Berkshire Food Co-op aims to 'return to its roots' to regain financial footing

Berkshire Food Co-op aims to 'return to its roots' to regain financial footing
Berkshire Eagle
By STEPHANIE ZOLLSHAN — THE BERKSHIRE EAGLE
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GREAT BARRINGTON — The Berkshire Food Co-op is working to “return to its roots” as it faces financial challenges, with sales declining faster than expenses since the pandemic.

“Between long-term debts and sales not quite meeting expectations, coupled with really high rent costs for this downtown spot, the co-op has not been able to get ahead of those debts,” General Manager Jessica Bosworth said.

Back in February, the Berkshire Food Co-op announced it was cutting employee hours and adjusting discounts to reduce expenses amid unsuitable finances.

While anyone can shop at the grocery store that specializes in local, healthy and sustainable products, being an owner opens up shoppers to discounts. Owners — there are currently about 6,000 — pay a one-time fee of $150.

Berkshire Food Co-op market owners helped raise $1.4 million toward the construction of a new building in 2019 — doubling its size, tripling its inventory and adding a cafe. Sales growth, however, has not gone as expected in the new space, which also came with debt, according to General Manager Jessica Bosworth.

The co-op first opened in 1981 in a small space on Rosseter Street before expanding in 1993. It then relocated to Bridge Street in 2003 before moving to a 14,000-square-foot neighboring space in 2019 — doubling its size, tripling its inventory and adding a cafe.

While there isn’t one reason the business is struggling, Bosworth points to sales growth not going as projected in the new space. The move, for which owners helped raise $1.4 million, also came with debt.

“There was a certain assumption that taking an existing footprint and doubling the size would then double or further expand sales to meet that,” Bosworth said in a recent conversation with The Eagle.

Shortly after the move, the pandemic hit, bringing an influx of people to the area and a rise in home cooking, which boosted sales at the co-op. As shopping patterns shifted, the co-op adjusted its offerings to meet demand.

“We started moving away from what makes the co-op unique and different," Bosworth said.

When Bosworth joined the co-op in 2022, she said the expenses for the business were inflated to match the jump in sales. But expenses haven’t come down as quickly as the sales did.

“So we saw growth, growth, growth, growth, growth," she said, "but then as everything started normalizing, and we saw the sales levels come down to what we would consider our averages.”

Anyone can shop at the Berkshire Food Co-op market in Great Barrington, which specializes in local, healthy and sustainable products. Owners, who pay a one-time fee of $150, receive a discount.

She said the co-op wants to sustain itself without relying on fundraising and is looking at how to align expenses with current sales. This includes evaluating the store’s footprint, inventory and staffing, which management has been reviewing throughout the year.

“It's a tough time, but we're realigning and everybody's working really hard to make it work,” Bosworth said.

Since announcing its financial challenges, the co-op has seen increased involvement from owners, in addition to financial support.

“We've got a large community of people who really care about this place,” Bosworth said. “The outpouring of support has just been tremendous. Those are the types of things that really give us the energy to push forward through challenges."

The decision to go public with its financial struggles stems from a desire to be transparent with the 6,000 stakeholders and the community that has supported the co-op for 45 years. She added that transparency is a key part of the cooperative model.

“I think back to the small group of people that started their co-op back in 1981," Bosworth said. "They came together to serve a need in this region, and that was to provide food for their families, and as a way to offset these corporations and big-box stores.”

Fresh vegetables fill the shelves at the Berkshire Food Co-op market in Great Barrington.

Being transparent is about fairness and consideration for both the founders and those who have supported the co-op along the way.

“So although it wasn't easy, and we certainly had some challenging communications at the outset," she said, "I think it was important for folks to understand.”

The coop is operating in an oversaturated market, with two large grocery stores in a five-mile radius.

“At the end of the day, really the future of this organization will be decided by the people that own it and the people that shop here,” Bosworth said.

Customers check out the prepared food offerings at the "Grab & Go" section of the Berkshire Food Co-op market in Great Barrington.

Multiple longtime businesses in downtown Great Barrington have closed over the last year, including Gorman and Norton and Eagle Shoe and Boot. A number of other staple businesses are under new leadership.

“Look at any of these small businesses that have shut down over the last year,” Bosworth said. “It's scary. It's really scary.”

Brand Manager Samanatha Parson said for her, it's important to remember that local businesses are a place for the community to come together.

“People really need to think about what Great Barrington would look like without the co op. And if you feel sad when you think about that, that should be an inclination to come in and shop,” she said.

From here, the co-op is hoping to go back to its roots to be the type of store it used to be. Bosworth said she wants the co-op to work with other downtown businesses to support each other and “develop a close-knit community.”

“We started moving away from what makes the co-op unique and different,” Bosworth said. “And I think there was a certain level of attempt to be something that the co-op was never meant to be.”

Before starting with the co-op, Bosworth worked at Guido's Fresh Marketplace for 20 years. Even then, she said she chose to come to the co-op because of the “feeling that it had.”

“I hope to bring that feeling, that old feeling, back to this location," she said, "but also to work with other downtown businesses that have been around forever to create that sort of downtown homegrown feeling that used to exist.”

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