PCC Community Markets is making a comeback to its former location at the base of a Seattle skyscraper after temporarily closing the store earlier this year due to underperformance and lack of profit. The grocer will open a smaller-format store in the Rainier Square building at 1320 4th Ave. PCC had previously operated a full-format store in the same location but decided to shut it down in January, citing a decrease in the number of office workers in the downtown core as a contributing factor to the store’s poor performance.
The closure of PCC’s downtown store was reflective of the overall trend in Seattle, where foot traffic in the downtown area remains significantly lower than pre-pandemic levels. Companies in various industries, including tech, have adopted hybrid work policies that allow employees to work from home, leading to a decrease in the number of workers commuting into the office. Despite this trend, PCC is contractually obligated to its long-term lease at the downtown location, so they are returning with a smaller store format that will feature hot and prepared foods, along with a limited selection of grocery and pantry items.
In addition to reopening the store, PCC will also relocate its corporate headquarters office to the same space in the Rainier Square building starting next year. This move is aimed at saving unnecessary rent expenses and aligning the company’s office space with their values as a co-op. The hope is that having a solid lunch option nearby will attract more workers back into the downtown core, although overall office space vacancy rates in downtown Seattle remain high, with expectations for an increase in the near future.
Amazon’s decision to withdraw from occupying 30 floors in the Rainier Square building in 2019 had a significant impact on the office space market in downtown Seattle. The tech giant has since mandated employees back to the office three days per week, which has led to increased foot traffic and businesses around its office locations in South Lake Union and the Denny Triangle. The City of Seattle also announced plans to increase the required number of days for in-office work for executive branch employees this fall, affecting more than 13,000 workers, which could potentially boost foot traffic in the downtown area.
PCC had originally announced plans for the downtown store in 2018 and faced pandemic-related delays before finally opening in 2022. The store is situated in an area of downtown that currently has limited grocery store options, making it a valuable addition to the neighborhood. Despite changes in consumer behavior and office work dynamics, PCC’s overall sales in the second quarter of this year exceeded expectations. The grocer currently operates 15 other stores in the Seattle region, offering a variety of organic, locally sourced products to its customers.
