In the months since it has opened, Raley’s organic-focused concept store in downtown Sacramento has settled into the neighborhood. Its closeness to office buildings makes it a convenient stop for customers on their way to or from work, and there are very few competitors in the area. Engage3 visited the small-format store to take a closer look at its selection, and what is contributing to its popularity.
The parking lot is spacious, and allows for customers to park their cars without worry (there’s a 90 minute time limit, but Sacramento is notoriously difficult to park in to begin with). In front of the store is an ample amount of bike parking, as well as lockboxes for cautious bikers. There were a few electric-assisted bicycles to rent, the kind that are popular in downtown Sacramento and other cities. Market 5-ONE-5 is reasonable biking distance for customers working downtown or at the state Capitol.
I walked up to the entrance, noting the various signs boasting local coffee roasters and breweries. Next to a small garden section was a sign that read: “Beer tasting this Friday at 5:00 pm. Brews by: Fort Point Beer Co.”
Inside the Store
Once inside, I noted the size of the store immediately. Though it resembled a Whole Foods or a local food co-operative, the store was scaled down to fit a wide selection of products.
As I walked through the aisles, I looked up to find that there were no signs indicating the products in each aisle. Instead, there were a great number of employees roaming in the miniature grocery store. When I asked a floor employee where I could find a certain product, he led me directly over to the aisle and gave a few short product recommendations. It seemed that Market 5-ONE-5 was focused on knowledgeable and friendly employees to enhance the shopping experience, an approach that was unique to a small-format store with an organic-only selection.
Still, there something missing while I browsed through the aisles, and it took me a while to think of the answer. I kept seeing organic cookies and soups and soaps, but I found that there were no private label products. With Raley’s private label brand being so easy to identify, it came as a shock that they would pass on the opportunity to advertise it.
This may be the result of having very little competition nearby, as well as a slight boost to margins from both convenience pricing and organic-only products. Whatever the reason, it seemed that Raley’s was relying primarily on word-of-mouth marketing and customer loyalty to succeed with Market 5-ONE-5.
I became more convinced of this when I made my way to the food bar section of the store. In addition to a salad bar and hot food bar, the store offered fresh deli meals like soups and sandwiches. According to Yelp reviews of the store, this section was the crowd favorite, and several reviewers preferred it over the Whole Foods hot bar. Next to this was also a small coffee counter proudly displaying signs for a local coffee roaster.
A bit of background: since the city officially changed its title from the “City of Trees” to the “Farm-to-Fork Capital,” Sacramento and its residents have taken great pride in promoting local businesses and the food supply chain. When giving the option, shoppers who frequent grocery stores like Market 5-ONE-5 will typically buy local goods. The product selection in the store matched this sentiment.
After ordering my coffee (which was from a place called Temple Coffee, several signs told me) I sat down in the cafe area of the store to observe for a short while. Market 5-ONE-5 is currently partnered with Instacart, and a small sign near the food bar gave instructions for customers wanting their groceries delivered in the future. The store location makes it easy for Instacart to pick up groceries and deliver them to office buildings throughout downtown, from what I could tell.
I got up and explored more of the store, stopping by the meat department and refrigerated sections. Though there was a wide selection of fresh meat and seafood lining back end of the store, and it was all ethically sourced (with the price tag to match). The refrigerated sectioned fared better in terms of price, fitting into the range of a typical organic grocer or food co-operative.
The wine aisle was reasonably large but not overwhelming, and featured many bottles in the $10 to $20 range that I had never seen before coming to this store. About one quarter of the wine came from local wineries in the Sacramento and Lodi, California area.
As I made my way to the checkout counter, I also had a closer look at the fresh produce section. Consistent with store policy, every item was organic. The selection was limited to what was currently in-season with some exceptions for popular fruits and vegetables. Though the area was small, the produce displays were meticulously arranged to make up for it.
I finally checked out at a counter that looked like it belonged in a clothing store. There were no conveyor belts, magazines, or candy displays–just a cashier waiting to scan and bag your purchases. Though the experience was odd at first, I found that the transaction was more personal. I had no fear of holding up the next person in line or taking too long to finish my purchase.
I left Market 5-ONE-5 impressed by the range of products they offered in such a compact space. The lack of private labels items also was a significant surprise, and Raley’s seems to be fostering store loyalty rather than chain loyalty with this location. There were no in-store or online markers that suggested this was a Raley’s venture, focusing instead on the product selection and appealing to the downtown Sacramento crowd.
The store’s slogan is “Organics – Nutrition – Education,” fitting with the larger goal of providing ethical and sustainable goods to downtown residents. Based on the signage throughout, Market 5-ONE-5 aims to be a community space promoting local businesses. This idea was cemented in my mind when I walked out and saw a delivery van from the featured coffee roaster.
Even after nine months, Market 5-ONE-5 has a loyal customer base in Sacramento and continues to grow. To read about other stores in our Engage3 Visits series, you can start with our review of Falling Prices–where prices drop from $6 to $0.25 over the course of a week.