Business
'Who's going to live here?' What happens when an e-commerce warehouse takes out your neighborhood
Benjamin and Christine Granillo bought their 2.25-acre property in San Bernardino County four decades ago. They built their home by hand and surrounded it with a lush grove of avocado, orange and lemon trees.
“We thought we’d be here for the rest of our life,” Christine Granillo, 77, said as she tended to her trees on a recent afternoon.
But their neighborhood in unincorporated Bloomington is rapidly transforming, as developers convert the 10 Freeway and its adjacent communities into a logistics corridor connecting goods shipped into Southern California ports with online shoppers across the nation. An industrial real estate company based in Orange County is demolishing 117 homes and ranches in rural Bloomington to make way for more than two million square feet of warehousing space. The project will serve as yet another distribution center dedicated to storing and moving the vast array of products consumers want delivered to their doorsteps.
Benjamin and Christine Granillo, who built their home by hand in rural Bloomington, will soon look out on a sprawling online fulfillment center.
(Robert Gauthier / Los Angeles Times)
All the neighbors across the street from the Granillos sold their homes to the developer, and many have already been bulldozed. The Granillos opted not to sell — and now look out their stately front gate at the rubble, soon to be supplanted with a 479,000-square-foot fulfillment center. Their street will become a busy truck route. Next door will be a parking lot with hundreds of truck and trailer stalls.
Christine Granillo mourns the loss of her neighbors and her view of the San Bernardino Mountains. But, she added, “What can you do about it? There’s really nothing you can do about it.”
In November 2022, San Bernardino County supervisors voted 4-0 to approve the Bloomington Business Park, a 213-acre industrial park that promises to bring several thousand jobs to Bloomington, a majority Latino community of 23,000 residents.
The deal came with trade-offs familiar to the Inland Empire communities being asked to shoulder the massive distribution centers integral to America’s online shopping habit: An environmental impact report found the development would have “significant and unavoidable” impacts on air quality. But it would bring jobs to a working-class community in need of them, and Howard Industrial Partners has pledged to provide millions of dollars in infrastructure improvements: new streets with traffic lights and sidewalks; a modern sewer system in an area that still relies on aging septic systems.
And because the warehouse project would be about 50 feet from Zimmerman Elementary School, the developer agreed to pay $44.5 million to the Colton Joint Unified School District in a land swap that will usher in a state-of-the-art school nearby.
Joaquin Castillejos advocates for Bloomington residents whose neighborhoods are targeted for warehouse projects. But he said people are experiencing the impact of years of poor planning.
(Robert Gauthier / Los Angeles Times)
Gary Grossich, a member of Bloomington’s Municipal Advisory Council, recommended that supervisors support the development. Surrounding cities like Rialto and Fontana are embracing warehouse development, he said, and this was an opportunity for Bloomington to reap the benefits of a booming industry.
“The warehouse industry was the hot market,” he said, “and that was the only way that myself and others could see that we were going to get to the greater good, which is to get more sheriff’s deputies, more public safety, more services for our community and eventually balance our books.”
Mike Tunney, vice president of development at Howard Industrial Partners, said the developer shares those goals. “Overcoming these types of challenges and opportunities are the fundamental tenets of our development philosophy,” Tunney said.
But the project has left Bloomington fractured, with a stinging sense of winners and losers: Many who sold their homes say they got a good price and were happy to move on, while many of the neighbors left behind see a future with more concrete and semi-trailers and a hollowing out of the community’s rural culture.
Esmeralda Tabares, left, calls the conversion of rural neighborhoods to industrial developments “just a complete shift in the culture and lifestyle” of Bloomington.
(Robert Gauthier / Los Angeles Times)
Esmeralda Tabares, 23, part of a group called Concerned Neighbors of Bloomington, described the transition from rural residential to industrial development as “just a complete shift in the culture and lifestyle we have.” Many Bloomington residents ride horses; her family owns a plant nursery.
She questions why San Bernardino County is relying on a developer to provide the community with critical infrastructure such as sidewalks and sewers.
“It’s just easier for them to shift to a warehouse and say, ‘Well, we’re going to let them come in and take over your community,’” she said. “But now what community is that going to be? Because they’re taking people out, and soon who’s going to go to the school? Who’s going to live here?”
Agents associated with Howard Industrial Partners approached Raquel Diaz several years ago about selling her home in a Bloomington neighborhood a mile south of the 10 Freeway with an offer that wouldn’t go through until the county approved the project.
