Independent rural grocery stores have been in decline due to factors such as competition from newer, smaller-footprint rivals, buying-power disadvantages relative to larger chains, rural population loss, and the aging out of independent grocery store owners. This decline is leading some small towns to explore starting cooperatively owned grocery stores, as history shows that many cooperatives were formed to serve rural areas where private investment failed. Examples include farmers’ cooperatives, rural electric and telephone cooperatives, and the Farm Credit System.
Recently, the South Carolina Center for Cooperative Development surveyed a small town to assess interest in a cooperatively owned grocery store and found interesting results.
The Positive Findings
In general, the survey found substantial enthusiasm for a grocery store. The survey drew 773 complete responses from a population center of about 9,000 people. Most participants (84%) either lived in the city center or were within a 20-minute drive. Participants’ shopping habits showed that they use a variety of food outlets, with many respondents (~80%) shopping at major grocery chains and discount stores. Average monthly grocery spending ranged from $200 to $800, with a median of $400–$599.
When choosing where to shop, respondents ranked product quality first (80.7%), followed by price or value (62.7%) and product availability, selection, and variety (48.9%). When asked which product offerings were the most important, fresh produce was ranked highest, followed by meat and seafood, dairy products, organic or natural foods, and prepared foods. Locally sourced products seemed to matter more than organically sourced products for most participants: 88.6% rated local sourcing at least moderately important, while 65.7% rated organic sourcing at least moderately important.
Respondents also viewed the store as more important than a typical retail outlet, like an “anchor store” that drives foot traffic for a struggling main street. A deli or café was the most desired additional service, followed by online ordering and pickup, cooking demonstrations, community events, delivery, and nutritional education. Respondents also emphasized accessibility, parking, operating hours, professional management, and a welcoming atmosphere.
The Lukewarm Findings
Familiarity with the cooperative concept was limited. Sixty-nine percent said they were either only slightly familiar or not familiar at all with the model. Membership interest was more measured. About 61% were somewhat or very interested in becoming member-owners. Of those asked about investing, roughly three-quarters considered a one-time stock purchase of less than $300 reasonable. Engagement interest was limited, with interest in serving on a board or committee split evenly at 50% “yes” and 50% “no.”
The sample was also comparatively affluent, with about 70% reporting household incomes of $100,000 or more, suggesting that the findings may not fully reflect all income groups in the wider community.
Next Steps and Sources for Assistance
Cooperative groceries can work, though they typically do not resemble traditional grocery stores. While the survey findings point to a potentially promising market, long-term success depends on clear education (and engagement) with the cooperative model, and thoughtful collaboration with existing farmers, farm markets, and other local businesses. Potential cooperative “owners-as-customers” must also be realistic about the variety of products offered, as grocery store margins are low and inventory costs high.
The South Carolina Center for Cooperative and Enterprise Development is an example of how most states have resources to help rural towns with this issue. If you are looking to start a cooperative, many land-grant universities have extension personnel and cooperative specialists who can help with these items. Also, there are national organizations available to help cooperative grocery stores, once a cooperative has been established.
For more information:
Food Co-op Initiative https://fci.coop
National Co-op Grocers https://www.ncg.coop
Recommended citation format: Richards, Steve. “Can Cooperatives Help Reverse the Decline in Rural Grocery Stores?” Southern Ag Today 6(37.5). September 11, 2026. Permalink
