These Former Theaters Have Become...Grocery Stores?

Several Former Theaters Have Been Repurposed For Grocers That Include Trader Joe's, Grocery Outlet and Natural Grocers by Vitamin Cottage

Among the fastest growing U.S. grocers are those discount, specialty and limited assortment stores that offer only a handful of brands and just a few thousand SKUs.

These chains — which include ALDI, Trader Joe’s, Grocery Outlet, Sprouts Farmers Market, Lidl and Natural Grocers by Vitamin Cottage, among others — account for less than 20% of U.S. stores that sell grocery items.

But they are collectively opening hundreds of new stores each year.

And since they operate in smaller real estate formats than conventional supermarkets — often stores of 10,000 - 30,000 square feet — these chains occasionally open in unique adaptive reuse spaces.

Including even in a handful of former theaters.

A Unique Trader Joe’s — In A Classic Theater Space

One of the most unique Trader Joe’s grocery stores is its repurpose of the former Alabama Theater in Houston.

The Alabama Theater opened in 1939 and operated until 1983.

In 1984 it was repurposed as a bookstore.

But after the bookstore closed in 2009, its REIT owner explored converting it back to a theater.

Trader Joe's, however, emerged to take the space instead — and took steps to preserve the art deco building.

Like by renovating the ornate ceiling with its medallion design and by preserving the theater's balcony.

It even created movie posters that played on the building's history as a theater.

Like the "Traders of the Lost Ark" poster that hangs in the fruit section.

From Small-Town Theater to Grocery Outlet

Blue Jay, California is an unincorporated town of ~2,500 near Lake Arrowhead in the San Bernardino mountains.

For ~35 years it also was home to the Blue Jay Movie Theater, a four screen cinema that opened in 1989 and was the only theater in the area.

But the theater closed in 2023 for an adaptive reuse conversion.

It will soon open as a Grocery Outlet store.

From Classic Theater to a Natural Foods Store

The Casa Linda Theater in Dallas opened back in 1945.

It was originally a single screen theater.

A second screen was added in the early 1970s and a few years later the Casa Linda expanded to four screens in a little over 12,000 square feet.

It operated until 1999.

While a few chains considered taking over the classic theater to continue operating it as a cinema, the space sat vacant for about a decade.

Until Natural Grocers by Vitamin Cottage, a Colorado-based specialty grocer, completed an adaptive reuse of the former theater in a grocery store.

Might we see more theater-to-grocery store conversions in the future?

It is likely that additional theaters will close in the coming years.

Especially smaller cinemas in rural towns or urban infill sites — and often the exact size and location of real estate that many growing U.S. grocery chains are pursuing.

So as more theaters become available it will not be a surprise to see the repurpose, redevelopment and adaptive reuse of these sites for grocery conversions.