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Irvine-based Wholesome Choice brings its international focus to Anaheim Hills and eyes a South County location.
By SARAH TULLY June 12, 2009 - 12:00 AM
Anaheim Hills Mike Mokhtare didn't want to let the wilting economy stop plans to expand his international market business.
So, even with dipping sales, Mokhtare launched a second, larger Wholesome Choice market in Anaheim Hills and expects to open a third site in South County within about six months.
The Irvine market opened five years ago with the concept of providing merchandise that reflects the diverse community, offering Persian, Indian, Asian and Mexican products as well as an expansive international food court and hot bread counter. Mokhtare always intended to open new stores, but the March timing of the second launch at a former Albertsons ended up coinciding with the recession.
“Since we had it planned before this situation of the economy, we are still trying to implement our original plans. … We are hoping the economy turns around and gets better,” Mokhtare said. “At this point, it's a little bit tough.”
Store sales overall are down about 5 to 8 percent compared with a year ago, with patrons buying fewer expensive items, pastries and pricey meats.
But the Anaheim Hills store's sales are on par with projections. And the popularity of the Irvine store is starting to carry over to the Anaheim Hills location, where some residents are just learning about the diverse offerings, low produce prices and vast meat selection.
International selections
On a recent Monday, Mark and June Criswell of Yorba Linda had a hard time figuring out what to eat for lunch when they stopped by for the first time at their friends' suggestion. The options were numerous: An international food counter includes hamburgers, chicken enchiladas, pot roast and lasagna on the same menu. Around the corner, Mediterranean, Indian, Chinese and Thai dishes fill pots and trays.
The Criswells sampled Mediterranean meats, hummus, falafel and grape leaves before ordering a lamb kabab sandwich. They planned to circle around to another section to buy something else to share.
“We normally shop at Vons,” Mark Criswell said. “We'll definitely come back here.”
The store also draws immigrants wanting tastes from their countries.
Originally from Egypt, Yousreya Khalil and Shahira El Masry visit the store almost every day. On a recent Wednesday, the friends tasted hot sangak bread – a Persian, sesame-seed flat bread spread a few feet long and baked on a rotating, flaming oven.
“It's much easier than cooking,” said Yousreya Khalil of Anaheim Hills, who also ordered a shawarma sandwich. “It's as close to home as possible.”
Market competition
Retail consultant George Whalin of Carlsbad-based Retail Management Consultants said while traditional grocery stores are seeing slower sales, specialized markets nationally are thriving, even in tough times.
“We've never had enough to serve that population, especially now that it's growing,” Whalin said.
Owner Mokhtare, who grew up in Iran, said the hot foods and fresh bread set Wholesome Choice apart from other markets. It's also something that has worked well at other stores, particularly Whole Foods, Whalin said.
Because of the unique approach, Mokhtare said the store doesn't have a direct competitor, except small ethnic markets and regular supermarkets.
Unlike other businesses, Wholesome Choice has products from different countries mixed together on shelves, along with traditional U.S. brands.
The store also carries kosher foods and halal meats, specially prepared for the Muslim population.
Stocking the stores
For future stores, Mokhtare is looking at areas with diverse populations, though he welcomes everyone.
Both locations carry the same products.
But for the Anaheim Hills store, Mokhtare has more Arabic, Mexican, Indian and Turkish items to reflect the population on the northern edge of Orange County and beyond. The Irvine store stocks more Persian and Middle Eastern foods.
The Anaheim Hills store is about half again as large and carries 20 to 30 percent more goods.
We believe the economy will be better in the near future and people need groceries and foods,” Mokhtare said.