Several rural communities across North Dakota are strategizing how to slow the pace of local grocery stores shutting down.

Some are making use of state grant money to aid their efforts, but challenges remain.

In North Dakota’s Walsh County, the Rural Access Distribution Cooperative has been on the leading edge of establishing local grocery store co-ops, in which a handful of smaller shops buy items in bulk together.

The initiative was eventually awarded a state grant to buy a bigger truck and van, making supply deliveries more manageable.

Cooperative President Alexander Bata said they continue to see progress with increased sales, and better options for area residents.

“So, there’s less waste, less cost,” said Bata, “and we’ve significantly improved the quality of food.”

However, other elements of the initiative still face hurdles.

That includes utilizing food lockers, where customers can buy their food online and pick it up when they choose. But Bata said they haven’t been able to make the technology work.

In 2023, the Legislature approved $1 million for interested communities to sustain grocery service in smaller towns with limited access.

The town of Milnor, with a population of around 600, was one of the early grantees and used its money for a feasibility study.

Milnor’s Community Economic Development Coordinator Carol Peterson said those findings were clear – their lone grocery store needs more storage space to stay afloat.

“It makes it very hard,” Peterson said, “to order in enough product to service the community.”

That limits the store from keeping prices lower.

Peterson said she worries more customers will then look at far away options, taking their tax dollars with them. While local leaders did get a read on what’s needed, they haven’t been able to secure additional funding for the next phase.

A key legislative sponsor of the pilot grant program says there’s interest in extending it next session, but she’s still gathering feedback.