PolicyLinkincome communities is <strong>to</strong> encourage <strong>and</strong>support small businesses. Improving the viabilityof smaller food s<strong>to</strong>res serves this goal.Community building. It is possible <strong>to</strong> improvethe quality of a small s<strong>to</strong>re that has his<strong>to</strong>ricallybeen viewed as a community problem—such asa corner s<strong>to</strong>re that primarily operates as a liquors<strong>to</strong>re—in<strong>to</strong> a community asset. This process canbuild relationships between local merchants <strong>and</strong>residents <strong>and</strong> contribute <strong>to</strong> community revitalization.ChallengesCompeting with the price, quality, <strong>and</strong>selection advantages of larger grocerys<strong>to</strong>res. Small merchants face the same costs ofconducting business as larger grocery s<strong>to</strong>res butdo not have the same scale advantages that cantranslate in<strong>to</strong> lower prices for cus<strong>to</strong>mers. Theypurchase in smaller quantities so they must payhigher wholesale costs, <strong>and</strong> they face limitedcompetition, which leaves them with less incentive<strong>to</strong> maintain competitive prices. 120 They also havelower merch<strong>and</strong>ise turnover, which can lead <strong>to</strong>poor quality produce <strong>and</strong> loss due <strong>to</strong> spoilage.Risk of changing product selection. Existingsmall s<strong>to</strong>res risk losing profits when they altertheir product selection. Because shelf space islimited <strong>and</strong> turnover is slow, merchants s<strong>to</strong>ck onlythe products they are certain will sell. 121 Manyretailers are unfamiliar with how <strong>to</strong> h<strong>and</strong>le, display,<strong>and</strong> s<strong>to</strong>ck produce. Since produce is perishable,it is critical for retailers <strong>to</strong> feel confident thatthese items will sell quickly. Produce sometimesrequires refrigeration <strong>and</strong> more space than otherproducts as well. 122 Convenience s<strong>to</strong>re ownerswho are part of a franchise generally have little<strong>to</strong> no flexibility <strong>to</strong> change their product mix. 123Cus<strong>to</strong>mer acceptance <strong>and</strong> expectations.Smaller s<strong>to</strong>res are not always highly valued bycommunity residents, who see them as inferior<strong>to</strong> the large supermarkets typical in wealthiercommunities. When the smaller s<strong>to</strong>res chargemore, residents may feel exploited <strong>and</strong> shopelsewhere. When smaller s<strong>to</strong>res are owned bypeople that belong <strong>to</strong> a different ethnic groupthan the majority of community residents, therecan be racial tensions. Small corner s<strong>to</strong>res tha<strong>to</strong>perate as de fac<strong>to</strong> liquor s<strong>to</strong>res are often linkedwith crime <strong>and</strong> alcohol-related health problems. 124<strong>Strategies</strong> <strong>and</strong> Policy OptionsReduce Costs• Collaborate <strong>to</strong> reduce costs. Creativecollaborations can help smaller s<strong>to</strong>res addressthe challenges of higher wholesale costs. Smalls<strong>to</strong>res can collaborate <strong>to</strong> leverage their collectivebuying power <strong>and</strong> engage in joint purchasing<strong>to</strong> get the lowest prices. Collaboration canallow small s<strong>to</strong>res <strong>to</strong> meet the minimumpurchase requirements set by many largedistribu<strong>to</strong>rs. If retailers are located far fromwholesalers’ warehouses, they can avoid payingcostly delivery fees by setting up a commonshipping point closer <strong>to</strong> the wholesaler, <strong>and</strong>then pick up products individually or taketurns picking up products for the group. 125• These types of collaborations haveenabled some smaller independents<strong>to</strong> compete with chain supermarkets.In the 1990s, for example, participationin a grocery s<strong>to</strong>re cooperative, CertifiedGrocers of California, facilitated the riseof independent grocery s<strong>to</strong>res in LosAngeles. 126 A potential model for a buyingcooperative that could be pursued by foodretailers is Ace Hardware s<strong>to</strong>res, which areowned <strong>and</strong> operated separately, but areunited under a br<strong>and</strong> name, <strong>and</strong> purchasecollaboratively <strong>to</strong> obtain the lowest prices. 