Former Kmart To Become A New Warehouse For Pete's Fresh Market (2024)

Officials agree to allow the grocery chain to use the former building as a warehouse, alongside building a grocery store in the plaza.

Posted Wed, Sep 30, 2020 at 12:03 pm CT|Updated Wed, Sep 30, 2020 at 4:45 pm CT

At Tuesday evening's Board of Trustees meeting, Village of Tinley Park trustees agreed with the grocery chain on a plan that will build a new Pete's Fresh Market from scratch— rather than moving forward with renovations of the old Kmart. The grocery chain wants the Kmart, which is in the same plaza, to become its newest distribution center. This decision was agreed upon the condition that the new grocery store would be completed by Sept. 1, 2022.

The amendment to the existing Park Place Planned Unit Development will be completed in two phases. Phase one of the plan will be to redevelop the former Kmart into the new warehouse and distribution center. Phase two will be to construct the new building and associated retail with the property.

Phase one will also include the renovation of the former Kmart store to include an additional 38,000 square feet of retail, maintaining the warehouse and distribution uses as an accessory to the grocery store, and will also involve the construction of five additional loading docks on the west side of the existing building, according to the village.

Phase two will have a 76,000-square-foot grocery store built and include 43,000 square feet of retail space, according to the grocery chain.

According to the chain, due to COVID-19, Pete’s Fresh Market has experienced increased demand for warehouse space at their existing warehouse facilities. Their warehouses currently contain dry goods and non-grocery related items like fixtures and spare equipment for their stores. Pete's proposed to use the vacant Kmart store to relocate items, making room for more grocery related items in their existing warehouse facilities.

The chain has also stated because of COVID-19 they have been presented with difficulties keeping necessity items in stock and that the warehouse will help with storage and distribution efforts.

Pete's committed to begin construction for Phase two of the project by Jun. 1, 2021. No physical construction is planned for the site or building of the former Kmart— except maintenance and safety requirements regarding occupancy of the warehouse— at this time, according to Pete's.

The second-generation owner of Pete's, Stephanie Dremonas, said it would cost the chain more money to renovate the Kmart into the grocery store, rather than build it from scratch.

"Being parallel with Harlem Avenue will be better for everybody," Dremonas said. "It will be better for customers to be able to get in and out, and for us to be visible."

Dremonas addressed concerns that Pete's might only construct a warehouse and not a grocery store, saying Pete's wants to be at the property as a retailer not just a warehouse and distribution center.

"We can put a warehouse anywhere and it'd be a lot less expensive and done quickly," Dremonas said. "I think the best thing about this property is that one, it doesn't work without a store and two, it doesn't work without a warehouse... I can put a warehouse somewhere else that's not an uphill battle... the best and highest use for this property would be to put a combination of both retail and a D.C.," Dremonas said.

Pete's will also be opening a location in Orland Park at the old Art Van building. For further information, visit the Pete's Fresh Market website or the Village of Tinley Park website.