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Sunday, Nov 24, 2024

Wal-Mart Doesn’t Discount Simi Valley Interest

Some communities fight Walmarts tooth and nail. Then there’s Simi Valley. The Bentonville, Ark. retailer said last month that it plans to open its third outlet in the Ventura County bedroom community, which has welcomed the retailer. Wal-Mart Stores Inc. plans to build a 32,000 square-foot Walmart Neighborhood Market at the site of a closed Vons supermarket. That’s in addition to the 125,000 square-foot Superstore and a 90,000 square-foot Discount Store already in the city of just 125,000 residents. Rachel Wall, the company’s senior manager of community affairs, noted the stores are all different concepts. “It’s three different types of stores with three different types of shoppers,” she said. The new market, which will open next year in the Santa Susana Plaza at 2204 Tapo St., will carry predominantly groceries. It will feature a self-service deli, bakery, prepared meal options, in addition to a pharmacy and photo processing center. It will employ about 65 people. Assistant City Manager Brian Gabler said the Santa Susana Plaza, which features a 24 Hour Fitness, JoAnn Fabrics and 99 Cents Only, has suffered since the Vons closed nearly 10 years ago. The new Walmart “will generate a lot of daily traffic for a shopping center that has struggled over the years,” he said. Leigh Nixon, chief executive of the Simi Valley Chamber of Commerce, noted that the location is on the east side of town, which lacks retail options. “People on that side have been leaving Simi Valley to go to Porter Ranch’s Walmart,” she said. “By them bringing it in here, it will keep people shopping locally.” The other Valley-area communities with multiple outlets are Panorama City, which has a Neighborhood Market one mile from a Walmart store, and Santa Clarita, which has two locations, with another in nearby Stevenson Ranch. Simi Valley covers a little more than 40 square miles, but all three Walmart outlets are within a four-mile span. Wahoo for Woodland Hills The Valley will have an influx of fish tacos soon as Wahoo’s Fish Taco outlets will be popping up. The quick-service Mexican-Brazilian-Asian fusion restaurant chain, based in Santa Ana, opened a 2,800 square-foot franchise at 19960 Ventura Blvd. in Woodland Hills late last month. Franchise owner Jane Casey has plans for more. She signed an agreement to build up to four outlets, and is currently looking at real estate in Thousand Oaks, Westlake Village and Northridge. But the Woodland Hills spot that she just opened was a priority. “We have an In-N-Out burger right next to us and we’re near a high school too,” she said. “This is a perfect location.” Wahoo’s is most known for its fish tacos, but offers a menu that includes chicken, beef, shrimp and vegetarian dishes, available in burritos, salads and bowls. Casey said she paid about $35,000 to the company for the franchise, but spent more than $600,000 on the build-out in a space formerly occupied by a Baja Fresh Mexican Grill. “The only thing we kept was the walk-in refrigerator,” she said. “We basically gutted it.” Wahoo’s was founded in 1988 by three brothers who were avid surfers, a prominent motif for the chain, which features logos of skateboard companies on the walls and images of surfers printed on the tables. Conrad Lyon, a senior restaurant analyst at L.A. boutique investment bank B. Riley & Co., said Wahoo’s has a better chance of success than Baja. “Baja never really renovated and the look just became dated, so people perceive the food to be dated,” he said. Wahoo’s operates more than 50 franchises in six states, including outlets in Burbank and Valencia. An Urban Wager Urban Outfitters Inc. is betting big on Sherman Oaks. The Philadelphia clothing company opened a 10,000 square-foot Urban Outfitters surplus store and a 3,400 square-foot Free People location in the neighborhood last month. The surplus store at 14608 Ventura Blvd. will carry discount-priced clothing, accessories and home décor items that didn’t sell in the chain’s stores throughout the Southern California. Neil Stern, a senior partner at Chicago-based retail consulting firm McMillanDoolittle LLP, said consumer spending hasn’t recovered completely, making the discount outlet a lucrative option. “A lot of major retailers are going big on discount outlets right now,” he said. The Free People outlet is a separate brand owned by Urban Outfitters. It features higher price points, such as jeans and dresses that can cost more than $100. In its first quarter earnings call, Urban Outfitters said the company will open 14 Free People locations in North America this year. “The Free People brand produced outstanding comp gains across all of their channels,” said Urban Outfitters Chief Executive Richard A. Hayne, in the call. The company operates more than 130 outlets of all types in the U.S., Canada and Europe, including Valley locations in Studio City, Thousand Oaks, Glendale, Burbank and Canoga Park. Staff Reporter Elliot Golan can be reached at [email protected] or (818)316-3123.

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