LISC Funds MERC Co+op to Help Nourish Kansas City, KS Communities
MERC Co+op is not your traditional grocery store, and it is the only co-op grocery store in Northeast Kansas. What sets this co-op apart from others is its strong connection to the local community. MERC, which is a nickname coined from Community Mercantile, is an independent grocery store owned and operated by community members. The store provides affordable and healthy food options to low-income residents while ensuring livable wages for its workers, positioning itself as a high-quality and community-focused grocer.
Originally started in Lawrence, Kansas in 1974, the company opened its second location during COVID-19 in Kansas City after the Unified Government of Wyandotte County Director of Economic Development recognized the need for a MERC Co+op store in Kansas City, KS. This collaboration made the expansion possible.
Rita York Hennecke is the longest-serving general manager in the co-op's history and advocates for economic, cultural, and social development and equity.
“The success of the collaboration between MERC Co+op and the Unified Government can be attributed to a shared goal,” Hennecke said. “MERC Co+op desired to open a second location, but lacked the necessary funds, while the Unified Government needed an operator for a new grocery store in Kansas City.”
LISC Kansas City played a crucial role in this collaboration by providing low-cost capital to complete the financing of the project. Access to the Healthy Food Financing Initiative funding and the purchase of $1.42 million in General Obligation Bonds issued by the Unified Government further supported this endeavor. With the grants, MERC Co+op was able to hire an outreach coordinator to engage with the Kansas City community.
“People aren't familiar with co-ops, and there are not a lot of co-ops in this part of the country,” Hennecke said. “To overcome that, outreach and word of mouth contribute to the volume, which is the key to the long-term success of having a grocery store here.”
MERC Co+op encourages community participation by allowing residents to become co-op owners. When you become an owner, you become a member of both Lawrence and Kansas City stores. Overall, MERC Co+op has over 9,000 owners, and there are numerous benefits to becoming a member.
Ownership is as easy as signing up online or in person. For those who don’t have access to the internet, pamphlets are available at the check-out counters with more information. Shoppers pay a $75 equity investment to join and if a member no longer wishes to be an owner, they can redeem that share and get the full $75 back. For customers using an Electronic Benefit Transfer (EBT) or a Women, Infants, and Children (WIC) card, the ownership fee is reduced to $10, while still providing all the benefits; plus the customer receives an extra 10% discount on fresh food products such as meat and dairy. Up to 25% of MERC Co+up's sales come from residents paying with EBT or WIC cards.
Additionally, members who are also employees working more than 30 hours a week receive health, vision, dental and life insurance, as well as 401(k) plans with a 3% organization match.
“As a co-op, we're not driven solely by profits, and our shareholders are community members,” Hennecke said. “At the end of each year, we report to our community members what our earnings are, and, if there is extra income, we pay that back to our members.”
Beyond its role as a grocery store, MERC Co+op is committed to giving back to other community-based organizations as part of its mission to provide a healthy lifestyle for Kansas City residents. It offers a free classroom and kitchen that nearby organizations can use as a multifunctional space for community meetings, cooking classes, yoga sessions and more.
The store also has a round-up program at registers, allowing customers to make donations to support various local organizations. They additionally provide water and fresh food products for public events organized by these community-focused entities.
“Part of our DNA is community partnerships,” Hennecke said. “The more we have community engagement, the stronger the community is and the more resilient we are as the grocery co-op.”
MERC Co+op still has leftover funding from the Healthy Food Financing Initiative grant and intends to hire a new marketing director to continue spreading awareness of the grocery store and its generous and charitable initiatives.
MERC Co+op not only offers the best grocery prices in the area and provides accessible and healthy food options to Lawrence and Kansas City, but the staff also has taken the necessary steps to ensure that customers feel safe, valued and represented. If you are interested in becoming an owner of a MERC Co+op store, please visit their website at https://www.themerc.coop/ to learn more.