Consultant Carl Sherman pitches grocery-store recruitment as council probes profitability concerns

Carl Sherman, principal of the Carl Sherman Group, told the Killeen City Council on Aug. 19 that his firm would target grocery retailers for North Killeen and other underserved parts of the city and use broker and site-selector relationships to recruit tenants. Sherman said retail “leakage” from the city totals roughly $393,800,000 in grocery spending that occurs outside Killeen.

Sherman said his firm specializes in a small set of retail types — grocery stores, hotels and restaurants — and offers targeted trade-show representation, site-ready work and incentive packaging. He described a process that includes a market study (he estimated six-to-eight weeks), trade-show representation and ongoing broker engagement.

Why it matters: North Killeen has lacked a full-service grocer since 2019 and residents and council members repeatedly expressed frustration that previous efforts have not resulted in a long-term grocery tenant. Council members asked Sherman for concrete differences between his approach and prior efforts and for timeline expectations.

Council questions and response: Council members repeatedly pressed Sherman on profitability and how to drive sufficient daily traffic for a store in North Killeen. Council member Segarra said a critical challenge is demand: “If you have no demand, then it’s hard to get somebody in here because they need to be profitable.” Sherman replied that his work emphasizes relationships and data and that he would bring brokers and site locators who already work in Dallas–Fort Worth, Austin and other markets to promote Killeen at conventions and trade shows.

Timing: Sherman said a focused grocery study takes about six to eight weeks and that trade-show schedules (including ICSC and grocery-specific events) shape outreach timing. He did not provide a guaranteed timeline for a signed lease, repeatedly noting there are no guarantees in retail recruitment.

Cost and scope: Sherman presented his team and approach but did not provide a written fee proposal during the meeting. Councilmembers asked about fees and next steps; Sherman asked the council to consider engaging his firm but no contract or payment was approved at the meeting.

Context and council next steps: Council members told Sherman they are reviewing multiple proposals for grocery recruitment and will not make an immediate decision. Several members pushed for demonstrated, practical steps to ensure profitability for any prospective grocer and asked staff to consider local options alongside outside consultants.

Ending: Sherman thanked the council for the time and the chance to present; council members said they appreciated additional proposals but reiterated concern that prior recruitment efforts had not yet produced a long-term grocery tenant.