Many rural groceries in Midwest are closing

We've previously reported on the decline of rural groceries, and one advocate says the decline has become a full-blown crisis. "These businesses are closing at an alarming rate," David Proctor, director of the Center for Engagement and Community Development at Kansas State University, writes for the Daily Yonder. "Almost daily another small-town, independently-owned store shuts its doors and closes up shop." In Iowa nearly 43 percent of groceries in towns smaller than 1,000 people have closed, and Kansas has lost nearly one in five rural groceries since 2006.

"Rural grocery stores are part of the economic engine that sustains rural communities," Proctor writes. "They are a significant source of local taxes, powering the creation and maintenance of civic services and amenities. They provide essential, stable jobs – butchers, cashiers, managers, and stockers – at a time when we are desperate for employment opportunities." Proctor explains that his research has shown many rural areas lacking full-scale groceries are "facing a crisis of access to healthy foods" such as fresh produce.

Proctor identified seven key challenges facing rural grocery owners: competition with big-box stores, operating costs, labor issues, governmental regulations, lack of community support, low sales volume and meeting suppliers' minimum purchase requirements. Among those challenges, competing with big box stores was most prevalent, with 80 percent of respondents identifying it as a challenge. "Big-box wholesalers have moved into the grocery business and now many offer large grocery sections as part of their stores," Proctor writes. "Rural store owners view these stores as competition that threatens their very survival." (Read more) (Yonder chart)