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General News: Key Food Store Faces Financial Hurdles

The Key Food Marketplace is an anchor store in Cornwall Plaza.
The Key Food Marketplace is an anchor store in Cornwall Plaza.
February 02, 2010

What’s next for the Key Food Marketplace at Cornwall Plaza? Shoppers at the store can see that the shelves in the grocery store are holding fewer and fewer items and popular items are not being restocked.

Tony Angelucci, the district manager of JGS Corporation, which owns the store in Cornwall and another Key Food Marketplace in Highland Falls, acknowledges that both of the stores are struggling financially but says that he is optimistic that the stores either will be sold to a new owner or that the current owner will get back on its feet.

JGS Corporation, which is headed by Marty Edelstein, until recently owned five Key Food stores in the Hudson Valley. Key Foods is a cooperative that supports its independently owned retail outlets. Two years ago, JGS sold the Key Food store in Beacon and then sold a store in Mahopac two months ago, Angelucci says. A third store in Pleasant Valley was closed abruptly two weeks before Christmas and Angelucci says that the company plans to reduce the size of that store and re-open it in the spring.

Jim Ellsworth was the manager of the Pleasant Valley store until it closed in December, when he was sent to manage the Cornwall store. Ellsworth says that the store is only making small orders while the owners try to find a way out.

Angelucci says that part of Key Food’s problems result from a drop in sales in grocery stores across the board and the proximity of the larger stores in Vail’s Gate that draw a lot of Cornwall shoppers.

“I always remain optimistic that we can bail ourselves out or find a buyer,” Angelucci said. He says the store needs to get groceries on the shelves so that customers will start coming back through the door.

Key Food Marketplace has occupied the store at Cornwall Plaza for eight years. It took over after Grand Union, which had been a fixture in Cornwall for decades, went bankrupt and was purchased by a food wholesaler that sold the Cornwall and Highland Falls store to JGS Corporation/Key Food Marketplace in 2002.

The first Grand Union stores came to Cornwall and Cornwall-on-Hudson in the late 1920s and, in 1960, Grand Union built a store in the present location, demolishing a house belonging to the Chadeayne family to make room for the store and 102-vehicle parking lot. It was expanded several years later to its current size.

Town councilman Al Mazzocca worked for Grand Union for thirty years, starting as the dairy manager in Cornwall. He has seen the problems that Key Foods faces in the store and says one of the issues is the age of its equipment. “It’s been 50 years since it first opened,” Mazzocca said. “The equipment there is pretty old and it will cost a few bucks to take it over and make it right.”



Comments:

I wish Key Food the best of luck, but...
With Price Chopper, Shop Right, and Hannaford a few minutes down 32, it is hard to see things working out. It's just too much competition. I shop locally (in Cornwall) whenever possible, but there is no comparison in this case. We can only pray the space doesn't end up empty like it's neighbor. Anyone got some good ideas for a business? A solar-energy / alternative-fuel supplier or installer? Go-kart track?


posted by J Klein on 02/02/10 at 2:21 PM

This is really sad. What about an organic food market that also includes a bakery, local produce, local dairy, etc.? It seems to be working in Newburgh and this would be a great addition to Cornwall.


posted by John Vanderpool on 02/02/10 at 3:22 PM

Yep - this is a tough issue. The fact is though that Key Foods prices seemed higher, selection smaller, fresh produce quality seemed not up to par, etc. For these reasons, we stopped going there except for quick convenience trips.

Much as I support the "shop locally" idea as a concept, with a large family and stagnant income - price/value has become my prime criteria for shopping. This is why the large clubs (BJs, Costco, Sam's Club, even Walmart) and the larger traditional grocers like Price Chopper, Shoprite, & Hannafords will continue to dominate and take business away from the smaller local grocers. Sad to see it - but - inevitable I think.

And yes - this will create a hardship for those older or disabled locals who don't drive and can't easily get to Vails Gate. However, this may create the opportunity for a new delivery type service for those who could afford it. ???


posted by Chuck Trella on 02/02/10 at 3:25 PM

Wholefoods, baby! It would anchor an unbelievable Renaissance in Cornwall. You increasingly already have the right demographic in town. Interest in local and organic food is growing.

