Farmer Jack still seeking buyers

Six months after the Farmer Jack grocery went up for sale, 33 of the 66 stores remain without buyers, and some of the purchased ones aren't open yet. Some cities are eager to see a sale because a reopened store will help their tax base. Shopping center owners would also benefit from the increased foot traffic.

"They are taking the biggest hit," said Dave Long, a senior associate with the Southfield-based CB Richard Ellis commercial real estate firm. "That grocery traffic - about 25,000 people a week - is not there. But some of the locations will go for nontraditional and non-retail use. I've seen grocery stores converted to call centers, libraries, community activity centers," he added.

Kroger, which bought 20 stores, has opened all but one which the grocer has said it will take longer to convert that store because of extensive renovations. The bulk of sales for US grocers take place the week of Thanksgiving (November) and around Christmas. The next busy sales time is around Easter. "From the grocery retailer's perspective, if they cannot open correctly and get bugs out in advance of a major season, it's better to wait," Long explains. "It's better to ease into it rather than rush into busy time."

Grocery store researcher David J. Livingston said he believes deals are still being negotiated. It takes about US$10 million to open a store. The potential for a sale, however, depends on whether the buyer thinks he or she will get a good return on the investment.