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Fresh off the news that the Greene Hill Food Co-Op signed its lease at 18-24 Putnam Avenue, Fortune takes a look at “the rise of the grocery co-op,” focusing specifically on the Park Slope location. The PSFC is the largest consumer-owned co-op by sales in the United States, raking in $39.4 million dollars (or $6,500 per square foot) last year. The reason for success and the big savings? Inventory based on customer demand, requiring all members to work at the store and only allowing members to shop, and a limited selection of items within a small store footprint. And while the article says competing grocery stores have brushed off the PSFC as a one-time success story, it also notes that 200 co-ops are currently in start-up mode. That’s the largest number since the 70s!
The Rise of the Grocery Store Co-Op [Fortune]
Photo by nancyscola


What's Your Take? Leave a Comment

  1. You do have a point, Heather. We could order Fresh Direct and have no worries about the location of our grocery store. Great for, say, deliveries of soda water. But I have ordered FD on two occasions and never been very happy about the quality of anything. Everything tastes wooden and unripe, whether it’s cheese or produce.

  2. And omg, Dirty Hipster, after years of drving by, we finally got takeout at Fette Sau. Wow, is that place fantastic — and well priced. Dave, I think even you would be impressed — just cover your eyes and you won’t notice the hipsters on your way in.

  3. The coop does sell pork chops!

    No matter where I’ve lived, including Carroll Gardens, I’ve had to travel too far for groceries. I would love to live two doors from Citarella & would be extra happier if they had organic & I could work a shift and pay half.

  4. Also–for me–the absurdity of some members is an attraction. I have some great stories to tell.

    Tops was the woman in front of me who took off all the labels on her **METAL** cans so they could be scanned without “irradiating” her food. She probably screams on the street at anyone who comes within three feet of her with a cell phone.

  5. Rob,

    I basically buy for myself and waste very little. That being said, I used to live 6 blocks from the Co-op and before that was just down the street. It’s not a warehouse store–“bulk” in this case means you scoop what you need out of a bin (at BJ’s, “bulk” means you have to buy a pallet of toilet paper).

    I just moved to Boerum Hill and may try buying more at once (although them there’s the question of how far I want to walk/bus with stuff). There are many people who buy a huge amount at once and take a car service back home–that does require a lot of product to justify the transportation cost.

    Regarding the orange safety vests–that’s just for those whose work assignment is to accompany the carts to return them to the Co-op afterward.

    The cost savings add up–especially for produce and vitamins–even for a single person. I’ve often seen the organic produce at a lower price than the grocery stores sell NON-organic produce. And most of the produce is grown within 500 miles of NYC. I’ve comparison shopped at the GAP Green Market and–unless I am dying for a just-picked apple–the prices at the co-op are WAY lower.

  6. Like most things in life, the PSFC ain’t perfect. But I’m willing to put aside my petty personal grievances and do my once-a-month shift because the benefits are worth it to me. I guess the idea that guests are required to have a “guest pass” is way over the tolerable threshold for some people, but somehow I persevere. I’m mostly glad the the business model has been a shining and enviable success in a society that doesn’t typically reward such enterprises.