Thursday, May 29, 2014

Some rural grocers survive, thrive in a struggling market that has been overrun by large chain stores

Some small-town grocery stores are making a comeback, but it hasn't been easy to keep up in an economy that has brought many rural grocers to close their doors, while chains like Wal-Mart and Target keep popping up in rural towns or close enough that they are the only viable option for many local residents.

Photo: Christopher Gannon/Des Moines Register
One such store that has thrived has been Mulholland's, a family-run store in Malvern, Iowa, that opened in the 1870s. The store, which has 11 employees, sees about $1 million in sales annually, Marco Santana reports for The Des Moines Register. Owner Tom Mullholland said the store has been successful because it "has diversified its products, offering a meat market, grocery store and catering business all under one roof. That variety, his meat counter's reputation and the competitive prices draw people from outside of Malvern." Changes became easier when the store won a $10,000 statewide entrepreneurial competition.

But small-town grocery stores offer more than just food. They are gathering places for community members and are often supporters of the community, Santana writes. A good example is in Humeston, Iowa, where residents 10 years ago built a grocery store from scratch, raising $300,000 for the business.

"Their efforts reflect many of the reasons some industry experts say rural grocery stores have been able to stave off a brutal decline and have leveled off its numbers," Santana writes. "The store serves as an economic engine, a meeting place and a point of pride." Residents say at least 14 new businesses have opened a direct result of the grocery store.

The two stores might be a rarity Iowa. The Center for Rural Affairs conducted a study in 2010 that found that in the state from 1995 to 2005, the number of grocery stores fell by half, while Target and Wal-Mart increased their numbers175 percent, Santana writes. While no studies have been released since, the Iowa Grocery Industry Association "says it has 191 rural independent members today, up from 145 in 2004. But officials say that could be just as much a result of efforts to recruit members to the association as a growth in rural stores." (Read more)

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