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Six Sav A Lot Store Subsidies Approved For $13.5M, But 14 Months Later, None Are Open

After months of blown deadlines and broken promises to renovate and reopen six low-cost grocery stores in underserved communities, the operator of Save A Lot stores in Chicago promised a top city official in January the company would do better.

"We took your comments about a 'hard reset' to heart," Yellow Banana Chief Executive Joe Canfield wrote to Ciere Boatright, Chicago's top planning and development official, in a Jan. 31 email.

Five months later, Yellow Banana continues to fall short of its own goals.

The company was given 24 months under a contract with the city that approved $13.5 million in subsidies to rehab six stores. More than halfway in, all those stores are closed for construction and none have been renovated. The company now has 10 months left to finish the job.

It's been a tumultuous year for Yellow Banana. The company has been plagued by financial and legal troubles and dozens of timeline changes. Meanwhile, residents in neighborhoods with no grocery stores wonder when it will make good on its promises.

More than $26 million in funding — including tax increment financing, loans and federal grants — was approved for the project. Tax increment financing funds aren't provided until a store is completed. It is unclear how much of the nearly $7 million in federal funds has been disbursed.

Outside of the initial contract, an additional $4.8 million in city funds has been approved for the construction of two new stores.

The only Save A Lot store open in Chicago is in Englewood. It was renovated and is not included in the six-store agreement with the city.

The six stores' opening dates have been pushed back repeatedly for more than a year.

Swooping in to save Save A Lot

Nearly two years ago, Yellow Banana made headlines as the company that swooped in to reopen Gresham's former Save A Lot after a neighborhood Aldi abruptly closed. By April 2023, the company was officially contracted to renovate the Save A Lot stores.

After a "hard reset" meeting with city Department of Planning and Development Commissioner Boatright, Canfield told her "perceived communication issues" had been remedied.

Next, he assured Ald. Ronnie Mosley (21st) the Morgan Park store was still on the most recently set schedule, communications obtained by the Sun-Times show.

The target date for the grand reopening was May 22.

But last week, the store was gated off, and there was no sign of activity inside or outside.

"They're still going through construction when I talked to them last week," Mosley told the Sun-Times. "Pavement of the lot and landscaping got delayed because of the rain."

"I don't think they understood the entire process and that they would need more permits," he said.

The opening for the Morgan Park store is now scheduled for early July.

Gresham and West Garfield Park were top priorities because of the lack of food options in those communities, Canfield has said.

Initial plans were to do "one store at a time to minimize negative community impacts and to not overly burden Yellow Banana's cash flow position," a Yellow Banana associate told city employees in an October email obtained by the Sun-Times.

In Gresham, residents have waited for a grocery store at 7908 S. Halsted St. Since July 2022.

Most recently, Ald. David Moore said the store would be open by Thanksgiving 2023 after a flooring issue. The holiday came and went without the shop opening, and Yellow Banana promised that location, and another in West Garfield Park, would open by April.

Amid those delays, the company was sued by its Ohio produce distributor, sold all of its Florida stores and closed two Illinois stores .

Yellow Banana did not respond to repeated requests for comment from the Sun-Times, despite an earlier promise to provide updated timelines.

Moore said the Gresham store opening has now been pushed to the end of August — more than a year after Canfield told a hopeful crowd at a Gresham community meeting the store would be open in July 2023.

Financial issues continued, and Yellow Banana had to take out another loan, Moore said.

"It was frustrating when we went from Thanksgiving to opening in the spring and then we ran into not only flooring problems, but also some other structural problems," he said. "That's normal, but I wasn't expecting that given … the money they had and the fact that the [building] was already a [former] Save A Lot store. But I'd rather have a good product then have nothing at all."

The Save A Lot at 420 S. Pulaski Road was closed last fall for renovation. It has not reopened.

Owen Ziliak/Sun-Times/Owen Ziliak/Sun-Times

Waiting in West Garfield Park

In West Garfield Park, residents are still living without a full-service grocery store.

