By Joel van der Veen

CRAIK — Another year of net losses for the Co-op grocery store in Craik has prompted questions about the store’s future.

Palliser Plains Co-op, which operates the store, mailed out an update to members in Craik earlier this month.

According to the update, the grocery store had $1.25 million in sales last year, a margin of $208,848, and expenses of $293,359.

The store’s net losses totaled $103,774. When patronage from Federated Co-op is factored in, net losses are reduced to $57,655.

The letter indicated that the food store “has not met expectations” for the 2016 fiscal year.

The store would not be a viable operation on its own, but Palliser Plains has sustained it by means of patronage received from Federated Co-op, according to the update.

“Over the years the sales have not changed dramatically from one year to the other,” said Mike Sigouin, general manager of Palliser Plains Co-op.

The store has reported net losses each year between 2011 and 2016, and is projected to do the same in 2017.

Sigouin said the letter was intended to present a realistic summary of the situation to Craik customers.

“It wasn’t a threat,” he said, characterizing the message as, “These are the facts. Please consider supporting your Co-op food store.”

The letter includes a couple of calls to action, including the following: “Making the majority of your grocery purchases locally will enhance our viability, support local jobs and the economy in Craik.”

Sigouin said six people are employed at the Craik grocery store at present.

Employees recently agreed to a 32-hour workweek, according to the update, but costs continue to rise and margins are declining.

“Our team is providing the very best service they can at this point,” said Sigouin.

The store faces intense competition from stores in urban centres, which can also offer a wider selection of products. The letter acknowledges that the store struggles to maintain availability of some fresh products due to low sales.

The Co-op facility is Craik’s only grocery store. Davidson’s Co-op grocery store is the next closest, about a 20-minute drive.

Sigouin declined to speculate on the store’s immediate future, but said the company would continue to monitor market trends in the year to come.

“It’s a bit premature to predict anything at this point,” he said.

For the full story, please see the Feb. 20 edition of The Davidson Leader or call 306-567-2047 to subscribe today.