A recent study conducted by the Nelson and Pembina County JDAs, with support from Dr. Kendra Rosencrans of the Red River Regional Council, examined the financial health and community role of seven rural grocery stores—four in Nelson County and three in Pembina County. The study was funded by a $20,000 grant from the Rural Food Sustainability Grant Program, established by the State Legislature in 2023.
All of Nelson County and much of Pembina County are classified as food deserts by the USDA, meaning stores are essential providers of fresh foods for their communities due to the long distances (10 to 20-miles, or more) to the nearest supermarket. The seven small stores in the study are the primary source of food in many towns, especially for senior citizens and residents without reliable transportation. The research found that while each store plays an important role, all are navigating similar pressures: aging infrastructure, limited revenue, low purchasing volumes, and challenges retaining staff.
To help address these concerns, the study offers a set of practical recommendations. The strategies are organized into two categories: improvements that can be implemented at the store level, and broader actions that city leaders and county JDAs could take to support store sustainability and food access.
Recommendations for Store Owners and Operators:
- Use digital tools, such as Google listings, social media, to make sure stores are able to be found by travelers and area residents. Update store hours, include information about what makes the store special.
- Track daily sales by department using modern point-of-sale (POS) systems to better understand margins and identify slow-moving inventory. Take advantage of wholesale supplier’s lower-priced brands.
- Reduce shrink and spoilage through tighter inventory controls and updated cold storage units. For example, replacing outdated produce coolers can cut loss significantly.
- Become SNAP and WIC certified.
- The highest number of sales happen between 4 p.m. and 7 p.m. Expand store hours in the summers; coordinate with local events and businesses.
- Expand freshly prepared foods such as prepared meals, deli trays, grab-n-go salads and sandwiches, and hot lunch specials to attract regular foot traffic.
- Offer locally made or grown products where feasible—such as regional meats and/or bakery items—to differentiate from large box stores.
- Explore collaborative purchasing or back-office support with nearby stores to reduce wholesale costs and administrative burden.
- Join the ND Grocers Association, connect with NDAREC’s rural grocery efforts, get connected to mentors, use resources from the Rural Grocery Initiative.
Recommendations for JDAs and Local Governments:
- Assist stores in applying for equipment grants or low-interest financing for refrigeration, shelving, or energy-efficiency upgrades.
- Support the development of regional food infrastructure like shared delivery systems or mobile markets to improve supply chain efficiency.
- Help connect grocery owners to small business coaching, as well as mentoring and other supports through the ND Grocers Association, NDAREC, and the Rural Grocery Initiative.
- Launch hyper-local marketing campaigns that emphasize the value of buying groceries in town and help build customer loyalty.
- Invest in building improvements—such as lighting, ventilation, or automatic doors—to enhance safety and accessibility, particularly for seniors and people with disabilities.
By focusing on these targeted strategies, local grocery store owners and operators can improve their businesses, and Nelson and Pembina communities and counties can better support the long-term viability of their grocery stores. These businesses remain key to rural quality of life, and with the right tools and partnerships, they can continue to serve local residents effectively.
For a full copy of the study, visit: https://redriverrc.com/region-4-rural-food-access-study/