The Merc Co-op will close its Kansas City, Kansas location December 30, ending a five-year effort to bring fresh food to downtown residents who lived in a food desert for decades.
The cooperative grocery store at 501 Minnesota Ave notified the Unified Government June 30 that the Merc would “terminate its operating agreement.” The closure affects 12 employees and threatens to return downtown KCK to food desert status unless another grocer takes its place.
Management cited poor financial performance as the reason for closing the 14,000-square-foot store that cost taxpayers $7.2 million to build.
“This decision is based on what’s best for the long-term viability of the co-op and the location’s financial performance,” said Laura Marsh, The Merc’s Marketing Director.
The store opened in July 2020 after three years of planning to address critical food access needs. Residents previously shopped at dollar stores that lack fresh produce and healthier food options.
The Unified Government invested around $7 million from hotel taxes and other sources to build and equip the store. Financing included $3.2 million from hotel revenue, $1.6 million from tax increment financing, and $1.42 million in bonds.
Planners expected traffic at the Merc to be buoyed when a proposed housing development brought 85 to 100 apartments to the former Reardon Convention Center site across the street. After years of extensions in the project’s development agreement, thet $25 million housing project died in February when developer Willie Lanier Jr. missed the final construction commence deadline.
The store also battled a growing homeless population downtown and shoplifting losses that hurt profits.
The Merc focused on organic and locally sourced products. Thirty percent of offerings came from more than 200 local producers, including 13% from minority-owned and 11% from Black-owned businesses.
The unique cooperative model let community members buy $75 shares for voting rights and year-end rebates. The store had more than 8,000 ‘owners’ from Lawrence and KCK.
At opening, 66% of staff were Black, Indigenous or people of color. Eighty percent of supervisors came from these communities, and 86% of all staff were KCK residents. Management says they plan to help its dozen current KCK employees transition to its Lawrence location or find other work.
“We’re committed to exploring every opportunity to transition these dedicated employees,” said Marsh.
The store operates through December 30. The Lawrence location—open for 47 years— remains unaffected.
The downtown grocery store’s demise adds to a string of development misfires in the area. The Minnesota Avenue Triangle Project, a $145 million mixed-use development, also collapsed last year when developers cited funding gaps.
These setbacks underscore the challenges facing downtown KCK as city leaders work to revitalize the area and attract sustainable businesses that serve the community’s needs.
