Blaming the $ 4 an hour COVID-19 risk payment recently imposed on market workers, QFC announced on Tuesday that it is closing two “underperforming” stores in Seattle, including its Capitol Hill grocery store on 15th Ave E.
“Our business offers affordable groceries, good jobs with growth opportunities for thousands of Seattle residents, and proudly supports thousands of local community organizations,” said Krogeryour grocery company announcing the closure. “We need a level playing field to fulfill these commitments. Unfortunately, the Seattle City Council did not consider that supermarkets – even in a pandemic – operate with minimal profit margins in a very competitive scenario. When you take into account the increase in operating costs during COVID-19, together with the consistent financial losses in these two locations, and this new extra payment order, it becomes impossible to operate a financially sustainable business. “
Kroger’s most recent reports show the company breaking forecasts with an increase in revenue and profits during the pandemic.
The 15th Ave E store will remain open until April 24, the company said. The 35th Ave NE store in Wedgwood is also about to be chopped.
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“Store representatives will meet with each affected associate to assist them in this transition and fulfill any contractual commitments and consider any transfer requests,” says the company.
QFC operated 13 other stores in the city.
Last month, the Seattle City Council passed emergency risk payment legislation for city grocery workers facing the continuing risks of a COVID-19 outbreak. Teresa Mosqueda bill had broad support on the board and was co-sponsored by board members M. Lorena González, Lisa Herbold, Tammy J. Morales, Kshama Sawant, Dan Strauss, and Andrew J. Lewis.
The closure of 15th Ave E QFC could leave a large gap in the commercial strip at the eastern top of Capitol Hill. But the block was reserved for possible redevelopment after developer Capitol Hill Hunters Capital bought the property for $ 11.25 million four years ago.
“Although remodeling of this building is possible, current leases make it unlikely to happen in the near future,” Hunters Capital’s Jill Cronauer said at the time. “However, we hope to create a more engaging street front for our tenants and neighbors.
A Hunters representative said the company also just learned of the QFC decision and adds that, currently, “there are no redevelopment plans”.
The closing of the QFC may also impact the future of another major supermarket chain on 15th Ave. CHS reported here the plans for an eventual reconstruction of the safe way and its large surface parking at 15 with John.
The supermarket economy on Capitol Hill has experienced a relative boom, with some of the largest recent commercial real estate investments made by the sector. At the Capitol Hill Station, an area of 16,000 square feet H Mart is being prepared to open in the center of the development’s retail and restaurant offerings.
Meanwhile, Amazon has made strong investments in the area, including the Amazon Go grocery store that opened at E Pike a year ago and in the Central District Amazon Fresh planned to debut this year in the Vulcano development at 23 with Jackson.
The closing of 15th Ave E will leave Capitol Hill with two remaining QFCs on Broadway – one on Harvard Market shopping center on Broadway and Pike and one north on Broadway market. At about 17,000 square feet, 15th Ave E QFC is the smallest of the trio and one of the chain’s smallest stores. But its 10,000 square foot surface parking lot is a rarity on Capitol Hill.
“We really enjoy serving our community on Capitol Hill and are saddened to make that decision,” a company representative told CHS.
UPDATE 13h57: UFCW 21, the largest private sector union in the state representing thousands of workers, including employees from supermarkets and retailers, called Kroger’s action “a transparent attempt to intimidate other local governments from passing decrees that would provide workers with hazard pay. frontline grocery store “
Today, Kroger has publicly announced the closure of two QFC stores in Seattle, in a transparent attempt to intimidate other local governments from passing decrees that would provide dangerous pay to supermarket frontline workers. Essential workers, our local government and our communities will not be threatened by this corporate bullying.
The COVID pandemic caused serious illness and claimed lives, and at the same time, the amount of work and the level of stress and risk for supermarket workers increased dramatically. At first, companies like QFC agreed to pay employees $ 2 / hour in compensation to employees across the country in recognition of the risks that workers faced and the essential nature of their work during a national crisis. So they cut that payment in May – with no explanation. Kroger’s profits continued to rise, as did COVID’s cases, and as more and more people fell ill and more and more people bought groceries, restaurants and schools closed.
Workers have been trying for months to get the hazard premium that was cut to be reinstalled. But, month after month, wage cuts were maintained. The level of stress increased, as did safety concerns, higher workloads, fewer shift workers, more customers and an increase in COVID boxes in stores. Several places in California have passed local hazard pay regulations. Kroger announced the closure of two stores in that area in retaliation against the local hazard premium law.
In January, things reached a breaking point and, working with the Seattle City Council, members of UFCW 21 were able to help pass a local and temporary $ 4 / hour danger indemnity law. This payment took effect on February 3. Kroger announced the closure of its stores in Seattle on February 16.
Today’s announcement by Kroger to close these two Seattle QFCs is a case of exaggerated greed and intimidation, and shows how Kroger is out of touch with our community. The public overwhelmingly supports the payment of dangerousness and supports supermarket employees. Other supermarket chains, including PCC locally, have actually expanded risk protection to stores beyond Seattle and Burien, which have now passed new risk protection laws. Kroger’s closings threaten workers, as well as buyers and our local community. We need security issues to be addressed and we need protection from risk to be expanded.
Kroger’s intention seems perfectly clear: they are announcing these closures to try to intimidate any other local community here in our state or across the country from passing on the dangerousness payment. If Kroger cares about its employees and the local communities in which it operates, they must expand hazard pay and improve store safety practices, not file lawsuits and close stores in our neighborhood.
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