Grocery store owner says West Philadelphia ShopRite will close due to city’s soda tax

The owner of a ShopRite grocery store in West Philadelphia announced recently that the store will close in March, blaming Philadelphia’s tax on soda and other sweetened beverages for the decrease in sales that made the store unprofitable.

“It is disappointing to see the Shoprite store along Haverford Avenue closing its doors,” State Rep. Morgan Cephas (D-Philadelphia) said. “Not only is it a hit to the local economy and a loss of jobs in the immediate area, it will add to the already overwhelming amount of food deserts in our Middle Neighborhoods.

Philadelphia’s 1.5-cent-per-ounce beverage tax went into effect two years ago. The tax funds pre-K, community schools and improvements to parks, recreation centers, and libraries. Philadelphia was the first major city to enact a tax on soda.

Jeff Brown, who owns the store and several other grocery stores in the city, said that his store has seen a decrease in sales since the beverage tax went into effect. In 2016, the store had $30.5 million in annual sales, while in 2018, sales were $23.4 million. Brown said that his other stores have also seen declining sales, but that losses were greatest at the West Philadelphia ShopRite because it is near the city’s border. This, Brown suggested, encouraged shoppers to travel outside the city limits to do their grocery shopping.

“With a new legislative session underway in Harrisburg, the general assembly must work together to provide adequate funding for our schools and infrastructure needs across the commonwealth, no matter the zip code,” Cephas said. “By fairly distributing sufficient appropriations for education and recreation centers, municipalities and cities, including Philadelphia, would not need to create alternative means of funding, such as a soda tax, which could ultimately have a devastating impact on businesses and our neighborhoods.”