Indie Closeup: Choice Market Builds a Chain

DENVER — Mike Fogarty, founder and CEO of Choice Market in Denver, has been instrumental overseeing real innovation within supply-chain and procurement management across industries ranging from packaged food to pharmaceuticals.

In 2017, however, Fogarty pivoted and immersed himself in convenience retailing, launching Choice Market. He saw that the future of convenience-store retailing was firmly grounded in frictionless, contactless shopping, fueled by multiple platforms.

Choice Market’s foray into this emerging technology fulfillment opportunity proved profoundly timely if not prescient by late 2019.

That’s when Fogarty and his team put the finishing touches on a 5,000-square-foot store marked by robust customer fulfillment platforms, including mobile app, online ordering, click-and-collect, contactless checkout and delivery in 45 minutes or less, done using Choice Market’s in-house program or via third-party providers.

Aifi (artificial intelligence)-powered camera-vision technology allows shoppers to use the Choice Market mobile app upon entry to pick up groceries and freshly prepared meals made from its scratch kitchen, and depart via contactless checkout. Customers receive a receipt directly to their mobile device moments after leaving.

The timing of a contactless store proved critical when he coronavirus struck in early 2020, a time when more shoppers embraced functions such as self-checkout and delivery. “We were adopting this technology prior to COVID. It really was, and is, the new normal of consumer shopping; it just happened to collide with a pandemic,” says Fogarty.

Fogarty says while the multi-layered technology suite has been well embraced by customers, less tech-savvy shoppers can also pay via traditional methods if they wish. Aifi camera-only technology works well for Fogarty’s team because it was affordable to implement, essential for a smaller retail operation.

The founder’s most recent innovation became a reality in mid-April when Choice Market Bannock (rendering pictured above) celebrated a grand opening in the Golden Triangle neighborhood of Denver. The new store, the chain’s fourth, is located on the ground floor of a luxury high-rise apartment building, Parq on Speer.

In the first six weeks since Choice Market Bannock debuted, Fogarty has seen strong adoption and repeat use of contactless shopping. “Looking at baskets for folks using the technology, market baskets are up at least 20% [compared to non-contactless shopping]. During the first two weeks of opening, 60% of people returned at least twice to use the frictionless shopping again, while 20% returned at least three times. Repeat adoption is proving to be very strong,” says Fogarty.

There are 3,000 residential units either built or soon to be built on the Golden Triangle property, giving Choice Market Bannock an almost built-in customer base. “It’s a very walkable, high-density area, so we envision people coming in daily to buy three to four items at a time, maybe coming back later for more,” he says. 

“Overall, this technology stack is going to serve as the baseline architecture that we implement within other Choice stores in the future. It’s a vision-based, micromart format.”

Choice Market is in the midst of raising capital and having discussions of future expansion, with the objective to “open 10 more locations over two to three years in other Western U.S. markets,” he says. The template is built on a multitude of retail formats, urban stores located in the bottom floor of apartment complexes, micromarts, cashierless formats and vending, the latter powered by artificial intelligence “where customers can pick products, even put some back, and get charged [for] what they take out.

“We are talking to institutional foodservice about some of these formats, including hotels, hospitals and universities. We are eager to redefine what convenience is: it’s more than just smokes and Cokes at a fuel station,” says Fogarty. 

Fogarty is eager to expand aggressively into EV charging stations, with a goal to perhaps offer “six-plus fast DC charging stations” per location, charging an EV in 45 minutes or less. “We will invest and lean in on that piece, as it’s a real differentiator. We think that consumer adoption [of EV cars] will come quicker than others do.”

Foodservice is all about bowls at Choice Market, with customization at the root of the offer. “Some customers opt for quinoa with chicken or steak and teriyaki. Customization resonates with customers; bowls are our shining star.”

Fogarty says that brands such as Amy’s Kitchen have elevated frozen-food selections at Choice Market to where “it fits our business very well. We have had three-door freezer space allocation and might expand to five at Colfax and Bannock [locations], and then eventually to eight doors, all based on frozen-food popularity, especially in this market.

Half way through 2021, Fogarty continues to contend with finding quality workers. “We pay above the average hourly wage within c-stores, but we’re struggling to secure quality talent,” says Fogarty, who employs 50 people total. “It’s a systemic problem we see within restaurants and grocery too. The government assistance program has definitely helped keep people at home.”