Editor’s Note:
This is the third installment in a four-part series centered around grocery options within the City of Shelby — specifically aimed at level of access, variety and nutrition. The series will also discuss ongoing efforts to attract a new grocer to the city, along with the challenges that presents.
SHELBY — At least half of all food retailers in 44 percent of United States’ counties were independent grocery stores 10 years ago, according to the U.S. Department of Agriculture.
Today, these small-town grocers — especially those in rural communities — struggle to stay open amid a food retail industry largely dominated by big box stores.
A 2023 USDA report revealed that food sales from the country’s 20 largest food retailers more than doubled between 1990 and 2019.
“I would argue that every (independent) store that’s putting the lights on right now is a success story, because it’s tough out there,” said Kristin Mullins, president/CEO of the Ohio Grocers Association.
Mullins said it’s an uphill battle for independent grocery stores to open in a small community. They work on a 1- to 2-percent profit margin — meaning for every dollar they’re selling groceries at, they’re making one or two cents, she said.
“We want you to shop two times a week in the grocery store and we want you to eat at home and we want to be able to provide that healthy food,” Mullins said.
“A grocery store can do it, whereas the smaller convenient stores or the dollar stores, they tend to struggle a little more with that perimeter of the store that provides fresh and healthy food access.”
While the challenges facing independent grocers don’t seem to be going anywhere, there are still pathways to support small-town stores — including customers and existing infrastructure.
“We’re such a high-volume, low-margin industry that we have to have the community’s support,” Mullins said.
I would argue that every store that’s putting the lights on right now is a success story, because it’s tough out there.
Kristin Mullins, president/CEO of the Ohio Grocers Association
Persistent efforts continue to fill former Shelby IGA
The absence of Shelby IGA, most well-known as Cornell’s IGA, has meant several things for the city of Shelby: A grocery store provides employment. It’s an amenity for the community that keeps sales and income taxes within the city.
“For a variety of reasons, both anecdotal and just dollars and cents, it makes sense to have a grocery store right here if we can have one,” said Jessica Gribben, Shelby’s economic development manager.
In 2023, Joe and Gretchen Dzugan, owners of Dzugan Real Estate Services, purchased the former Shelby IGA building with a goal of finding another grocer to fill the space.
In the process of searching for an occupant, the Dzugans have continued efforts to modernize the building, including fresh paint and pavement.
“Our goal has always been to try to get another grocery store back in Shelby,” Joe Dzugan said in November 2024. “We are just not having any luck at this point in time.”
Conversations did take place with an interested grocery chain for about six to nine months, he said, but an inability to obtain the state liquor license ultimately ended its interest.
“If I look at other small cities that have lost their grocery store, and there are plenty to choose from, many of them have been unsuccessful in attracting a new store,” Gribben said.
The Dzugans have been working closely with Gribben to draw interest in the existing infrastructure. Gribben said she’s proud of the case that’s been made for the community, focusing on economic development in several areas as well as ongoing downtown revitalization.
Gribben said finding an occupant for the vacant space remains a personal goal of hers — and it’s high on her list.
“We’ve had so much success and so much momentum that it’s hard to not win one,” she said. “I hate to lose and I feel like having an empty building right there feels like we’re losing something.
“But if I put it in perspective to the gains that we’ve made and the way that trends are going, it is not unique to us.”
A place to socialize
Besides the essentials, small-town grocers often provide another environment for people to socialize beyond their homes or workplace.
“(Local grocers) know their customers, they’re a part of the community, they support the local baseball team, that kind of thing,” Mullins said.
In a recent Richland Source survey, 68.8 percent of respondents said they shop for groceries on a weekly basis. The task doubles as a weekly opportunity to spark a conversation with a friend, neighbor or perhaps even a stranger.
Shelby resident Taylor Elliot said big box stores lack the shopping experience a small-town store creates.
“You go to your local grocery store because it supports your community,” Elliot said. “It gives jobs, you build connections and you have that experience.”
Moving forward
Shelby Mayor Steve Schag said whoever decides to invest in the former IGA building will need to feel that there’s a potential to be profitable.
He said independent grocers must gauge how much loyalty they can expect from a smaller community for its hometown grocer.
“I would like to think it’s there (in Shelby), but only time would tell,” Schag said. “Choice number one would be to have that grocery store occupied and fully operational for our citizens in Shelby.
“But the reality is there are different venues now for getting groceries and I don’t know what that may look like five years from now (or) 10 years from now,” the mayor said.
Gribben is determined to not let Dzugan or the community down, especially with positive momentum continuing to build in Shelby.
“I still think the community wants a grocery store,” she said. “That’s the feedback I’m getting from them and we will pursue that whenever it’s viable.
“But it’s not the only thing we’re pursuing. I will still see it as a win if we fill that building with something else or multiple (other things).”
⬇️ More to come…
Tomorrow’s final installment of the four-part series will highlight two local initiatives to combat food insecurity and increase access to produce. Both efforts have received help through the Ohio Department of Health’s Creating Healthy Communities program.