She and her family had purchased their home in 2012 for $140,000. It was the first home for her family of five, she said, and they were “super excited.” But the three-bedroom house on Locust Avenue quickly became a nightmare.
The house flooded whenever it rained. It reeked of moisture, and she and her husband worried about raising young kids amid mold.
Their street had no sidewalks, but that didn’t stop people from speeding by in their cars. Accidents were alarmingly common, she said. Her kids were forbidden from checking the street-side mailbox or taking out the trash.
“We ended up with a lemon of a house,” she said. “We were happy to be in Bloomington, and it just didn’t end up working out for us.”
By the time the county approved the warehouse development, home prices across Southern California had skyrocketed. Diaz said the developer encouraged them to find a home they wanted to buy — even if it cost above the price they had originally negotiated — and to make sure it was on a hill. The company would cover the cost.
Unincorporated Bloomington is transforming, as developers look to raze neighborhoods near the 10 Freeway to create a logistics corridor dedicated to online shopping needs.
(Robert Gauthier / Los Angeles Times)
They selected a five-bedroom, five-bathroom home in Highland, a nearby suburb at the base of the San Bernardino Mountains, and closed on the property in January 2023 for $1.05 million. The 3,800-square-foot home has a pool and views. It’s on a sewer system, and while their residential street doesn’t have sidewalks, the nearby roads have sidewalks and bike lanes.
“It still feels unreal where we ended up,” she said. “It’s beautiful. I completely love where I live.”
Diaz has heard other residents say that homeowners were harassed and pressured to sell. She is adamant that’s not the case.
“No one is forcing me out,” she said. “It was a blessing to get the opportunity to be able to have a new start.”
Carolina Rios also saw the developer’s offer as an opportunity.
Rios and her family paid $225,000 for their Bloomington home and lived there about 13 years. She has fond memories of the three-bedroom house on Laurel Avenue: She threw her daughter’s quinceañera there, and she and her husband were married in the yard.
But the house was old, and instead of storm drains, the homes on her street had pipes under the driveways that flowed into ditches. The street flooded every time it rained. They had to walk atop pallets and bricks to cross the yard.
“Across the street, their ditch was 24/7, 365 days a year full of water and mosquitoes and raccoons and snakes and all sorts of fun wildlife to go to the zoo and look at,” she said. “But not in my house, around my kids.”
She agreed to sell in 2016; she said the developer adjusted the purchase price in 2023 — to $1.4 million — after the county approved the project, in recognition of rising home prices. In late December, she closed on a new house in Riverside with an extra bedroom, a swimming pool and an enclosed patio. She paid $1.2 million in cash.
She knows some people are opposed to warehouse development, but she says the industry is bringing good jobs. Her oldest children, ages 27 and 24, both work at a FedEx warehouse in Bloomington, where they have flexible hours and get frequent raises, she said.
Jessie Ortiz practices roping skills in the backyard of his family’s Bloomington home.
(Robert Gauthier / Los Angeles Times)
While some homeowners seized on the opportunity to move out of Bloomington, Felipe and Blanca Ortiz felt blindsided when their landlord sold the ranch home they were renting to the developer.
The Ortizes and their four children have lived on the two-acre property for more than a decade. They’ve maintained their family traditions from the Mexican state of Morelos, raising horses, goats and chickens on their small property.
They loved riding their horses through the hills behind their home, and regularly traveled to other cities to ride their horses in parades, decked out in traditional Mexican cowboy and cowgirl attire. They organized 100-horse processions as fundraisers for neighbors in need.
“It’s their entire lives,” Felipe Ortiz said, as he shared TikTok videos of his kids performing on horseback.
Felipe Ortiz and his family are being evicted from the ranch home they have rented for more than a decade.
(Robert Gauthier / Los Angeles Times)
In February, the family got a notice informing them their rental agreement would end in 60 days. It came from a company connected to Timothy Howard of Howard Industrial Partners — the only indication the family had that their rental home had been sold.
That same day, footage from the Ortiz family’s security camera shows an excavator knocking down the chain link gate in front of the ranch. The two youngest Ortiz kids, ages 6 and 12, were home at the time. The family viewed it as an act of intimidation.
Tunney, with Howard Industrial Partners, said it was “regrettable” that the previous owner didn’t disclose the sale to the Ortiz family.
“Additionally, it was not disclosed to us that there were occupants on the property,” Tunney said. “The incident with the excavator was inadvertent as the operator was scheduled to work at a nearby site and confused the addresses.”
