Atlantic City is finally getting a full-service grocery store after roughly two decades without one.
A small store at Renaissance Plaza, a strip shopping center at 1400 Atlantic Ave., will be leased by a New Jersey state agency to a company that is slated to transform it. The existing Sav A Lot, a discount grocer with limited offerings, will get a new operator and be expanded and revamped.
The move by the Casino Reinvestment Development Authority, or CRDA, is part of a stepped-up effort by some cities and governments to spur the opening of grocery stores, places where residents can buy healthy produce and other goods, in neighborhoods known as food deserts.
The issue that Atlantic City faces attracting a supermarket mirrors what's happening in other parts of the nation, certain rural and urban areas where grocery chains don't think it's profitable for them to operate. The dilemma has prompted Zohran Mamdani, the Democratic front-runner in the New York City mayoral race, to vow to open five city-owned grocery stores if he's elected. It's a controversial proposal, with critics and supporters.
In Atlantic City, the CRDA will own the newly revamped grocery store, which is getting $20 million from the state to get off the ground. Other cities, including Atlanta, are also opening public grocery stores.
Bringing in a new operator
The CRDA on Tuesday unveiled its plan for Renaissance Plaza, the result of a collaboration that involved that agency, New Jersey Gov. Phil Murphy, state Sen. Vince Polistina, the New Jersey Economic Development Authority and Atlantic City.
The CRDA, tasked with promoting redevelopment in Atlantic City, said it has authorized its executive director, Eric Scheffler, to negotiate and execute a long-term lease with Moran Foods "to operate and enhance the grocery store at Renaissance Plaza."
Save A Lot's footprint will be expanded from 18,786 to 28,443 square feet, roughly 50% larger, a CRDA spokesman told CoStar News in an email. The estimated completion date for the expansion is December 2026. The store will remain open during the renovation process.
For more than 20 years now Atlantic City, a seaside gambling mecca and tourist attraction, has been without a full-fledged grocery store for its residents. They have been forced to drive to the mainland or pay for public transportation in order to have access to a full array of groceries, or shop in expensive local shops with limited choices. All this in a city where roughly one-third of the population is at the poverty level, much higher than the state and national averages.
A full-service grocery store is loosely defined as a brick-and-mortar location that sells a wide variety of products and comprehensive customer services, including a full range of fresh and packaged foods such as produce, meat, dairy and frozen items.
At one point, it looked like the problem would be solved. In 2021 the CRDA struck a deal for the supermarket chain ShopRite to open a 40,000-square-foot store in the city. But it never came to fruition.
EDA funds $20 million
For the Sav A lot revamping, the EDA will be providing nearly $20 million for infrastructure improvements — including roof replacement, masonry restoration, enhanced security measures and streetscape beautification — at Renaissance Plaza.
The CRDA acquired Renaissance Plaza in September, according to the agency's spokesman. And the CRDA "will retain ownership of the property to ensure long-term community benefit and sustainable operations," according to the agency's statement.
The plan is part of a revitalization initiative that aims to transform the downtown shopping center into a commercial hub that will while provide food access for city residents, according to the agency.
"CRDA’s investment addresses longstanding community concerns about public safety and food access in Atlantic City's urban core," the agency said.
The project creates a long-term partnership "with a national wholesaler with nearly 50 years of expertise in the grocery industry to support the redevelopment of Renaissance Plaza," according to the CRDA.
Enhanced security, maintenance
“By investing in essential infrastructure and expanding access to fresh, affordable food, we’re strengthening the foundation of this community and ensuring that residents benefit directly from the city’s growth,” Murphy said in a statement.
The Sav A Lot revitalization "addresses Atlantic City's designation as a food desert by ensuring continued access to affordable groceries while bringing in an experienced grocery partner committed to expanded healthy food options," according to the CRDA.
"Moran Foods is completing a full renovation and expansion of the store, bringing additional services and an enhanced offering of fresh and healthy food options to residents," the agency said.
Enhanced lighting, security systems and ongoing maintenance protocols will be put in place at Renaissance Plaza, according to the CRDA. Environmental assessments and a comprehensive retail-space evaluation are currently underway, the agency said.
The Renaissance Plaza acquisition reflects the CRDA's mandate to address food security in Atlantic City, including support for mobile fresh food markets and strategic grocery development initiatives throughout the city, according to the agency.