As signs of a new grocery store continue to surface in Sherman, Denison officials are continuing their own efforts to recruit a new grocer to the community. City officials recently spoke on Denison’s efforts to bring in what would be the city’s third grocery store into the community and the challenges the city has faced.
This comes as Sherman officials have teased the announcement of a new grocer on the horizon for the city. Sherman City Manager Robby Hefton said an announcement could be in the near future during the annual mayor’s roundtable event this fall. Meanwhile, the US Army Corps of Engineers received a request to fill a pond near the intersection of U.S. Highway 75 in November for the development of a grocer.
“There is going to be another grocery store in Denison at some point in time,” Denison Development Alliance President Tony Kaai said Monday. “It is maybe five, six or seven years off, but there will be another grocer in Denison to support that (growth).”
Currently, Denison has two major grocery options: there is an Albertsons on Crawford Street, and a Walmart Supercenter near the intersection of Morton Street and Hwy. 75. For decades, the community had a third grocery store in the form of Kroger, but the location closed in April 2019 and has since been redeveloped as an Ace Hardware location.
“We have two very good major grocery stores in Denison that serve our citizens, but the general public wants another option,” Kaai said.
Kaai has led to city’s economic development corporation for nearly 24 years. For more than a decade of that, Kaai has spoken to numerous representatives for grocery stores in hopes of attracting one to Denison. The need for another grocer comes from the constant demand for more options that the city receives from residents.
“We’ve been recruiting grocery stores for at least 15 years, heavily recruiting, because that’s the information that we get when we do our public meetings and surveys and everything else,” he said. “The number one thing business-wise that people want in Denison is a new grocery store.”
While Kaai decline to mention many of the stores he has spoken to, he noted that the DDA and city representatives had conversations with HEB about a Denison location that led to a market study of the region.
“They will run their demographics on something like a three-mile radius because it starts with the density around the store,” he said. “From there, we did a whole lot of data gathering for HEB, for a third party that does their information because we thought they are interested in us and because we have been pitching to them forever.”
Denison’s challenges
Throughout much of Kaai’s efforts, the city faced challenges when trying to attract a new grocer. Up until recently, the city faced an uphill battle due to its size. As of Monday, Kaai estimated that the city has a population of about 28,000.
However, another attractive market sits just to the south in the form of Sherman, which is approaching the 50,000 population threshold. With a larger population to the south, Kaai said it made sense that grocers may be attracted to that market first.
Despite these issues, Kaai said the market appears to be shifting for Denison. While grocers have overlooked the region in the past, market changes and other shifts since the COVID-19 pandemic have left the city in a better position.
Another factor that could attract grocers is the expected growth that could come with the Preston Harbor development. In 2023, representatives with Craig International announced plans to take over development of the 3,100 acre Preston Harbor project, which could add about 7,500 new homes along the shores of Lake Texoma on the city’s northwestern border.
Possible grocery store locations
With many grocers, the location can likely impact the major coverage area that the location will draw from. The potential location in south Sherman may attract some residents of Denison to shop there, but Kaai said he preferred a location much closer to Denison city limits.
Based on current demographics, a location along FM 691 could be a favorable site for development given its proximity to both Sherman and Denison residents, he said.
“Yes, people will shop there (south Sherman),” Kaai said. “Would the be more people from Denison shopping there if it was at 691, which is what we were pitching? There would definitely be more people from Sherman and Southern Oklahoma that would shop there.”
In 2019, representatives with the Gateway Village development and the DDA commissioned a market study and research for a possible location within the development. As a part of the study, Derrigo Studies posed a scenario where a Sprouts Farmer’s Marker opened at the intersection of FM 691 and U.S. Hwy. 75.
“Gateway Village is already a destination attraction with Texoma Medical Center, Cigna, THF Health Park and the Hilton Garden Inn / Texoma Convention Center in operation,” the report says. “This mixed-use master plan provides a concept like no other in the region where you can live, work and play.
“Over 1,100 residential units, extensive medical services, dining, shopping and entertainment tenants like “HeyDay” and “Urban Air Adventure Park” make Gateway Village poised to attract not only residents in the market trade srea but also the over 125,000 residents in its community trade area.”
Preston Harbor could also provide a favorable location for another grocer once the development comes online, Kaai said. With thousands of homes proposed in the development, and more than 1,500 acres of nearby land open for development, the intersection of U.S. Hwy. 75 and FM 84 could be a prime location.
