DENVER — The pioneering Choice Market, once considered the forerunner of the future of convenience stores, is out of business.
At its zenith, Choice had five full-size convenience stores and a scattering of mini automated markets and the plan was to go national. The appeal was fresh local food, prepared on-site, and an automated system of paying.
The downward spiral began with the pandemic that owner Mike Fogarty said hurt his operation and from which he never could fully recover. Then inflation dealt another blow and in May he closed all but one of his stores in what he hoped was a temporary measure while he awaited new financing. Two proposed investments fell through, leaving Fogarty no option, he said, but to close permanently this fall.
The stores were very popular with urbanites, but they were big — 3,000 to 5,000 square feet requiring too many employees. He might have made it but for the skyrocketing cost of goods and labor. In January an investor promised to infuse $1.5 million into the business, but that fizzled in April.
Fogarty filed for Chapter 11, hoping to reopen with only two full-size stores, focusing on the small format mini-markets. He reduced his labor force, relying more on technology, added some controls to purchasing that was more profitable, and operated with only two executives.
He believed new financing was in the works, but it never materialized.
Until 2017, Fogarty was in the pharmaceutical business. But he believed convenience stores had a promising future if they engaged in innovative structures, such as touchless shopping, using AI computer systems, and offering fresh food sourced from local farmers and cooked on site. Only one Choice Market location sold fuel.
"The past seven years have been the most challenging but rewarding of my life," Fogarty said. He still believes in the concepts of healthy choices and ease of purchase that he introduced, but thinks it will take more time and an improvement in the economy to work.
Two other experimental convenience stores opened in Denver in the last two years. One shut down within a year, citing high maintenance and the closure of nearby businesses whose employees had contributed to the profit.
The other, Little Bodega, which opened in 2023, is still going in a low-income neighborhood.
Although the store offers staples, it has filled a niche by selling a variety of goods catering to the local population that are not readily available elsewhere.
A steady stream of construction workers and tattoo parlor employees gave the store a good start.
DENVER — The convenience store business continues its rapid growth in this state, with new outlets popping up all over the place, to the dismay of some citizens.
"They're on every corner and the traffic is horrible," said one resident.
That's because the stores tend to go in where population growth is expected to be high.
One chain had to fight off a neighborhood push to stop its erection in south Colorado Springs. Some city governments are cracking down. Denver is even proposing a ban on new c-stores.
Others, as in the northern part of the state, are welcoming them.
Greeley is one. Circle K, 7-Eleven, Murphy USA, Maverik, and QuikTrip are all there. QuikTrip has eight new sites under construction, plans eight to ten more a year, and recently opened one in that city.
While the building of new stores is a hassle, with finding building sites to acquire, snafus in getting permits, and occasional resident complaints, chains have found a way around some of the problems by rebranding, such as Maverik did with Kum 'N' Go, or razing existing buildings to erect their own.
The largest enterprise, Bucc-ee's, opened a huge store on the former site of a gas station in Johnstown.
Love's Travel Stops are laying down a big footprint, the latest in Alamosa where a Maverik already is established. It encountered some opposition but prevailed.
There are nearly 2,000 convenience stores currently operating in Colorado.
DENVER — The Denver City Council is proposing a ban on sale of flavored tobacco. Two virtual community meetings have been held so far to assess the public's reaction.
If enacted, the ordinance would prohibit the sale of all fruit and candy flavored e-cigarettes, menthol tobacco, chews, and pouches. It would take effect in 2026.
Councilmember Serena Gonzales-Gutierrez, who is backing the proposal, said she had first-hand experience as to the harm it causes from having been addicted herself.
"For me, this is a no-brainer," she said.
Another sponsor of the measure, Shontel Lewis, claimed, "The tobacco industry knows that those are starter products that kids like and they get hooked on tobacco at a very young age, creating lasting addictions and lifetimes of health issues." She is an ex-smoker of mint-flavored tobacco. She said she loved mint.
Darrell Watson, also a council member, believes flavored tobacco disproportionately impacts African-Americans.
Proponents of the ban cite some statistics that suggest nine percent of Colorado and seven percent of Denver high school students use e-cigarettes.
Others in favor of a ban claim the tobacco industry has also targeted the LGBTQ community and women.
Grier Bailey, executive director of the Colorado-Wyoming Petroleum and Convenience Store Marketing Association, counters the argument that youth are targeted, saying that many flavored products are marketed mostly to adults. He also said, "The presence of flavors themselves aren't necessarily the problem. It's how they are marketed."
COMMERCE CITY — Club Car Wash opened a new location here as it quickly expands after entering the state's wash market in July.
To celebrate, the chain offered $1 washes, donating all the proceeds to the Children's Hospital.
COLORADO SPRINGS — Barefoot and in pajamas, a 3-year-old boy walked into a convenience store at 2 a.m.
The child told police his mama and daddy were gone and he was scared so he walked to the nearest place where he thought he could get help. He did.
Police contacted nearby neighbors but could not locate his parents, so they turned him over to Health and Human Services.
But all turned out well. It seemed his parents had thought he was settled down with a caretaker for the night. He was returned home and no charges were filed.
DENVER — Gasoline prices in Colorado were headed down at the start of November.
The average cost of unleaded was $3.10, one cent below the national price.
The highest street price in the state was in Glenwood Springs at $3.54. Greeley posted the lowest at $2.92. Colorado Springs stood at $2.95, down 44 cents from a year ago at the same time.
Other prices around the state were $3.34 in Pueblo, $3.17 in Boulder, and $3.15 in Grand Junction.
Originally published in the December 2024 issue of the O&A
Marketing News.
© KAL Publications Inc. 2024