Several months later, the family is still living in the home, waiting out the eviction process. Ortiz says he is struggling to find another property that will accommodate the family of six and their eight horses. As their search wears on, he said, his kids are traumatized. His youngest returns from school each day wondering if their home has been knocked down.
“Every day, the machines pass by here to knock down homes behind us,” Ortiz said. “And you’re left with the fear that they are coming to knock down our house.”
As homes are demolished in rural Bloomington to make way for a warehousing project, the neighbors who remain look out at rubble.
(Robert Gauthier / Los Angeles Times)
As the demolitions proceed, a coalition of environmental groups has sued San Bernardino County and Howard Industrial Partners, trying to halt the project. The lawsuit, alleging violations of state environmental and fair housing laws, seeks to vacate the county’s approval and require a more “meaningful” review.
Adrian Martinez is deputy managing attorney for Earthjustice, the group representing the defendants. He called their effort a key moment in “the fight against the freight industry and its disregard for public health.”
“There are people who don’t want these warehouses in their communities and they just want to be left with peace,” Martinez said. “I think the inflection point is this kind of misguided notion that to give a community resources, you have to stuff thousands of trucks in the community and air pollution. And there’s no place in the country that this story is more robust than the Inland Empire and Bloomington in particular.”
A hearing is scheduled for later this month in San Bernardino County Superior Court.
“Everyday, the machines pass by here to knock down homes behind us,” Felipe Ortiz says of his family’s plight. “And you’re left with the fear that they are coming to knock down our house.”
(Robert Gauthier / Los Angeles Times)
Meanwhile, just a couple miles away, residents in southeastern Bloomington are starting to hear from developers interested in building more warehouses in the area.
Daniela Vargas, 24, said her parents bought their house there more than two decades ago. For her parents, both Mexican immigrants, it’s a deep source of pride to own a home they could pass down to their four children.
Vargas’ family raises chickens on their land, but the surrounding area is pockmarked with industry. Just a short drive from the family’s home is another warehouse complex, a railroad and the 10 Freeway.
Recently, they’ve received phone calls and “strange-looking mail” from developers interested in buying their home, Vargas said: “It looks like a check that says, ‘Here’s X amount of money, call us to make it real.’”
She said her family doesn’t want to leave, but it feels inevitable that their neighborhood will be the next to transform.
“Anyone that moves out of Bloomington, it’s all valid reasoning,” Vargas said. “My family is really prideful. But if the decision comes that warehouses are going to be developed here and everybody is leaving, we can’t remain with so much pollution around us, with so much traffic and with no real neighbors or neighborhood amenities.”
This article is part of The Times’ equity reporting initiative, funded by the James Irvine Foundation, exploring the challenges facing low-income workers and the efforts being made to address California’s economic divide.
Business
A tale of two Ralphs — Lauren and the supermarket — shows the reality of a K-shaped economy
John and Theresa Anderson meandered through the sprawling Ralph Lauren clothing store on Rodeo Drive, shopping for holiday gifts.
They emerged carrying boxy blue bags. John scored quarter-zip sweaters for himself and his father-in-law, and his wife splurged on a tweed jacket for Christmas Day.
“I’m going for quality over quantity this year,” said John, an apparel company executive and Palos Verdes Estates resident.
They strolled through the world-famous Beverly Hills shopping mecca, where there was little evidence of any big sales.
John Anderson holds his shopping bags from Ralph Lauren and Gucci at Rodeo Drive.
(Juliana Yamada / Los Angeles Times)
One mile away, shoppers at a Ralphs grocery store in West Hollywood were hunting for bargains. The chain’s website has been advertising discounts on a wide variety of products, including wine and wrapping paper.
Massi Gharibian was there looking for cream cheese and ways to save money.
“I’m buying less this year,” she said. “Everything is expensive.”
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The tale of two Ralphs shows how Americans are experiencing radically different realities this holiday season. It represents the country’s K-shaped economy — the growing divide between those who are affluent and those trying to stretch their budgets.
Some Los Angeles residents are tightening their belts and prioritizing necessities such as groceries. Others are frequenting pricey stores such as Ralph Lauren, where doormen hand out hot chocolate and a cashmere-silk necktie sells for $250.
People shop at Ralphs in West Hollywood.
(Juliana Yamada / Los Angeles Times)
In the K-shaped economy, high-income households sit on the upward arm of the “K,” benefiting from rising pay as well as the value of their stock and property holdings. At the same time, lower-income families occupy the downward stroke, squeezed by inflation and lackluster income gains.
