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Rural Towns Go Shopping for Community Stores

March 14, 2004|Becky Bohrer, Associated Press Writer

POWELL, Wyo. — When this rural town's clothing store closed, residents like Ken Witzeling put up money to start a shop, ensuring that they wouldn't have to leave Powell to buy a dress shirt for work or trendy jeans for school.

Hundreds of people bought shares in the business, believing that they were investing in more than just a clothing store.


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"We sold this as, 'You're investing in Powell,' " said Witzeling, a retired pharmacist and member of the board that oversees Powell Mercantile.

Community mercantile stores are slowly appearing in other parts of the West, where communities with small populations and uncertain economic futures struggle to attract new businesses, and where shopping centers are often a long drive away.

People in Ely, Nev., plan to sell shares in their own community mercantile, and leaders of such stores in Montana and Wyoming say they field calls from people around the country interested in the idea. Residents of communities in at least two states in the Northeast also are discussing the potential for mercs there.

"There certainly appears to be a growing interest," said Stacy Mitchell, a senior researcher with the Minneapolis-based Institute for Local Self-Reliance. "Nationally, I think you're seeing a greater desire and concern to shop locally."

That level of interest "tells me our communities are trying -- themselves -- to make themselves successful. There is a lot of community spirit in our rural areas," said Frank French, general manager of an implement dealership in Plentywood, Mont., who helped develop the community mercantile idea in early 1999 with Dr. Kirk Stoner.

The idea, he said, was born of necessity: The Stage department store in Plentywood was closing and residents feared that the northeast Montana town would lose more than a clothing store if nothing similar took its place.

Among the worries: Residents who left town to shop would buy their groceries, fill their prescriptions and see doctors elsewhere as well.

"We'd begin losing a tremendous part of market share," French said.

A limited liability corporation was formed and shares were sold at $10,000 apiece to raise $200,000 to start the merc. Later that year, Little Muddy Dry Goods opened.

Since then, similar stores have opened in Malta and Glendive in Montana and in Powell and Worland in Wyoming, although shares have sold for far less, generally $500 each. Boards of directors oversee the businesses; store managers deal with daily operations.

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