Angela Taylor, wellness coordinator for the Garfield Park Community Council, sits in on meetings with Yellow Banana. She was told the store at 420 S. Pulaski Road would open about mid-June.

Taylor was sympathetic to installations and sign delays for the West Garfield Park store but was unaware of all the other stores that remained closed.

"That doesn't really make sense to me because these are renovations. These aren't new stores opening," she said.

Talei Thompson, the Westside Block Club Association founder who has family living next to the store, said his relatives hadn't seen any construction or activity in a few weeks.

Thompson and Taylor weren't thrilled about Save A Lot remaining in the community, and Taylor has been pushing for a locally owned grocery store.

"It's almost summer again, and we do not have a grocery store for my 96-year-old grandmother and her daughters to walk outside their back door to purchase produce and groceries," Thompson said.

"If we haven't had a store ready this year, many of us in the community would rather just wait it out with new construction of a new store at the Save A Lot location, opposed to just waiting and waiting," he added.

There are plans in the works with the city for a different grocery store in the neighborhood, Taylor said.

While she still hopes the stores will open, she said there's an overall theme of a lack of planning with Yellow Banana.

Last year, she said, Yellow Banana discussed taking older residents from a neighborhood living center and driving them to a pop-up grocery store Taylor helped run while the Save A Lot was being renovated.

But they didn't make the arrangements, Taylor said.

"We were sitting in the grocery store one day and a van pulled up and said, 'Where are the seniors?' And I'm like, 'What seniors?'" Taylor said. "They had absolutely no plan."

She directed the Yellow Banana representative to the senior center and introduced him to the resident coordinator.

The company never ended up bringing any of the older residents to the grocery store.

"The timing was off," she said. "You have to plan for something like that."

A Save A Lot store at 4439 W. 63rd St. In West Lawn was still closed for renovations on Tuesday.

Jim Vondruska/For the Sun-Times

An Undetermined Future For The East Side's Save-A-Lot

The store owner says there isn't a definite closing date. He says conversations with the city are going well and that they don't want to close the store.

BUFFALO, N.Y. — Closing of the Save-a-Lot in the Broadway Market may not be a done deal.

Store owner Ronald Horrigan said he is trying to keep the store open. He told 2 On Your Side that conversations with the market's manager and the city have been going well, but financial help is needed to keep the store going. 

"The talk went really well. There are some things we're trying to work out and see if we can manage to get things done and keep the store open," Horrigan said. "I'm going to need some help money-wise because I keep putting my own money into the store to keep it open."

Horrigan says he loves his customers, but a few customers make it bad for everyone, and he couldn't keep up with the thefts. 

Handwritten signs announced the news of the closing, and the almost bare shelves show an end is near. Councilman Mitch Nowakowski was adamant allegations of looting are not the cause, but according to Manager Destiny Bowden and the owner, it is. 

"They come every which way. The cops do not come. You call them. They do not come. They'll be here half an hour or an hour later, and the person made it out of the store by now," Bowden said. 

Horrigan has hired security in the past but said that didn't help. 

"A lot of the time, they get in cahoots with the help, and then you got the help and the security stealing, or they have friends come into the store, and they let them steal," Horrigan said.

Horrigan said that since the pandemic, stealing has gotten worse. 

"It's like they have a license to steal. After they steal they're like, 'The owner got insurance, that pays for this.' It doesn't pay for theft. That comes out of my pocket," Horrigan said. 

Bowden says it's men, women, young, and old who are shoplifting, and that it happens five times a day, often ending in a fistfight. 

If the store closes, that leaves Tops and Aldi in the area. In March, some Dollar General stores in areas known as "food deserts" started selling produce. U.S. Sen. Kirsten Gillibrand says they are eligible to expand, but something else may come our way.

"We've been talking to Buffalo Go-Green, and they are thinking about opening an East Side grocery store here, and we're trying to convince them to do it now," Gillibrand said. 

6 Save A Lot Stores Were Approved For $13.5M In City Subsidies, But 14 Months Later None Have Opened