Target Market West Oakland is a 2.5 square mile inner-city area with 26,000 residents who are predominantly African American and Latino. The annual trade area expenditure for groceries is over $58M, yet there are no supermarkets or full-service grocers in the area. Existing corner stores carry limited grocery merchandise and little fresh food.

Customer Problem West Oakland residents are under-served by 70% of their grocery demand, resulting in annual trade area expenditure leakages of over $40M. Residents, many of whom do not own a vehicle and rely on walking and public transportation, must often travel far to supermarkets or shop at nearby corner stores. These limited choices are contributing to poor health in the community, with 48% of residents considered to be obese or at an unhealthy weight. As a result, many residents are increasingly demanding better food choices, consumer education and a space for building community around shared interest for achieving greater health and wellbeing.

Business Model Building on the ten years of food enterprise experience of its sister organization, People’s Grocery, People’s Community Market (PCM) is creating a full-service neighborhood food store, health resource center and community hub that supports West Oakland families to attain healthier and more socially connected lives. PCM will use its understanding of the local area to develop and operate a retail concept that combines aspects of a limited assortment format and a full-service fresh foods format.

Limited Assortment Format: A smaller retail footprint will reduce PCM’s development costs and allow for an optimal retail location with high population density and accessibility by foot and public transportation. The limited assortment format will cater to the smaller, more frequent purchases that are characteristic of the neighborhood. The store will stock about 50% of the inventory carried by supermarkets and will focus on the products that lower-income shoppers tend to buy at a high rate of repetition. While PCM will carry all essential categories necessary for selection and convenience, the number of items per category will be reduced to create a more efficient and manageable assortment with higher inventory turn rates.

Fresh Foods Format: PCM’s offerings will emphasize quality fresh foods that are least available in the neighborhood: produce, meat, seafood, dairy, and bakery. As the trade area also lacks quality prepared foods and meals, the full-service café and grab-&-go section will be a key offering. The café will feature a unique menu targeted to the ethnic preferences of the community and will use fresh ingredients. The center-store grocery assortment will feature ethnic and local products, as well as bulk selections. The initial product mix will be 60-70% conventional to reflect the current primary demand in the neighborhood. Organic, natural and local product offerings will be increased over time as customer demand for them increases.

Pricing and Sourcing PCM will be positioned in the mid-price tier of the local market and will provide value in a range of customer outcomes such as quality, service and convenience. The store will use cost reducing strategies such as displaying produce on palettes and offering self-serve packaged meats and bakery sections. PCM will source directly from farmers and purchase surplus crops at discount. Other sourcing tactics will include procurement of odd lots, overruns and close out items.

Health Resource Center and Community Hub PCM will be “More Than a Grocery Store” to support customers in improving their health, building community and becoming more socially connected. PCM will partner with community and health organizations to offer education programs such as demonstrations and workshops, as well as health services such as diabetes screenings. The store will feature a community gathering space and venue for events and social activities, through the Front Porch courtyard, which will feature a patio, a stage, a kids play area, and a café service window for outdoor ordering.

Management • Brahm Ahmadi, CEO: Co-founded People’s Grocery and has 10 years of experience in organizational development, management and food enterprise. • David Guendelman, CFO: Brings years of experience as a CFO and has had a leading role in several early stage equity financings. • Anthony Gilmore, Operations: Has 33 years of experience as a supermarket executive at Safeway and Whole Foods. • Rene Cage, Deli: Has 35 years of experience in the restaurant, deli and food service industry such as Executive Sous Chef at Le Coq Au Vin. • Bill Fujimoto, Produce: Has 40 years of experience as a green grocer and produce buyer and was the store manager at Monterey Market for three decades. • Joni Wong, Grocery: Has 10 years of experience as a grocery buyer and manager including at Common Ground Food Co-op and Trader Joe’s.

Financing PCM is raising $3.6M for construction, capital expenditures, inventory and working capital. PCM has a unique opportunity for $2.4M in debt financing from the California Freshworks Fund. The company is raising $1.2M through a Direct Public Offering, a community investment vehicle through which residents of California can directly purchase preferred shares. PCM will provide investors with a 3% compounded interest rate and a seven-year payback period. The minimum investment is $5k for accredited investors and $1k for unaccredited investors. Additional information is available on our website.

www.peoplescommunutymarket.com • info@peoplescommunitymarket.com • (510) 995-7498 •

A small format neighborhood food store, health resource center & community hub that supports West Oakland families to attain healthier & more socially connected lives.