Facing lower sales following increasing pressure from competitors, the Tidal Creek Co-op said last Friday that difficult business conditions would likely force the food market to move from its Oleander Drive location to a new location in downtown Wilmington.
A public letter from the board of directors on Dec. 11 detailed several issues the co-op was facing, including new competitors, declining sales and a loss of available parking and greenspace.
The co-op announced in March it was considering a move to downtown, but recently the ownership of the unoccupied Cinema 6 property changed, resulting in a loss of use of the site’s additional parking. Tidal Creek will also lose access to greenspace by the co-op’s 8,000-foot location in a shopping plaza at 5329 Oleander Drive, the space it has occupied since 2002.
With these changes coming after Dec. 31, Tidal Creek said it had received positive reaction from its March proposal to move locations. The March announcement said it was possible the Oleander location could remain open, but the latest announcement said the parking changes would make conducting businesses at the current location even more difficult.
“Given the above conditions and after months of exhaustive research and debate, a move to downtown seems to represent our most compelling alternative,” the board wrote. “Despite being a disappointment for some who wish to see us remain at Oleander, we have had an overwhelmingly positive response from the community, the community leaders we have connected with, and most importantly, the ownership of Tidal Creek.”
From its opening in 1982, Tidal Creek offered local and organic food options long before stores like Trader Joe’s and Whole Foods capitalized on the growing trend. Those two specialty grocers are among the 15 grocers, all with natural foods offerings, that are located within four miles of the co-op.
The competition appears to be driving down the co-op’s revenues. The letter included a graphic that showed Tidal Creek’s sales had dropped from nearly $5.5 million in 2012 to around $3.75 million in 2015. Another problem the co-op’s board raised is access to the store, which requires sharp turns onto and off Oleander to reach, with a parking lot that’s difficult to manage.
However, downtown Wilmington offers the co-op the opportunity to relocate in an area bereft of grocery options. The U.S. Department of Agriculture has classified the downtown area as a “food desert,” reflecting the lack of grocery stores with healthy food options available to residents there.
“Downtown needs more food options, and we need downtown,” the board wrote in the letter. In its March message, the co-op described a downtown location as “an amazing opportunity to provide a service to the community.”
The board said it was working on a presentation to the city of Wilmington with the goal of forming a partnership with the city to encourage the co-op’s relocation.
Commercial Realtor and developer Gene Merritt said in May that Carolina Heights, Carolina Place, Forest Hills, the historic and mansion districts, Princess Place and other north side Wilmington neighborhoods could all benefit from closer access to fresh groceries. The closest store to downtown is a Food Lion at the intersection of Dawson Street and Oleander Drive.
A co-op operates as a locally owned organization where individuals can buy memberships that provide an ownership stake. It is operated by a board of directors. With its goal of keeping resources within the community, a co-op will buy more locally sourced goods, while also using profits for community services like educational programs and charitable donations. Only an estimated 5 percent of Tidal Creek members live near the store, with many members coming from as far away as Leland and Jacksonville to shop.
The co-op did not announce a time frame for any decision. The board encouraged its members to continue to shop at the co-op and renew their ownership.
“While this change will be hard, we feel entirely confident that this new chapter is actually an exciting opportunity,” the board wrote. “Together we can redefine what our co-op is and how we serve this awesome community, we just need your support to do it.”
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