The History of Tidal Creek Co-op

The Evolution of a Co-op – Ours!
by Hope Sutton, published in the Co-op Current Summer 2003

Tidal Creek began like many other food co-ops back in the 70′s, with a little bit of cooperation and a great deal of idealism. A small group of individuals with a desire to eat healthfully came together as a buying club in order to gain access to products that were not otherwise available in the then small town of Wilmington, North Carolina. Placing orders with Tree of Life and dividing up bulk amounts of whole grains, beans, rice, and other dry goods, they doggedly pursued natural food lifestyles and worked hard for their wholesale- priced groceries. Calling themselves the “Flat Country Co-op”, they were just taking the first baby steps toward living out the cooperative principles as they catered to a limited number of members and struggled with defining the rules for placing and picking up orders more than defining their philosophies.

At the same time, another entity in this same small town was also being called a co-op, this time “Wilmington Natural Foods Co-op”. In this case, a small storefront begun and owned by a single individual was functioning in part as a cooperative. Economic participation was mostly in the form of excellent prices were for those who were willing to volunteer time bagging up the bulk goods, keeping the shelves filled with products, and manning the tiny one-room store. But “membership” was open and a feeling of community had begun.

Eventually the buying club bought out the owner of the tiny natural food store. Naming the store for its location near one of the area’s tidal creeks, it became known as “Tidal Creek Foods, Inc.” Although it was incorporated as a non-profit member-owned corporation rather than a cooperative, democratic control and ownership were finally part of the picture and the co-op began functioning more like a true cooperative. Members began participating economically by paying annual dues to support the store financially, as they continued to earn substantial discounts for putting in hours manning the store during its hours of operation. Offerings were lean, mainly bulk dry goods and cheese, hours were limited, and members’ work hours were vital to the survival of the store, but the slow growth of the co-op had begun.

The next phase of Tidal Creek’s history is probably a familiar one to many other co-ops as well. Years passed as a small but content core group of members continued to work hard to maintain their access to whole natural foods at low cost, a choice that sometimes means the preservation of the short-term member benefit of low prices at the expense of capital improvements and planning toward the future. The small town of Wilmington experienced tremendous growth as the co-op struggled with its own growth process. The co-op was “open to the public” but its size, unconventional offerings, and funky atmosphere meant that it still mainly catered to shoppers already committed to the “alternative” natural food lifestyle. Nevertheless, sales and memberships both grew slowly and the co-op gradually put aside the resources to expand into two increasingly larger storefronts, staying in its last home, an old house of around 2400 total square feet (1340 in retail), for eleven years.

During these years there were many growing pains and ongoing debate about the direction and mission of the co-op. Occasionally a single voice has brought forth a revolutionary idea, sometimes to be tossed aside by established members fearing the loss of some ideology or damage to the heart and soul of the co-op, like the time a cooperation savvy member attempted to get the co-op membership to make the transition from an annual membership dues/discount system to the wiser equity and rebate system. (A change Tidal Creek has yet to complete.) Other times, small groups of members have gathered momentum to make some leap forward in practice or applied philosophy, only to lose steam again as individual members’ opinions were difficult to reconcile, such as the initial push of planning for expansion that began in 1991, but has only reached fruition in the recent expansion.

Defining and redefining itself over the years, the co-op has struggled with maintaining its sense of community and comfort while moving toward more professional business operations and a storefront presence more widely acceptable to the general public. Tidal Creek’s recent expansion has been undertaken with this combination of heartfelt idealism and careful professionalism always at its center. Every possible step was taken to ensure that wise business choices were being made: consultants were brought in for everything from the first market study and staff development trainings through kitchen design and department set-ups. At the same time, members have been included in the process through every step and kept as informed as possible through regular events and publications. This approach has hopefully resulted in a store that will serve the needs of the current members well, while opening the doors wide to a new audience of shoppers (dare we say members) who will no longer feel too intimidated to shop at the co-op.

On the business end of the story, the expansion itself went fairly smoothly. The decision was made to find a space that was approximately three times the old store’s size, but due to the high cost of property near the coast and the co-op’s lack of equity, purchasing was out of the question, so terms were negotiated with a development company for a build- to-situation with the Co-op as the anchor tenant. The lease negotiations were lengthy and difficult, taking many months, but working with the landlord and developer as a single entity simplified many aspects of the project, especially since the co-op could only afford a single GM to act as both the daily store manager and the expansion project manager. Because of this choice, the entire building construction, including organizing all subcontractors and labor, was the developer’s responsibility, while the GM oversaw all decisions and maintained close communication throughout the process. From ground breaking to opening day has taken eleven months.

The financing portion of the expansion is a story in cooperation as well as sound business practice. The total project budget is approximately $700,000. The construction budget was negotiated before construction began, including a cap on total costs. (The project is currently coming in around $10,000 under budget.) The co-op had $150,000 of its own to put toward the project, $80,000 came from member loans, $145,000 came in the form of upfit budget from the developer, and $235,000 came from a bank loan that was obtained with the assistance of the other Southeast CGA members in a revolutionary loan securing plan. Other portions of the budget are covered through free product and extended terms.

The ideological portion of the expansion is a work-in-progress, but if the many enthusiastic members who showed up to help with the move and the happy faces and positive comments of the first days of shopping in the new store can be used to predict the successful preservation of the prized sense of belonging, community, and comfort that is part of the defining character of co-ops, then Tidal Creek seems to have made the transition splendidly, although the channels of communication will remain open and the staff will continue actively seeking feedback from the membership regarding the changes that have been made.

Tidal Creek Co-op is thriving. Ever changing, continuously working to bridge the gap between the practical and the philosophical, maintaining the ideological center while remaining fiscally sound, serving the current membership while reaching out to the wider community to gain new members. So now shopping in a store that feels like a regular grocery store, complete with full-sized aisles and carts, while still buying bulk rice and tofu at great prices, and bumping into several friends along the way, can be an everyday occurrence in Wilmington. Recently the articles of incorporation were amended so that the co-op is now legally a cooperative corporation and every day brings new discussion about what it means to be a cooperative as well as opportunities to live out the cooperative principles more fully.