Grocery Store Decision Making Tools

Starting a Grocery Cooperative can be a challenge in rural Nebraska communities.  This business closure can have a profound impact on the community. To assist with this process, NCDC has developed two financial planning tools to assist with outlining start up costs, creation of a the first year pro forma and planning for first year operations.

Decision Making Tools for Cooperative Grocery Stores

Business Transition Tools

Once a business starts there will be at least one more transiton in the life of the business. The owner will decide at some point to transiton the business through a sale or closure.

A series of Business Transition Models shows different business transition strategies as well as the timing of decisions that need to be made.   Many types of business transitions can take years to complete.  These models show business owners and advisors many of the steps needed to take in a business transition.  The models also show what steps are needed to be taken to build community support for a multi-owner business transition.  Each model is explained and lists pros and cons of each transition.

Business Transition Models - Discover which model its your personal, financial and community needs.

Ownership Transition Research in Nebraska

In the Fall 2020, University of Nebraska-Lincoln researchers studied the perceptions and experiences of rural Nebraska grocers about transitioning rural grocery stores to new ownership. This study focused on transitions from grocery stores owned in proprietorships into stores jointly owned by a community group. Grocery store owners, employees, and community members described the ownership, market, and community context during ownership transitions, grocery store owner motives for involving community members in store ownership transitions, and community motives for involvement with these transitions. A grant from the W.K. Kellogg Foundation and the USDA Rural Cooperative Development Center helped to support this research/report as well as Nebraska Extension personnel.

The complete report is available for download here: Ownership Transition in Rural Nebraska Grocery Stores: A Multi‐Ownership Perspective

Conclusion and Recommendations

This study of Nebraska’s grocery industry cannot be generalized to all rural grocery operations. It provides insights into the challenges of operating a rural locally owned grocery as well as opportunities for pursuing models for multi-owner, community-owned operations that help to secure food access for our many rural communities. We analyzed responses from surveys of grocery store owners and employees, and responses from focus groups of individuals participating grocery stores owned by community groups and found three major themes related to lessons and challenges rural grocery stores are likely to face when they transition ownership into the hands of community groups. One, communities needed to be aware that multi-ownership was possible and

Want more information? Ownership Transition in Rural Nebraska Grocery Stores: A Multi‐Ownership Perspective 

For assistance with the Start-up Plan, Operations Plan or the Business Transition Model, please contact Charlotte Narjes (cnarjes1@unl.edu) or Cindy Houlden (choulden2@unl.edu).