by Jeannine DeWald, General Manager
Dear Co-op and Community Members,
Greetings, Co-op community. It has been a busy spring and summer at the Co-op, full of new experiences, milestones, and challenges. So much has been accomplished over the past few months: greenhouse season, the sale of the village building, installation of a new heat pump system for cooling and heating the new building, and the Co-op’s first profitable quarter since the start of this project.
Greenhouse season started in mid-April, but preparations began several weeks ahead. After a slow first quarter, the Co-op needed capital to fund the initial greenhouse inventory and labor investment. Vermont Community Foundation stepped up to give us a hand. With a $150,000 loan against the future sale of the village store building, we were able to fully fund the greenhouse labor and inventory expenses. Despite the wet and cool start to the season, we did quite well. Revenues from the greenhouse totaled over $227,000 from April to June, and revenues for the entire store totaled over $840,000, leaving the Co-op with a net profit of over $111,000 for the second quarter. This allowed us to fully repay our loan from VCF without touching the funds received from the sale of the village building.
In May, the Co-op contracted Bill Chidsley to design and install our new heat pump system, and work began in early June. Within three weeks, the cooling system on the grocery side of the building was up and running, and by 4th of July weekend, we had cooling on the hardware side, too. Our new system has been keeping the entire building a comfortable 75 degrees, much to the relief of staff and shoppers alike. Additional modifications to the system are upcoming, which will let us make use of fresh air to cool the building as outdoor temperatures allow. Installation of these modifications will also yield us a hefty rebate of $12,000 from Green Mountain Power, which will help offset the cost of the overall project by five thousand dollars. The new system also has the added benefit of providing heat to the store, offsetting our winter oil consumption considerably. Our hope is that we will be able to remove the oil burning furnace on the grocery side of the building, allowing us to expand our backstock area and workspace considerably.
We’ve also seen an influx of over 100 new members since the move, and many existing members have caught up on their equity payments now that they’ve returned to shopping with us at our new location. It has been wonderful to welcome so many new and returning shoppers to the Co-op. Your support makes this project possible.
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The move to Route 2 came with an abundance of capital projects, and we are working hard to tackle each of them in turn. The Co-op is lucky to have a strong and dedicated Building Committee who have been working diligently to address the many tasks we’ve handed them. Necessary work from last years’ fire inspection is nearly complete, and projects over the next year include replacement of gutters, repair or potential replacement of the grocery side roof, rebuilding the loading dock, modifications to the deli area, expansion of the receiving and backstock space on the grocery side, repairs to the rear driveway and general maintenance on the front porch.
We also have some exciting changes planned for the Hardware-side this Fall. Working closely with our hardware vendor, Emery Jensen, we have identified areas of the store that are due for some much-needed updating and improvement. A full reset, which includes an updated floor plan and shelving layout, is planned for some time in October or November. The estimated cost for this project is about $10,000, and well worth the investment. To prepare for these exciting changes, we’re sending David and Michael to Chicago for the Emery Jensen trade show! This is an excellent opportunity for them to learn about the latest hardware products, and for the Co-op to access special deals that are only available to show attendees. As an incentive, Emery Jensen is providing us with a $500 credit to offset travel expenses. In the meantime, we will soon have a brand-new display of DeWalt wrenches and sockets, as well as new shelf sets of rope and safety equipment, all at no cost to the Co-op! As plans for the new layout materialize, we will continue to share them with you. It’s a busy and exciting time for all of us.
On the grocery side, we are continuing to work to refine the product line. In the early Spring, our goal was to fill our empty shelves as quickly as possible with our best estimate of the products we felt our customers would want to buy. After a few months of very rapid overall growth, we are now taking the time to step back and review our offerings to determine our best-selling products and make adjustments accordingly. Preliminary reports from the month of July have allowed us to identify problem areas and begin to bring our buying practices in line with our revenues and sales mix. Essentially, we need to slow down our spending as we adjust to a more stable revenue stream and focus on our product mix while making the store as easy to shop as possible. Our shelving situation is challenging and exacerbates some of these problems. Our new location has limited space for backstock of items, which is why we have such tall and wide shelves on the sales floor. Merchandizing the space has proved challenging, but we are continuing to forge forward with new ideas and ones from other co-ops. Our hope is that as we work through our list of capital projects, we will gain additional backstock space by next spring, at which point we will be able to incorporate a more customer-friendly layout and improved shopping experience. In the meantime, if you have trouble finding something you’re looking for, please don’t hesitate to ask. We have a wide selection of pantry and staple items in our center aisle, and any staff member can assist you.
As always, I want to thank all of you for your support and dedication to the Co-op. We are looking forward to the many changes ahead and are working hard each day to become the best co-op we can be. My gratitude goes out to our incredible staff who have weathered countless bumps in the road on this journey, and who continue to meet new challenges as they come. This has been a huge lift for all of us and in many ways it’s just beginning. I hope to see all of you on the road ahead.