Gem City Market is not sustainable. Supporters say shoppers can change that

The Gem City Market at 324 Salem Ave. in northwest Dayton. CORNELIUS FROLIK / STAFF

The Gem City Market at 324 Salem Ave. in northwest Dayton. CORNELIUS FROLIK / STAFF

Gem City Market, a community-owned, full-service grocery store that brought fresh food to a food desert in northwest Dayton, originally hoped to break even around its four-year anniversary.

That anniversary is coming up in May of next year, but the market’s current sales are not “sustainable” and must improve if the store is going to make it to its fourth birthday and remain open.

Market supporters said they believe the community will step up to ensure the store does not fail and becomes profitable.

“We are confident the market can still get to break-even and eventually profit, but right now sales are not at a level where we’ll get there before we run out of cash reserves, so we need to both increase our sales and raise a runway to get us there,” said Lela Klein, a board member of Gem City Market and a former staff member with Co-op Dayton.

Gem City Market meat manager and butcher, Adrian Harris stocks the shelves Thursday morning September 21, 2023. JIM NOELKER/STAFF

Credit: JIM NOELKER

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Credit: JIM NOELKER

The Gem City Market is just the latest local business to ask the public for help and support because of financial challenges.

Multiple bars, restaurants, boutiques and other kinds of stores in the Dayton area have spoken up to warn that they might have to shut their doors if foot traffic and sales do not increase.

A critical time

Late last month, the Gem City Market sent out an email to its more than 5,400 owners that says it is at a critical juncture.

“We’re going to be straight with you: if we don’t step up for our co-op right now, the Gem City Market may not be sustainable,” the email states.

The market, which is owned by community members who buy memberships, said it has faced significant adversity since it opened in May 2021.

Gem City Market stocker, Antonio Irvin stocks shelves Thursday morning September 21, 2023. JIM NOELKER/STAFF

Credit: JIM NOELKER

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Credit: JIM NOELKER

COVID and the economic fallout from the pandemic caused considerable hardship. Also, the reconstruction of Salem Avenue made it tricky for people and vehicles to get to the store.

The market also has had to cope with inflation and high prices and costs.

During the recovery from the COVID pandemic, food costs shot up 28%, Klein said, and being a small store, the market had a harder time absorbing those increases.

“That meant that even while our prices went up, our margins were sometimes too low, and we were losing too much money month to month,” she said.

The market switched wholesalers in 2023 to get better prices, but that transition was bumpy, and led to months of emptier shelves, Klein said.

Food shelves at the Gem City Market on Salem Ave. are stocked Thursday February 9, 2023. JIM NOELKER/STAFF

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Credit: JIM NOELKER

Recently, the market on average been serving about 2,150 to 2,200 people per week, which is down from a high of about 2,900 people.

Klein said the market needs to get back to an average of 2,800 customers per week in the next year.

The average sales transaction at the store is about $18.50, and Klein said that needs to increase to about $25 per transaction.

“That would get us to $70,000 per week, which would be a sustainable level of sales,” she said. “One way to look at it is that if just over half of our 5,400 members spent $25 per week at the market, we’d be sustainable.”

The market in the next few months hopes to add 500 new customers. Supporters plan to do this by communicating with members and neighborhood associations and by reaching out to the community to encourage people to shop at the store.

Klein said the market is working to make sure it is stocking the right items and is proving a high-quality in-store experience that makes people want to come back.

“If sales don’t get to a sustainable level, we will have no choice but to close the market,” she said. “It doesn’t have to happen all at once. Our goal is by February, we want to see 2,600 shoppers per week. We feel confident and well positioned to do this, but we absolutely need to make progress in the next couple of months to avoid closure.”

Some community members say after some rough times the market is now delivering on its promises.

Amanda Korb, a resident of Dayton’s South Park neighborhood, said she bought a membership to the Gem City Market when it was first starting up.

Korb liked the idea of the market and supported its mission, but she didn’t really shop there because she lives a few blocks from the Kroger on Wayne Avenue.

But Korb earlier this year learned that the market was asking for help to increase sales. She decided to start shopping there.

At first, it was not a good experience. Korb said there were bare shelves high prices and odd high-end products and missing items.

Gem City Market at night on Wednesday, Dec. 4, 2024. CORNELIUS FROLIK / STAFF

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But she said things have turned around and there are full shelves, better prices and more practical items.

She said its meat prices are competitive, its fruit and vegetable selection is solid and the store has the best deli cookies in town.

“I really hope people in the neighborhood will try them again,” she said. “I think they are turning the page and deserve the support.”

Market supporters have been posting messages on social media encouraging people to swing by the store to grab lunch and spread the word about what it has to offer.

“Start your shopping here, even if you finish elsewhere,” said Erica Fields, a board member with the Gem City Market, in a post on Facebook this week. “Together, we can secure the future of our market.”

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