Back in 2005, Duckwall-Alco Stores decided it was going to close its store in rural Clark, S.D. after determining the unit was not generating enough profits to make it worthwhile to operate. While the move may have made bottom line sense for the retailer, area residents were losing the only store in town. Now, they were facing a 45-minute drive to get to the nearest store to buy items for their everyday needs.
It didn't take long for residents in Clark to decide that long-distance commuting to shop was not for them and they came together to open the Clark Hometown Variety Store earlier this year. The store is owned by the residents and none are allowed to hold more than three percent of its outstanding shares, which are valued at $500.
The Clark story is not unusual and is part of the growing community-owned store movement in the United States, according to a report by the Epoch Times.
The Institute for Local Self-Reliance (ILSR), an anti-big box group, claims there are now nearly 300 community- or consumer-owned stores in the U.S. generating annual sales in the neighborhood of $1 billion.
According to the group's Big Box Toolkit blog, "Community-owned stores are designed by residents to meet specific local shopping needs. Most of those that have opened thus far are downtown department stores that sell affordable clothing, shoes, and housewares."
Discussion Questions: Do you see the community store movement growing beyond rural areas to more populated suburban and urban locations? Are you familiar with any consumer-owned stores and how do they compare with big box merchants?