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Good morning. Tis the season for pop-up fireworks stands in Central Pennsylvania. If you see one this weekend -- and you're into backyard fireworks displays --  you might want to pull over. Like pretty much everything else in the world, fireworks are in short supply. And, because it's 2021, costs are rising.
 
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Trader Joe's to open first store in region



After months of speculation, it's now confirmed. Trader Joe's is setting up shop on the West Shore, marking the California-based grocery chain's first foray into Central Pennsylvania.
  • Lemoyne-based Campbell Commercial Real Estate and the Lower Allen Township Development Authority yesterday announced Trader Joe's is moving into Lower Allen Commons, a development rising near Routes 15 and 581 on the 14-acre site of a demolished Bon-Ton store in Lower Allen Township.
  • The grocery store will take up 12,500 square feet and is expected to open in early 2022, according to Campbell Commercial. Construction is already under way.

Why all the excitement: The Trader Joe's chain tends to ignite enthusiasm that far exceeds its industry-defying smaller footprints. Fans lobby the company to come to their town.
  • While most grocery chains are going bigger, Trader Joe's has stuck with a 10,000- to 15,000-square-foot model and a relatively limited selection of products, many of which are private-labeled. 
  • The first Trader Joe's opened in 1967 in Pasadena, California. In 1979, the growing chain was sold to a German entrepreneur named Theo Albrecht, who was co-founder of the discount grocery chain Aldi. 
  • Trader Joe's now operates about 500 stores in 42 states, including several in the Philadelphia area, one in State College and others in the Baltimore region. Its cousin Aldi has more than 2,000 stores in 36 states.

The background: The Lower Allen authority purchased the former Bon-Ton site for roughly $7.6 million in 2019 after the department-store chain folded.
  • The authority's goal at the time was to find the right developer for the property, which is in a prominent location.
  • Existing tenants at Lower Allen Commons include a trio of restaurants: Bonefish Grill, Texas Roadhouse and Burger King.

What's next: In addition to Trader Joe's, Lower Allen Commons will house a 124-room hotel being developed by York County-based Springwood Hospitality. The Spring Hill Suites by Marriott is slated to open next year.
  • Sports Clips, a men's hair-cutting chain, is leasing one of three spaces next to Trader Joe's, according to Campbell Commercial.
  • The real estate firm said it is negotiating with The Good Feet Store to lease a second space.


Quick takes



WHAT WAS SPIKED: Legislative provisions that would expand sales of canned cocktails to grocery stores, convenience stores and other retail outlets in Pennsylvania. A state House committee struck the provisions yesterday from a bill that would allow bars and restaurants to continue selling cocktails to go on a permanent basis. The practice helped the industry survive the Covid-19 pandemic but was cut off last week by state liquor regulators, hence the need for legislative action. The bill also would make it easier for bars and restaurants to expand their outdoor seating, among other provisions.
  • The language on canned cocktails was added to the bill last week in the state Senate and drew threats of a veto from Gov. Tom Wolf. He said he wanted a clean version of the legislation.
  • The bill now heads back to the Senate after passing out of the House on a vote of 170 to 31.
  • The canned-cocktail provisions are likely to resurface eventually, given that the spirits industry has been seeking to expand sales outlets for the products. They are currently available in Pennsylvania only through state liquor stores.
 


WHAT SOLD: The Lancaster Public Library building at 125 N. Duke St. in the city. The library's trustees this week approved an agreement to sell the roughly 40,000-square-foot property to a group of undisclosed local investors for an undisclosed amount. The sale comes as the library plans a move to new digs under construction at Ewell Plaza on North Queen Street.
  • The sale, managed by Lancaster-based brokerage PPM Real Estate, is expected to close within the next two years, according to a press release from the library.
  • The sale proceeds, along with a future capital campaign, will support the library's move to Ewell Plaza. A portion may also go into the library's endowment, which stood at about $3.8 million at the end of 2019, according to tax records on GuideStar.

What's next: Until it moves, the library will continue to own and occupy the facility. The building's next user is expected to be a longtime neighbor, Saint James Episcopal Church, which said in a press release that it is exploring options for the property.
  • Because it involves a nonprofit, the sale requires approval of Pennsylvania's attorney general and Orphans' Court.
 


WHAT NARROWED: Losses for Rite Aid. The Cumberland County-based pharmacy chain had a net loss of nearly $13.1 million for the quarter ending May 29, down from a loss of $63.5 million for the same period a year ago. Sales were up slightly, rising to nearly $6.2 billion despite a decline for the company's pharmacy services business Elixir, which lost a large customer, according to Rite Aid. 
  • The Covid-19 pandemic continues to affect Rite Aid. While the chain is vaccinating and testing millions of people for Covid, it is selling less medication for coughs, colds and flu.
  • Before Covid, the company filled about 200,000 Tamiflu prescriptions. Last year the figure was 200, Rite Aid CEO Heyward Donigan said in a conference call with stock analysts, according to the transcript.
  • Cold and flu season could come back with a vengeance this fall as children return to in-person schooling without masks, she said.

What's next: Donigan said she is focused on turning around Elixir, which she has been overseeing on a day-to-day basis. The division focuses on serving regional health systems and mid-market employers.
  • "While I’m highly encouraged by our talented team and the clear opportunity for growth we have at Elixir over the long-term, we still have much work to do in order to best position ourselves for profitable growth," she said on the conference call.
  • Rite Aid has about 2,500 stores in 17 states.
 


WHAT OPENED: Two Harrisburg-area outpatient centers for Penn State Health. Based in Dauphin County, the regional health system cut the ribbon this week for Penn State Health Medical Group - Blue Ridge and Penn State Health Diagnostic Center - Union Deposit.
  • The Blue Ridge center is in a 7,500-square-foot building at 1540 Alexandra Lane, near Blue Ridge Village off Linglestown Road in Lower Paxton Township. It offers primary care, internal medicine, women's health and pulmonary services.
  • The Union Deposit center is in an 11,000-square-foot building at 4520 Union Deposit Road, also in Lower Paxton. It offers diagnostic imaging services with a focus on breast care.

Why is this happening: Penn State Health has been ramping up its community services over the last few years, aided by a $1 billion partnership forged in 2017 with Pittsburgh-based health insurer Highmark.
  • The health system recently finished construction on a new hospital in Cumberland, Penn State Health Hampden Medical Center, which is set to open this fall.
  • The system also is building a hospital in Lancaster County.

 
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Compiled and written by Joel Berg
 
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