Everyone Welcome

Open 8:00 am to 8:00 pm daily

Community Owned

Since 1973

 

 
 
 

Co-op Relocation News

So, what is up with relocation? Given what we know today, we can say that we are working toward an expansion and relocation project, but we are still in the feasibility stage. As things develop, more information will come your way. That's not the most satisfying answer, unless the complex process therein is understood.

Diligence in the realm of feasibility helps ensure success. To test the feasibility of a project there are numerous questions to answer and if the answer doesn't indicate feasibility, then there's work to be done. It is an ongoing process of testing, refining and testing again. We have numerous tools and resources at our disposal to help us through the process. There are four main areas of feasibility that we are exploring:

1) Financial Feasibility - Can we afford an expansion and relocation project? Do we have enough money in the bank? Can we secure funding? Do financial projections support the Co-op's continued existence after a relocation project?

We have a financial pro forma which is a tool that projects financial performance based on multiple assumptions. With this tool we can set pre-project financial goals and determine at what point we are financially prepared to relocate.

2) Market Feasibility - Does our trade area have room to support an expanded Co-op? What size of a store? What is the competitive environment? Are there gaps in local offerings that an expanded Co-op could fill? What target areas that would maximize the success of a relocation (considering traffic, visibility, retail synergy)? What is the potential sales volume for a prospective site? (Numbers from the Market Study get plugged into the pro forma, above.)

We commissioned a general Market Study in 2015 to start to answer these questions. When a specific site is under consideration, we will update this market analysis.

3) Design Feasibility - What are the physical requirements of a potential new site? Most obvious: Can the site become a functioning grocery store? Is there appropriate square-footage? (Is there room for future expansion?) Does it allow efficient layout of retail and work spaces? Is there enough parking? Is there space for a loading dock (and access for semis)? …and so on.

Our Shared Vision process is part of developing a checklist of requirements for potential sites. We will continue to gather input from stakeholders as we refine our vision. We are looking at both what we must have and what would be nice to have. The Market Study makes specific recommendations about square footage and parking.

4) Operational Capacity or Internal Readiness - Are current operations profitable? Do we have all needed systems in place? Are we able to respond to change quickly and effectively? Would we have the capacity to operate a larger store with double (or more) the sales volume, more staff, and offering more services?

We are building capacity through continued focus on key indicator performance (sales growth, profit margin, labor margin and inventory turns) and productivity. As the Co-op grows, we are evolving our organizational structure to respond to new and greater demands.

 
 
 
 
 

 

Please Call for Selections
906.482.2030

 

1035 Ethel Avenue
Hancock, MI 49930

906.482.2030 tel
906.482.7845 fax

About
Contact
Directions

 

Employment
Classes

Co-op Kids

 

Invest
Our Board
Newsletter

 

Donations
Governance
Gift Cards

 

Open 8 am to 8 pm daily                                                                          Website development: opusWeb.com