The model captures the country’s contradictions. Growth looks healthy on paper, yet hiring has slowed and unemployment is edging higher. Investment is booming in artificial intelligence data centers, while factories cut jobs and home sales stall.
The divide is most visible in affordability. Inflation remains a far heavier burden for households lower on the income distribution, a frustration that has spilled into politics. Voters are angry about expensive rents, groceries and imported goods.
“People in lower incomes are becoming more and more conservative in their spending patterns, and people in the upper incomes are actually driving spending and spending more,” said Kevin Klowden, an executive director at the Milken Institute, an economic think tank.
“Inflationary pressures have been much higher on lower- and middle-income people, and that has been adding up,” he said.
According to a Bank of America report released this month, higher-income employees saw their after-tax wages grow 4% from last year, while lower-income groups saw a jump of just 1.4%. Higher-income households also increased their spending year over year by 2.6%, while lower-income groups increased spending by 0.6%.
The executives at the companies behind the two Ralphs say they are seeing the trend nationwide.
Ralph Lauren reported better-than-expected quarterly sales last month and raised its forecasts, while Kroger, the grocery giant that owns Ralphs and Food 4 Less, said it sometimes struggles to attract cash-strapped customers.
“We’re seeing a split across income groups,” interim Kroger Chief Executive Ron Sargent said on a company earnings call early this month. “Middle-income customers are feeling increased pressure. They’re making smaller, more frequent trips to manage budgets, and they’re cutting back on discretionary purchases.”
People leave Ralphs with their groceries in West Hollywood.
(Juliana Yamada / Los Angeles Times)
Kroger lowered the top end of its full-year sales forecast after reporting mixed third-quarter earnings this month.
On a Ralph Lauren earnings call last month, CEO Patrice Louvet said its brand has benefited from targeting wealthy customers and avoiding discounts.
“Demand remains healthy, and our core consumer is resilient,” Louvet said, “especially as we continue … to shift our recruiting towards more full-price, less price-sensitive, higher-basket-size new customers.”
Investors have noticed the split as well.
The stock charts of the companies behind the two Ralphs also resemble a K. Shares of Ralph Lauren have jumped 37% in the last six months, while Kroger shares have fallen 13%.
To attract increasingly discerning consumers, Kroger has offered a precooked holiday meal for eight of turkey or ham, stuffing, green bean casserole, sweet potatoes, mashed potatoes, cranberry and gravy for about $11 a person.
“Stretch your holiday dollars!” said the company’s weekly newspaper advertisement.
Signs advertising low prices are posted at Ralphs.
(Juliana Yamada / Los Angeles Times)
In the Ralph Lauren on Rodeo Drive, sunglasses and polo shirts were displayed without discounts. Twinkling lights adorned trees in the store’s entryway and employees offered shoppers free cookies for the holidays.
Ralph Lauren and other luxury stores are taking the opposite approach to retailers selling basics to the middle class.
They are boosting profits from sales of full-priced items. Stores that cater to high-end customers don’t offer promotions as frequently, Klowden of the Milken Institute said.
“When the luxury stores are having sales, that’s usually a larger structural symptom of how they’re doing,” he said. “They don’t need to be having sales right now.”
Jerry Nickelsburg, faculty director of the UCLA Anderson Forecast, said upper-income earners are less affected by inflation that has driven up the price of everyday goods, and are less likely to hunt for bargains.
“The low end of the income distribution is being squeezed by inflation and is consuming less,” he said. “The upper end of the income distribution has increasing wealth and increasing income, and so they are less affected, if affected at all.”
The Andersons on Rodeo Drive also picked up presents at Gucci and Dior.
“We’re spending around the same as last year,” John Anderson said.
At Ralphs, Beverly Grove resident Mel, who didn’t want to share her last name, said the grocery store needs to go further for its consumers.
“I am 100% trying to spend less this year,” she said.
Business
Instacart ends AI pricing test that charged shoppers different prices for the same items
Instacart will stop using artificial intelligence to experiment with product pricing after a report showed that customers on the platform were paying different prices for the same items.
The report, published this month by Consumer Reports and Groundwork Collaborative, found that Instacart sometimes offered as many as five different prices for the same item at the same store and on the same day.
In a blog post Monday, Instacart said it was ending the practice effective immediately.
“We understand that the tests we ran with a small number of retail partners that resulted in different prices for the same item at the same store missed the mark for some customers,” the company said. “At a time when families are working exceptionally hard to stretch every grocery dollar, those tests raised concerns.”
Shoppers purchasing the same items from the same store on the same day will now see identical prices, the blog post said.
Instacart’s retail partners will still set product prices and may charge different prices across stores.
The report, which followed more than 400 shoppers in four cities, found that the average difference between the highest and lowest prices for the same item was 13%. Some participants in the study saw prices that were 23% higher than those offered to other shoppers.
At a Safeway supermarket in Washington, D.C., a dozen Lucerne eggs sold for $3.99, $4.28, $4.59, $4.69 and $4.79 on Instacart, depending on the shopper, the study showed.
At a Safeway in Seattle, a box of 10 Clif Chocolate Chip Energy bars sold for $19.43, $19.99 and $21.99 on Instacart.
The study found that an individual shopper on Instacart could theoretically spend up to $1,200 more on groceries in one year if they had to deal with the price differences observed in the pricing experiments.
The price experimentation was part of a program that Instacart advertised to retailers as a way to maximize revenue.
Instacart probably began adjusting prices in 2022, when the platform acquired the artificial intelligence company Eversight, whose software powers the experiments.
Instacart claimed that the Eversight experimentation would be negligible to consumers but could increase store revenue by up to 3%.
“Advances in AI enable experiments to be automatically designed, deployed, and evaluated, making it possible to rapidly test and analyze millions of price permutations across your physical and digital store network,” Instacart marketing materials said online.
The company said the price chranges were not dynamic pricing, the practice used by airlines and ride-hailing services to charge more when demand surges.
The price changes also were not based on shoppers’ personal information such as income, the company said.
“American grocery shoppers aren’t guinea pigs, and they should be able to expect a fair price when they’re shopping,” Lindsey Owens, executive director of Groundwork Collaborative, said in an interview this month.
Shares of Instacart fell 2% on Monday, closing at $45.02.
Business
Apple, Google and others tell some foreign employees to avoid traveling out of the country
Big Tech companies, including Apple, Google, Microsoft, and ServiceNow, have warned employees on visas to avoid leaving the country amid uncertainty about changing immigration policy and procedures.
Following an attack on National Guard members in Washington, the Trump administration expanded travel bans earlier this month, and beefed up vetting and data collection for visa applicants. The new policy now includes screening the social media history of some visa applicants and their dependents.
Soon after the announcement, U.S. consulates began rescheduling appointments for future dates, some as late as summer 2026, leaving employees who required appointments unable to return.
“Please be aware that some U.S. Embassies and Consulates are experiencing significant visa stamping appointment delays, currently reported as up to 12 months,” noted an email sent by Berry Appleman & Leiden LLC, the immigration firm that represents Google. The advisory also recommended “avoiding international travel at this time.”
Business Insider earlier reported on the travel advisories.
Microsoft’s memo noted that much of the rescheduling is occurring in India, in cities such as Chennai and Hyderabad, and that new stamping dates are as far out as June 2026.
The company advised employees with valid work authorization who were traveling outside the U.S. for stamping to return before their current visa expires. Those still in the U.S. scheduling upcoming travel for visa stamping should “strongly consider” changing their travel plans.
Apple’s immigration team also recommended that employees without a valid H1-B visa stamp avoid international travel for now.
ServiceNow, a business software company, similarly issued an advisory recommending that those with valid visa stamps return to the U.S.
Microsoft declined to comment on its memo. Apple, Google and ServiceNow did not immediately respond to requests for comment.
Companies warned that delays due to enhanced screening is for H-1B, H-4, F, J and M visas.
H-1B is a high-skilled immigration visa program that allows employers to sponsor work visas for individuals with specialized skills. The program, capped at 85,000 new visas per year, is a channel for American tech giants to source skilled workers, such as software engineers.
Big Tech companies such as Amazon, Google, and Meta have consistently topped the charts in terms of the number of H-1B approvals, with Indian nationals as the largest beneficiaries of the program, accounting for 71% of approved H-1 B petitions.
H-1B visas are awarded through a lottery system, which its critics say has been exploited by companies to replace American workers with cheap foreign labor.
In September, the Trump administration announced a $100,000 fee for new H-1B employee hires. But after severe pushback, it clarified that it applied only to employers seeking to use the H-1B visa to hire foreign nationals not already in the U.S.
The H-1B program is an issue that has not only animated the right but also splintered it. Those on the tech-right, such as Elon Musk and David Sacks, are strongly in favor of strengthening skilled immigration, while the core MAGA base is vehemently opposed to it.
Proponents of the program often highlight that skilled worker immigration made the U.S a technological leader, and nearly half of the fortune 500 companies were founded by immigrants or their children, creating jobs for native-born Americans.
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