Site Selection FAQ
"Why don't we start small and grow into a larger store over time?"
Great question!
The professional research done on recent start-up food co-ops found that the smaller the co-op was, the more likely it was to fail. Of the last 20 co-ops to open in the 1,500-2,000 square foot range, 17 have closed. It used to be true decades ago that stores could open small, grow slow, and scale up over time (like the co-ops in Virginia and Grand Marais). Unfortunately, market conditions and competition from other grocers do not support this method of development in today's market. To remain profitable, we must carry a large enough volume and diversity of products to serve as a one-stop shop for most people. Free Range Food Co-op will be a full-service grocery store, not a niche market shop, and this requires the square footage to offer a full range of traditional groceries alongside the local, natural, and organic lines of products.
We learned at the Up & Coming Food Co-op conference this year that a 6,000 square foot footprint is the “magic number” where most co-ops are successful and remain open for the long-term. This is excellent news for us, because our professional market study done in 2017 and updated in 2021 reflects the ideal co-op store size for our region is between 4-6,000 square feet. Our Site Selection team takes this size recommendation into consideration with every potential site, along with dozens of other location parameters.
Tune in to next month's newsletter for more commonly asked questions about site selection!
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