Atlanta municipal grocery store hopes to succeed where others haven't

ATLANTA - Atlanta is investing millions of dollars into a new project aimed at bringing grocery stores to underserved neighborhoods, starting with a municipal store downtown that city leaders hope will succeed where others have failed.

City-supported grocery store

What we know:

The city has partnered with Azalea Market to open a store at Peachtree and Edgewood. The initiative is part of a public-private partnership in which Atlanta is providing $8 million in grants and loans to support the downtown store and another planned location on Campbellton Road.

Azela Market takes business approach

What they're saying:

John Ross, an advisor on the project, said the approach is business-driven.

"We started with a business model and worked backward," Ross said. "What does it take for the store to hit that critical 3-year mark?"

Azalea Market CEO Paul Nair said the project has to balance mission and sustainability.

"A dogooder thing is good. I’m not saying there’s anything wrong with it, but if you want to sustain it, you have to make sure you balance," Nair said.

Customers are already checking it out. Georgia State University employee Shavone Williams stopped in for the first time.

"This is a good place to stop because it has everything," Williams said. "Produce, they have ready-made sandwiches."

Azalea Market is aiming to be price competitive.

"We’re trying to be lower than Kroger and Publix," Nair said.

Around the country, other cities have tried to solve food deserts by directly owning grocery stores or subsidizing them, often with mixed results. Some stores have shut down despite millions in taxpayer support.

Backers of the Atlanta project say the business-first model, combined with city support, could help the stores overcome early challenges and set an example nationwide.

"If we can prove that this can work here, and we can do it over on Campbellton Road, the next store, maybe we can do it all across America," Nair said.