Wheatsville Co-op to close Guadalupe store amid Project Connect light rail plans

AUSTIN (KXAN) -- Wheatsville Food Co-op's General Manager Bill Bickford confirmed the grocer is planning to move from its Guadalupe flagship location amid Project Connect's planned light rail route.

Bickford announced the impending move in a special edition Wheatsville newsletter published online. In an interview with KXAN Thursday, Bickford stressed Wheatsville leaders support expanded public transit services in Austin, referring to the impact to their Guadalupe storefront as part of the "unintended consequences" that can come with growth.

"We know that many of our shoppers rely on public transportation to get to and from our stores, and we also know that transportation can be a barrier for folks accessing healthy foods, including many folks in our community," he said. "Ultimately, Wheatsville does support Project Connect's vision for a more connected Austin. However, as you know, unfortunately there are some unintended consequences for us as a business and our ability to operate at that location."

Wheatsville has operated out of its Guadalupe flagship site since 1981, five years after the business originally opened at 29th Street and North Lamar Boulevard in 1976. Bickford confirmed there will be no impacts to the South Lamar Wheatsville location.

In Wheatsville's newsletter, business heads outlined three possible scenarios for future operations: relocate to a similar north central Austin location, focus all efforts on a singular location at South Lamar or shift its business model to "significantly smaller stores," with more locations featuring smaller storefronts akin to what the Guadalupe shop looked like prior to 2009 renovations.

"The Austin grocery market has seen a proliferation of successful small-format stores over the past several years, with many examples serving neighborhoods throughout Austin," the newsletter read in part. "These stores compete in a different segment of the market from the major grocery competitors such as HEB, Whole Foods, and Sprouts."

On Thursday, Bickford said the third option -- a push toward additional, smaller-scale stores -- is the path Wheatsville is pursuing.

"We're starting this conversation early with our owners in order to gain engaged community support, especially amongst club membership, and in order to ensure a smooth transition to that process," he said.

Right now, Wheatsville's current lease on its Guadalupe location runs through summer 2026. Bickford said that, based on existing Project Connect route plans, the business will not renew its lease there for a variety of reasons beyond temporary construction impacts.

Under current plans, drivers and pedestrians won't be able to cross near Wheatsville to access the business, as the nearest light rail crossing points will be at 29th and 34th streets. Post-construction, drivers won't be able to turn into the store from the southbound lane, and the existing sidewalk near the storefront will be gone.

"We know from past market studies that a large majority of our sales come from the neighborhoods north of the store, so losing convenient access for southbound traffic will almost certainly result in a major sales decline," the newsletter read.

Bickford also spelled out concerns in the newsletter related to delivery truck access to the site. Due to the placement of the light rail in the center of the road, the shop's primary suppliers -- 18-wheeler trucks -- won't be able to stop by the store.

However, the newsletter also noted challenges with the Guadalupe location beyond Project Connect's influence. Bickford acknowledged sales at the Guadalupe store have dropped for more than a decade, with 2013 annual sales listed at $18.6 million and 2023 annual sales reported at $9.1 million.

Despite the challenges Wheatsville is facing, Bickford said it's been gratifying and fulfilling to be a part of the Austin community for nearly half a century. He joined the business in 1999; he said seeing the co-op grow over time and expand to its secondary location at South Lamar has been one of the "crowning achievements" of his career.

"In more recent years, you know, there's been much more competition in the natural and organic grocery market, and so that has been challenging," he said. "And so that is the reason we're seeking to adjust our business model in a way that we think can be sustainable and help us thrive into the future, and help us serve even more Austinites than we do today."