Survey Results Paint Uncertain Future For Rural Grocery Stores

MINNEAPOLIS (WCCO) – A recent survey on Minnesota's rural grocery stores shows that a majority of grocers don't expect to own their businesses in the next 10 years.

The findings of the survey, which was designed by the University of Minnesota Regional Sustainable Development Partnerships, were announced last week, and they highlight the concerns small grocers face in areas of the state where healthy and affordable food is already hard to come by.

The survey was sent out to 254 grocers in communities with fewer than 2,500 people, and 175 owners responded.

"What we found is that nearly two-thirds of rural grocery stores owners plan to be out of the business in 10 years, but only a fraction of them have a transition plan," said Kathryn J. Draeger, one of the authors of the RSDP report, in a statement.

A majority of grocers in the survey said that the biggest issue they face is competition with large chain grocery stores, as well as high operating costs and narrow profit margins.

Moreover, the buildings these groceries are housed in are often decades old and require significant upkeep. Some 43 percent of survey respondents said their buildings were more than 50 years old.

These groceries, which serve residents as well as schools, hospitals and restaurants, are vital businesses in rural communities, and researchers say that if they close, they're very difficult to reopen.

"Grocery stores are the primary source of healthy food," said Karen Lanthier, a co-author of the report, in a statement. "When they close, consumers face serious access challenges, and in some cases rely on less-healthy food as part of their diet."

Some 37 percent of the survey respondents, almost all of which affirmed that they sell fresh produce, said the nearest discount grocery store is 10-19 miles away. Twenty-five percent said the nearest store was 20-29 miles away. Only 2 percent said the nearly discount grocer was less than 10 miles away.