A decision to sell the city-owned Erie Market highlights the challenges of keeping a grocery store in a very small community.
It’s a struggle some communities in Allen County — Humboldt, Moran, Mildred — know all too well. To survive requires creativity and commitment.
And even then, it’s not easy.
The City of Erie, population 1,030, purchased the town’s only grocery store in 2021 when the owners of Stub’s Market wanted to retire but couldn’t find a buyer. City residents mostly supported the idea; some believed the government shouldn’t get involved in business, Erie City Clerk Jamie Janssen said.
Erie Market employees became city employees, eligible for benefits typically not offered at a grocery store of that size. The store offers a deli, with daily food specials to entice a hungry lunch crowd.
Very few other cities own grocery stores. St. Paul is an example.
At first, Erie’s solution worked. National news outlets highlighted the unique arrangement, drawing curious customers from around the region.
Trouble is, the store couldn’t turn a profit, with its only healthy return from its first month of business. Since then, it has continued to lose money. In 2023, the store reported a deficit of $195,000.
“We just don’t have the foot traffic to keep it going,” Janssen said, noting residents are only a short distance to much larger stores in Chanute and Parsons.
Adding insult to injury, a Dollar General sits across the street from the Erie Market.
“Customers come in, but they purchase a small amount of items. We have too much overhead for that.”
It’s always difficult to find the right balance of inventory: enough to attract and satisfy customers, but not so much to go to waste. The city also reduced staff to a minimum, with three full-time and two part-time employees.
The market’s building also is large, leading to higher utility costs that are subsidized by the city and its taxpayers.
The city is offering the store for lease or purchase. Perhaps a private owner can qualify for grants or special funding sources that don’t apply to a city-owned store, Janssen said.
City leaders haven’t said what they will do if a buyer isn’t found. They’ve also discussed adding a fee to customer’s utility bills to offset expenses.
