Green Zebra, the chain of health-focused grocery and convenience stores, plans to shutter all three Portland locations at the end of March.
The mini-grocery company, the brainchild of former New Seasons Market chief executive Lisa Sedlar, cited pandemic-related supply chain woes, staffing and other economic issues as reasons to wind down.
In a statement announcing the closures, Sedlar said Green Zebra recorded “(nine) straight quarters of increases to our cost of goods, packaging, fuel, insurance, taxes, freight charges and well, pretty much everything.”
“Combine that with supply chain and staffing shortages and razor thin grocery margins, we just couldn’t overcome all the obstacles,” she said. “We have been holding on by a thread since the pandemic started and have been in austerity mode since then.”
Sedlar, a former New Seasons executive, founded Green Zebra in 2013. Her goal was to replicate the upscale grocery experience in smaller stores across urban neighborhoods.
The company’s model has been to put stores in locations that are underserved by grocery stores. The company operates a store near Portland State University, in North Portland’s Kenton neighborhood and on Southeast Division Street.
Green Zebra’s announcement comes amid soaring grocery prices, higher interest rates and concerns about a possible recession later this year.
Kevin Coupe, author of food-industry newsletter Morning News Beat and adjunct faculty member at Portland State University’s center for retail leadership, said Green Zebra is not the only business feeling the pain at this particular economic juncture.
“All businesses are facing difficult decisions right now, in a tough economic environment like this,” Coupe said. “Even if your sales are up, your profits are done because of inflation. And most players are trying to keep their prices as low as they can keep them.”
Green Zebra’s departure also follows on the heels of Walmart’s announcement to shut down its only two stores in Portland, citing underperforming sales.
Coupe said small businesses are especially bearing the brunt of supply-chain pressures and rising prices, with many having to tap cash reserves or take on debt just to compete with bigger rivals. Unlike big-box retailers and supermarket giants, smaller grocers don’t have the heft and scale to successfully navigate the twin threats of supply-chain disruptions and rising prices.
“Interest rates are up and it’s harder for companies, particularly small retail businesses, to find investment money,” Coupe said, adding that the current economic conditions are further exacerbating the existing power imbalance between small and big firms.
Sedlar said Green Zebra will pay all of its staff members in full, including any accrued vacation hours, as the company prepares to close down for good. In a statement, she said she “highly recommends” her current team members to other local grocery stores looking to hire workers.
–Kristine de Leon; kdeleon@oregonian.com
