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Mar 12, 2023

McKay's grocery store in Leonardtown to close soon

The produce section at the McKay’s grocery store in Leonardtown was cleared out

The produce section at the McKay's grocery store in Leonardtown was cleared out Monday afternoon, June 20, according to a store employee.

After 15 years in Leonardtown, McKay's grocery is about to close its doors permanently.

Store owner Tommy McKay confirmed that information after Southern Maryland News was initially told about the closure by a store employee on Monday evening, June 20.

McKay noted "huge energy and labor cost increases" and said that a January price increase from SMECO was adding $10,000 a month to the electric bill at each of his three remaining stores. A store at California's San Souci Plaza, which had been opened less than two years ago, shut down earlier this year.

"Everything has changed," he said, also noting the effect of inflation. "CVS is closing 900 stores this year."

McKay said that his grocery is competing against "European food giants like Giant and Food Lion." He said that Amazon is also delivering some items, including food, that have been traditionally purchased at grocery stores.

"Between COVID and the economy, it doesn't make a lot of sense to keep the store open," he said.

McKay noted that the lease of the 50,000-square-foot Leonardtown building that the company has leased since 2007 is already up. He did not have a firm closing date for the store, but noted the inventory is being liquidated.

On June 20, it seemed that about half of the store shelves were empty.

McKay said he would try to keep as many store employees as possible, including moving them to the Charlotte Hall and Hollywood stores and a seasonal outlet located next to the Charlotte Hall store that sells patio furniture and grills, along with the family's real estate holdings unit. McKay also owns the County Times, a weekly newspaper that has versions for St. Mary's and Calvert counties.

McKay is making a bid for county commissioner president as a Republican this year against incumbent Randy Guy (R) and fellow Republicans William "BJ" Hall III and current St. Mary's school board member Rita Weaver; the winner of the primary will face Democrat Natalie Weech in November. McKay held the position from 2002 to 2006, prior to three unsuccessful bids for state senator, commissioner president and state delegate.

Earlier this year when McKay was interviewed about his candidacy for commissioner president, he said the stores combined had 275 employees. On June 20, he wasn't sure how many they had but noted it is always in a state of flux in the grocery business.

"We might be able to maintain" the other two stores, he said. "The question is: do we want to? We hope we’ll be able to come to a model that works for those facilities."

"Our staff is struggling, too. These folks can hardly afford to work at the wages they’re being asked to," he said, noting that situation also applies to other non-McKay's stores.

"It's sad. I’m very sad. My family is very heartbroken," he said.

Chris Kaselemis, the county's economic development director, weighed in when asked by Southern Maryland News about the store's closing. He said, "The grocery business is super competitive and independent grocers have a very tough time competing with the national chains who can purchase items at lower prices. It's unfortunate that our local business is struggling and has been forced to close stores. Local owners are connected to our community and contribute in so many ways."

McKay noted that the Climate Solutions Now Act, or Senate Bill 528, which passed the General Assembly earlier this year, has targets for reductions in greenhouse gas emissions of 60% from 2006 levels by 2031.

"If you think that policy doesn't have an impact, you’re crazy," he said, noting it wasn't worth it to invest in the retrofits likely required to comply with the law.

The Leonardtown store has "quite a bit of age," McKay said.

That store originally was a Super Fresh and opened in 2000. After being open a few years, the store closed and was vacant for four years before McKay's leased the building in 2007, McKay said.

His family still owns the Charlotte Hall and Hollywood stores. Those opened in 1982 and 1962, he said. In addition to the San Souci store that closed earlier this year, a McKay's store on Great Mills Road closed several years ago.

"We’ve been extremely successful in Leonardtown over the years," McKay said.

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