER
