I do agree that this is NOT an ideal design for a bike rack (the bike I'd use to get groceries would NOT (edited) work with the rack as designed), but I do appreciate the effort. This would get me to shop at that store, where it wasn't even an option before.
As for blocking the sidewalk, it's a non-issue at this specific location because there's no reason for pedestrians to actually walk across that section (the loading dock is back there, and the parking lot and entrance behind the camera view).
I have been to other stores where the bike racks are 100% in the way of pedestrians, when they need not be. Poorly planned or ignorance by the owner/planner... who knows?