Small, rural grocers face huge barriers to stay open

By Genine Hopkins

Over the past several years, Marion has faced what many other rural areas in America has faced: the closing of their independent, local grocery store. Carrow’s in Farwell, Witbeck’s in Clare, and M&J Market in Marion, all face barriers to not only keep their shelves stocked with a variety of items but also to keep prices down. Local grocers often offer the only real food choices for those with transportation issues and the elderly, providing personalized service and employing local people as well. But these barriers create continual issues that are seeing the shuttering of the small, independent grocers across the country, negatively impacting local economies in these rural areas.
Witbeck’s enjoys a fierce loyalty in Clare County, with residents defeating several attempts to bring Walmart in at the Industrial Park on the north end of town. That loyalty is well deserved; the family that runs the business is serious about customer service.
“We are only as good as our customers,” said Joe Bentley, Jerry Witbeck’s son-in-law, who now runs the day to day operations, “We are involved in the community from allowing local non-profits the ability to raise funds through the hot dog sales to supporting local 4-H kids when they take their projects to the auction at the Clare County Fair.”
Indeed it is that loyalty that keeps Carrow’s in business as well. Katie Carrow and her family work hard to make sure every customer feels wanted and seen.
“Our cashiers, many of them residents in the Farwell area, know to greet everyone as they walk in, and provide a personal connection at the register. They always ask if the customer has been able to find everything they were looking for so we can make sure they go home with everything they need!” Katie told The Review.
Carrow’s also was able to return to their lower shelves after Spartan-Nash came in about eight years ago and reset some of the isles.
“We are constantly looking to stock what our customers want and make their visit easier. The shelves that were put in were WAY too high, we even had to use a ladder to stock them, which makes it difficult if not impossible for some customers to reach the items they want. We don’t want people to have to risk their safety food shopping!”
Mark Kibby, co-owner and managing partner of M&J Market in Marion feels their pain and then some. The Kibby family had sold the business to Spartan-Nash when Kibby’s father and mother retired. Several iterations of Spartan stores occupied the building before it was bought by local grocer Village Market of Lake, who struggled with keeping the grocery open. Eventually the building fell back in the Kibby family hands, but as Mark began to prepare for reopening, he realized the equipment hadn’t been maintained possibly going back to when Spartan-Nash was operating out of the building. Many of the frozen and refrigerated cases were not in working order and were costly to repair or unfortunately simply dispose of before he opened on “Deer Day” last year.
The cost of maintaining equipment is bites into smaller grocer profits, with the cost of keeping refrigeration equipment functioning or purchasing new storage going up, not down. While these grocers are cherished, in the end, they serve a small population as well, further limiting profits, as the warehouses often have suggested mark-up pricing that forces independent grocers to price many goods higher than customers can get at a big box store. Add in minimum purchase requirements, some scarcity in certain goods (big box stores get preference on first ship for some items, if they take all that item, independents receive none), and just the simple lack of buying power, and it keeps independent grocers at a grave disadvantage. Box stores have more than doubled since 1990 and Dollar General has driven adding fresh produce in many of their stores, with more competition for the grocery dollars customers have to spend. They can undercut local retailers in everything, including food.
According to the U.S. Department of Agriculture, 76 counties across the U.S. don’t have a grocery store; 34 of those counties are in the Midwest and Great Plains. Despite often having those same counties produce food, beef, and dairy on farms, they are food scarce. With rural areas losing population for decades, customers are just not there for independent grocers in these areas.
In Kansas, there are grants available through the Rural Grocery Initiative that help create, support, and sustain independent grocers in rural areas. New grocers have sprung up in schools, as cooperatives, and non-profits, with 13 new locations since 2017. The Village of Emerson, Nebraska lost its grocery store in 2020. The population of only 824 people pooled their resources together and opened a grocery co-op in a vacant American Legion building, the Post 60 Market, offering fresh fruits and vegetables, meats, household supplies, and a full range of staples and canned/boxed goods. “Owners” or those who invested their money – $160,000! – receive discounts on their purchases and even dividends. There is a board that makes financial decisions and board members are voted on by the community community and it keeps the grocery store available to its residents. Illinois, Minnesota, North Dakota, and Oklahoma have also started programs to assist local grocers.
In Michigan, the Farm to Family Program allows local grocers to apply for grants and connect with local CSAs (Community Supported Agriculture small growers), and other local farmers to make sure areas have access to fresh foods. Launched this year, the grants seek to connect supply chains in rural areas for healthy and fresh foods. There are multiple other aspects to this bill but that must remain for another article, as the list is rather long of who could qualify for help. Overall, it is seeking to do many of the same things the bills in other Midwest states have been doing.
Kibby, Bentley, and Carrow are all hopeful about the new supplier who purchased Spartan-Nash and will be replacing Spartan as their purchasing agent/warehouse.
“The company that bought Spartan-Nash, C&S, are a family owned business that has been specializing in distributing to local, independent grocers,” said Bentley, “Their outlook is hopefully a bit different toward stores like ours and I am optimistic about any changes that will occur once the sale is completed.”
Still as good things loom on the horizon, the impact of the new SNAP (Supplemental Nutrition Assistance Program) requirements as part of the bill signed into law by President Trump will also have an impact on local grocers. Increases or reductions in SNAP benefits is seen nearly immediately at the local level. With a projected $300 billion – that is nearly 30% of the total SNAP budget – will not only enforce work requirements for recipients at the national level (SNAP in Michigan has had work requirements in place for years!), but also cut benefits current and eligible recipients receive, reducing their ability to purchase food even as prices at the grocery store continue to rise.
“When SNAP benefits were increased during the 2020 COVID pandemic, we saw an increase in sales due in no small part to that increase. When that was finally eliminated this year, we felt that too with lower sales. We will of course have an effect on sales if SNAP benefits are cut. Many customers in this area are heavily reliant on SNAP to purchase their groceries,” said Bentley.