Unfortunately, a big chain like Wholefoods would be more inclined to look at a more central commercial area like Vails Gate, but a smaller outfit with enough money to update the facility might find the Keyfood space quite workable


posted by Ted Warren on 02/02/10 at 3:27 PM

The organic food market is a good idea - and maybe the local Community Food Coop could one day expand to fill this slot - however - I think this will be tough to manage in a tight economy where people tend to shop more for bargains and based on price than for premium products. For those who can afford it though it would be nice to have. Where in Newburgh is this business? Name?


posted by Chuck Trella on 02/02/10 at 3:28 PM

Great idea!! Wholefoods would do very well. Let's start the new Cornwall Renaissance Committee and that will be the first order of business. Then we will tackle the rest of the empty shops in town and get everything back to where it needs to be!! :-)


posted by John Vanderpool on 02/02/10 at 3:31 PM

The place I went to was Adams Fairacre Farms Inc. Obviously would not include the garden center but something similar with local organic food and a great bakery would be awesome! There could also be some tables and chairs inside for a fresh cup of organic coffee and a fresh pastry.


posted by John Vanderpool on 02/02/10 at 3:36 PM

Please lets all do something for a new grocery store, Key Foods is scarey!


posted by SArah Fahrbach on 02/02/10 at 5:30 PM

Time for the Cornwall Food Coop or Trader Joe's or some other alternative grocer to take over! We've suffered with Key Food long enough. The store doesn't need new fridgerators..it needs responsible clerks/mgmt to keep expired foods off the shelves. And while your're at it, move the recycling center to the side of the store. I don't like looking at garbage when I enter a food store.


posted by susan ostrander on 02/02/10 at 6:45 PM

Whole Foods....Trader Joes. That is what Cornwall needs.


posted by mary hall on 02/03/10 at 10:03 AM

Whole Foods is too large too commercial and too expensive, not right for a small town. Trader Joe's would be a perfect fit although it would bring the traffic as well. Too bad they don't franchise.


posted by Wendy Bogart on 02/03/10 at 4:23 PM

For all those interested in fresh, local and organic please support the Cornwall Community Co-op at 208 Hudson St. and www.cornwallcoop.com. For those of you who don't know, the Co-op is a community-based organization dedicated to bringing a range of high-quality, reasonably priced, fresh, local products to Cornwall and the surrounding communities. We believe in the importance of supporting and promoting local farmers, and we are mapping the diverse array of farms and producers in the Hudson Valley that might supply the Co-op. In addition to providing consumers with nutritious food from our region's farms and sustainable producers, the Co-op plans to hold events to increase community awareness of the value of locally grown and raised food.

Come visit us. Currently, we have store hours on Thursday, Friday and Saturday.


posted by Lucinda Poindexter on 02/03/10 at 5:39 PM

Just to add to what Lucinda Poindexter said about the Cornwall Community Co-op being a great source for fresh and local farm products, please note that it's a member owned and run cooperative but non-members are also welcome to shop at our store. Stop by!


posted by Lynn Peebles on 02/03/10 at 6:09 PM

To add to what Lucinda and Lynn said, the Co-Op is having its annual meeting tonight, February 4, open to members and the public. Potluck dinner at 6 and business at 7. If you care about where Cornwall gets its food, show up!


posted by Bill Braine on 02/04/10 at 7:20 AM

Ditto on the Co-op. It's a great resource in Cornwall. Everyone should check it out. I try and go every time I'm back in town visiting.


posted by Ted Warren on 02/04/10 at 11:10 AM

Not many people know this but KeyFood has a policy in which they double coupons to $1. If you have the time to cut coupons, you will get items cheaper at KeyFood than at the super stores in Vails Gate.


posted by jackie russo on 02/19/10 at 12:47 PM

Also, I think that most people don't understand the financial benefit of shopping locally.


posted by jackie russo on 02/19/10 at 12:49 PM

I know I would like to see a Wholefoods in town. If anyone else would like to see that happen there is a place on the Wholefoods website to request a store.


posted by raymond grosskopf on 02/20/10 at 10:43 AM

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