‘Finding their niche’: The Fresh Market is back to opening stores in the suburbs, this time in redeveloping areas

Despite having shed a few stores in recent years, The Fresh Market grocery chain based in North Carolina is in the midst of a true growth spurt, bringing its distinct stores to redeveloping areas of the suburbs.

Its eight Chicago-area locations include new ones in Naperville, Northbrook and Algonquin, with two more on the way to the redeveloping Yorktown Center in Lombard and The District at Veridian in Schaumburg.

Among its recent and future suburban sites, there appears an undeniable emphasis on new construction rather than taking over abandoned spaces.

The March opening of a 27,000-square-foot store at the Algonquin Commons shopping center in Algonquin brought the company’s fourth new location to the region within five months.

Algonquin Community Development Director Patrick Knapp said The Fresh Market is part of an intensive upgrade of the shopping center that began four years ago.

“It does mean a lot to the village to bring in a high-quality grocer like The Fresh Market,” Knapp said. “We didn’t have a large grocer at the south end of town. It’s an experience as well as a grocer. You need to go there to experience it. You can get dinner to go while you’re there.”

Knapp believes the company may have been recognizing opportunities to rebrand itself with the added amenities and construction change orders that were part of its roughly two-year build-out. Its influence might already be showing in the plans of one of its competitors to add a coffee bar.

“I think The Fresh Market is really looking at the market and being a leader,” Knapp said.

While things are on the upswing now, it’s not because of a flawless first take on the Chicago-area market, according to John C. Melaniphy, president of the Chicago-based retail consulting firm Melaniphy & Associates.

Before the current wave, The Fresh Market closed its stores in Lincolnshire, Kildeer and Glen Ellyn, Melaniphy said.

“It’s a highly competitive market, but they’re finding their niche,” he added. “They are reorienting themselves to the Chicago market. It’s all about location, location, location and their customer profile. It will take time to see how they grow and develop their customer base.”

The locations the company is targeting demonstrate a strong average household income and population growth. The Schaumburg location, for instance, will anchor a high-density residential development following recently completed ones nearby, Melaniphy said.

The numbers alone can explain The Fresh Market’s interest in the Chicago-area market, as well as specific areas such as Schaumburg where a late 2026 opening is anticipated, he added.

Last year, the retail grocery market in the Chicago region generated $21.6 billion, a 7.7% increase from the year before, Melaniphy said. And Schaumburg’s 2024 grocery sales were $328 million of the village’s overall $4.2 billion in retail sales.

“That’s how big the pie is, but it’s getting divided up in different ways,” he said.

While vacancies in older buildings now are declining, thus bringing larger rents for new construction, The Fresh Market is likely encountering a welcoming business environment, Melaniphy said.

“I think this is an excellent time to come into the market, when landlords and developers may be hungry for a new tenant,” he added.

And many of the attributes of The District at Veridian also can be found at the redeveloping Yorktown Center, according to its Marketing & Business Development Manager Gayle Gleespen.

“The center is undergoing a major reconstruction, adding residential,” she said. “We’re evolving the traditional shopping center experience. We’ve always had the vision of having a more boutique grocer. (The Fresh Market is) very (well) known for being a boutique grocer.”

The store is expected to open in Lombard later this year. But Gleespen said her anticipation of the finished product is based on her experience of the Naperville location.

“Everything is very clean,” she said. “You walk in, you’re greeted by fresh produce and fresh flowers. It smells good. It feels curated. It feels very purposeful. It’s a more comfortable experience. We’re very excited to have them join the shopping center.”

Representatives of The Fresh Market’s corporate headquarters did not respond to a request for comment.