Jewel-Osco tightens grip on Lake Zurich with 2 stores in same area

Two stores will be open around Rand Road

  • Thomas Poynton

    Thomas Poynton

Posted3/8/2014 8:00 AM

Jewel-Osco is about to gain quite a foothold in Lake Zurich.

After moving into a vacant Dominick's Finer Foods store on Rand Road later this year, Jewel-Osco also intends to continue operating in its current location about a half-mile east.


Jewel-Osco spokeswoman Allison Sperling confirmed Friday the older store at Route 22 and Ela Road will remain in business when the chain opens where Dominick's previously operated. The Dominick's is in a mall at the northwest corner of Rand Road and Route 22.

Lake Zurich Mayor Thomas Poynton expressed satisfaction with Jewel-Osco's decision to take over the Dominick's space. He said no financial inducements were given to Jewel-Osco or the owner of Northlake Commons to fill the Dominick's space.

"From where I sit, this is a great outcome," Poynton said. "We had a potentially long-term empty space that is now filled."

Dominick's closed 72 stores in the Chicago area late last year, but some have been snapped up by other chains.

Mariano's Fresh Market, Jewel-Osco, Joe Caputo & Sons and Whole Foods are among the grocers that have committed to remodeling and reopening in the former Dominick's spaces.

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While Jewel-Osco's plan to run two stores within a half-mile of each other in Lake Zurich is uncommon, there are at least three reasons it makes sense for parent company New Albertson's Inc., according to a supermarket analyst.

Jon Hauptman, a partner with Willard Bishop Ltd. in Barrington, said Rand Road may be a barrier to shoppers who don't want to go east across the busy thoroughfare to the existing Jewel-Osco.

He said Jewel-Osco can solidify its presence for western Lake Zurich residents because they won't need to cross Rand to shop that store in Northlake Commons.

"It opens up different neighborhoods to the store," Hauptman said.

Jewel-Osco also is keeping a competitor away by moving into the Dominick's, Hauptman said. He added Jewel-Osco may be locked into a lease at the older building at Ela and Route 22, possibly making it more financially prudent to run two stores close to each other.


Poynton said if Jewel-Osco decided to close the store in Lake Zurich Shopping Center, it may be easier to fill because it is smaller than the 77,303-square-foot space Dominick's vacated.

Last month, Mariano's continued its suburban expansion by opening at Route 22 and Quentin Road in east Lake Zurich.

Twitter: @DHBobSusnjara

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