The Roanoke Times | File June

Ukrop's in the Ivy Market retail center on Franklin Road in Roanoke will close Oct. 24.

Ukrop's Super Market announced Friday what some in the community have anticipated for the past year.

The Richmond-based chain will close its Roanoke store Oct. 24, more than two years after it came to the city with a rock star-like debut.

"We wish it had worked out differently," said Bobby Ukrop, Ukrop's chairman, president and CEO, in a news release announcing the Roanoke store's closure. "It's painful for many reasons, not the least of which is that we will no longer be able to offer employment to associates who have diligently served Ivy Market customers."

Meanwhile, a city tax incentives deal for the developer of the retail center, which hinges on the grocer's success, likely is in jeopardy as a result of the store's closing.

With an underground parking garage, specialty foods and an in-store cafe, Ukrop's rode into Roanoke with a successful track record as a family-owned chain that bases its business on Christian principles, closes its stores Sundays and does not sell alcohol.

But the grocer's fanfare here was short-lived.

Ukrop's executives said in December that sales needed to improve significantly in Roanoke or the store could not survive. Ukrop blamed an undeveloped shopping center surrounding the Roanoke store for troubles drawing customers, along with competition from the valley's established grocery chains, including Kroger and Food Lion. A long-delayed Walgreens drug store opened last month adjacent to Ukrop's at the Ivy Market retail center on Franklin Road.

Meanwhile, two supermarket industry publications reported in the past two months that Ukrop's is in talks with a buyer, possibly a private equity group, for its entire 28-store chain. Ukrop's has declined to confirm these reports.

Locally, there's much pinned on Ukrop's success, including a deal that a local developer made with the city in 2004.

Through a performance agreement crafted with the city, IMD Investment Group, the developer of Ivy Market, can receive the amount that the retail center generates in tax revenue up to $600,000 annually for 15 years. This year, IMD received $522,542 from the city for Ivy Market's first grant year.

It's unclear what will happen with the agreement now that Ukrop's will close.

On Friday, Bland Painter of IMD Investment did not return a call to his Troutville office for comment.

"It's a big loss for the city," said David Trinkle, a city councilman, about Ukrop's closing. "In terms of the future, obviously, it's not good for Roanoke to have brand-new vacant retail space."

He added, "Chances are the incentives won't fall in place."

The First Market Bank branch inside the 58,000-square-foot Ukrop's store will be open until Dec. 18.

Ukrop's closing may benefit some of its competitors, though one store owner acknowledged that the closure is a loss for the business community.

Everett "Rett" Ward, owner of Tinnell's Finer Foods in South Roanoke, said he anticipates that Tinnell's sales will increase in the wake of Ukrop's closing, but he expressed dismay about the larger store's demise.

"I'm very sad," Ward said. "The Ukrop family has always been a hero to me in terms of how their business was begun and grown. I've tried to emulate their store's great customer service."

Now, he said, there will be fewer grocery stores competing for the same grocery dollar, which should benefit Tinnell's. And Tinnell's might consider adopting some of the specialized food offerings that seemed to work for Ukrop's, Ward added.

Stephanie Starkey of Salem, who shopped at Ukrop's several times a month, said she'll miss the variety the grocer brought to the area. She said she particularly liked its meat department, where "everything was nice and neat."

But Ukrop's prices for some foods were too high, compared with other local stores, such as Food Lion, said Anne Surber of Roanoke.

Plus, "If Ukrop's were open on Sunday and if they sold wine and beer, they would have probably had an easier time" in Roanoke, Surber said.

Two years ago, a local wine retailer landed in a store space beside Ukrop's to sweep up business from grocery shoppers who wanted wine and beer. But Kimberly Eakin, owner of Wine Gourmet, said Friday that she does not expect Ukrop's closing to impact her sales significantly.

"I might lose some small sales, like a six-pack or a bottle for dinner," said Eakin, who moved her shop from Daleville to Franklin Road in Roanoke. "But we truly depend on folks that come here to purchase wine and beer in quantity."

Still, Wine Gourmet's wine sales have doubled, and beer sales quadrupled since its move.

Staff writers Duncan Adams and Katelyn Polantz contributed to this report.