127• Implement green building strategies<strong>to</strong> reduce costs. S<strong>to</strong>re improvementsthat call for renovation present numerousopportunities for “going green.” Whenretrofitting, retailers should consider theenergy efficiency of the s<strong>to</strong>re <strong>and</strong>/or viabilityof renewable energy sources, <strong>and</strong> useenvironmentally friendly building materials. Inaddition <strong>to</strong> the environmental benefits, thesestrategies can cut costs; for example, use ofenergy efficient refrigera<strong>to</strong>rs, lighting, <strong>and</strong>appliances can lower electric bills <strong>and</strong> usuallypay for themselves within a couple years. 12940 <strong>Healthy</strong> <strong>Food</strong>, <strong>Healthy</strong> Communities
Creating a Network for ChangeCASE STUDYA study of Philadelphia corner s<strong>to</strong>res that was published in Pediatrics by K. Borradaile <strong>and</strong> others found that 29 percent ofstudents shop at corner s<strong>to</strong>res twice a day, five days a week, <strong>and</strong> consume almost a pound worth of additional calories eachweek as a result. The <strong>Food</strong> Trust developed the <strong>Healthy</strong> Corner S<strong>to</strong>re Initiative (HCSI) <strong>to</strong> increase the availability of healthyfoods in corner s<strong>to</strong>res <strong>and</strong> educate young people about healthy snacking. HCSI partners with corner s<strong>to</strong>re owners <strong>to</strong> increasethe availability of fresh fruits <strong>and</strong> vegetables <strong>and</strong> water, <strong>and</strong> has formed the Philadelphia <strong>Healthy</strong> Corner S<strong>to</strong>re Network linking<strong>to</strong>gether corner s<strong>to</strong>re owners, community partners, <strong>and</strong> local famers. The <strong>Food</strong> Trust conducts nutrition education in schools, <strong>and</strong>runs a Snackin’ <strong>Fresh</strong> youth leadership program in which youth work <strong>to</strong>gether <strong>to</strong> make changes in their communities. A videofeaturing the Snackin’ <strong>Fresh</strong> Crew is available at http://www.youtube.com/user/The<strong>Food</strong>TrustOnVideo#p/u/0/BTUI2YBdXAY.By developing a network of s<strong>to</strong>res, instead of focusing on a single individual s<strong>to</strong>re, the <strong>Food</strong> Trust has pioneered an innovativeapproach for achieving long-term sustainability for corner s<strong>to</strong>re improvement efforts. S<strong>to</strong>re membership nearly quadrupled (from11 <strong>to</strong> 40) when one of the participating corner s<strong>to</strong>re owners saw the benefits of recruiting other s<strong>to</strong>re owners in<strong>to</strong> the network.This owner developed an entrepreneurial strategy that reduces time <strong>and</strong> effort for his fellow s<strong>to</strong>re owners <strong>and</strong> allows him <strong>to</strong>make a small but reasonable profit for himself. When in season, he buys fruit at local distribu<strong>to</strong>rs, chops <strong>and</strong> packages the fruitsalad in his certified kitchen, <strong>and</strong> delivers it once or twice a week <strong>to</strong> his fellow s<strong>to</strong>re owners. The s<strong>to</strong>re owners then sell the fruitsalad out of refrigerated barrels provided by The <strong>Food</strong> Trust through funding from the <strong>Fresh</strong> <strong>Food</strong> Financing Initiative (see pages30-31 for more information). The fruit salads have been hugely popular with students at nearby schools as well as with theirparents <strong>and</strong> gr<strong>and</strong>parents.The <strong>Food</strong> Trust is partnering with the Philadelphia Department of Public Health in their Get <strong>Healthy</strong> Philly campaign, <strong>and</strong> aims<strong>to</strong> exp<strong>and</strong> the corner s<strong>to</strong>re network <strong>to</strong> 1,000 s<strong>to</strong>res throughout the city in coming years. The <strong>Food</strong> Trust also helps supportcorner s<strong>to</strong>re efforts in other parts of the country through the national <strong>Healthy</strong> Corner S<strong>to</strong>res Network (see page 39). For moreinformation, contact Brianna S<strong>and</strong>oval (http://www.thefoodtrust.org/php/programs/corner.s<strong>to</strong>re.campaign.php).<strong>Healthy</strong> <strong>Food</strong>, <strong>Healthy</strong> Communities41