The TPSS Board of Representatives is considering adding a second cooperative grocery store to our current operations on Ethan Allen Avenue in Takoma Park. The analysis is led by our General Manager Mike Houston, and includes input from industry experts on market conditions, economic and operational feasibility and community support for a second store.
Why is TPSS considering a second store expansion?
- TPSS’s value-based mission is more important in today’s world than ever before. Expanding the cooperative footprint helps:
- Increase access to fresh, organic and healthy foods with an emphasis on locally grown and produced food
- Keep wealth within communities through the co-op ownership business model
- Provide a community-focused alternative to the large corporate grocery chains, which are in business to provide profits to shareholders
- Provide a new source of fairly compensated jobs with excellent benefits
- The board is focused on the long-term financial health of our cooperative.
- Our current sales-per-square foot at the Ethan Allan location are at an industry high; with little opportunity to increase sales in our single location, we will not be able to meet rising expenses (labor, utilities, product) without raising prices, risking a decline in patronage.
- A second store will provide opportunity for sales growth, allowing the co-op to better absorb rising costs while keeping prices as low as possible
- Greater purchasing volume can reduce costs and allow for savings to be passed on to shoppers
The factors that will need to be met in order to proceed with the opening of a second store include:
- No negative effects on the current store and service to our members and shoppers
- A strong financial pro forma that gives us high confidence in the investment
- The right location in a community that welcomes the unique value proposition of a TPSS co-op and has the potential to support the new store through sustained patronage
- Increases the efficiency of operations, such as backstock storage and deliveries.
We welcome your comments and questions. Please drop us a note at board@tpss.coop