Country Market closing

ROCK FALLS – Three years ago, Rock Island-based Country Market was doing so well that it invested $1.1 million to renovate a 32,000-square-foot former grocery store along busy First Avenue.

The Rock Falls Country Market opened with 90 employees, and its first 2 weeks of sales “were incredible.” The owners thought they would average to 9,000 to 10,000 customers a week, store manager Terry Shouse said.

Then things fell apart.

In 2007, the store cut staff in half; today there are 25 workers, said Shouse, who hasn’t hired anyone in 8 months. Hours have been cut and inventory has dwindled.

Now Country Market is leaving town, after inking a deal Thursday with Save-A-Lot, which will lease the building and move in early next year, officials confirmed Friday.

“Sales weren’t what we thought they would be,” Dave Tennant, Country Market’s president and CEO, said Friday. “Every year we’ve been there, we’ve never made a dime of profit.”

Eagle Market, the grocer there before Country Market, averaged 10,000 customers a week when it ran strong; it closed in October 2003.

Country Market averaged 5,300 customers a week and had a high of 6,000 in 1 week, Shouse said.

“We didn’t expect it to drop like it did,” Shouse said.

The small family chain had to compete with larger chains that offer lower prices, and “it’s hard to be competitive in that kind of market,” Shouse said.

Country Market, which also has stores in Aledo and Rock Island, plans to open a new store in Geneseo.

“While the decision is difficult, given the impact on associates and customers, it will ultimately allow us to operate our other locations more efficiently and effectively in what has become a highly competitive retail environment,” Tennant said.

Save-A-Lot will begin its renovations in November. Cost has not been determined.

“We have to get in there and determine how it all works with our concept,” said Gerry Kettler, director of consumer affairs for Niemann Foods. Inc.

Niemann, based in Quincy, owns a nearby 10,000-square-foot Sav-A-Lot, which opened at 1000 First Ave., in December 1996. Niemann also owns County Market stores in Sterling and Dixon.

Save-A-Lot, which is a discount grocery store, will take up 17,000 square feet of the building at 928 First Ave.; the rest will remain available for lease.

“The added space will help Save-A-Lot increase variety in all areas of the store to better serve our current customers, while providing former Country Market customers with a tremendous value for their food needs,” Kettler said.

Kettler does not expect any competitive issues between the sister stores.

“It’s two different types of grocery stores,” Kettler said.

“We’re already there, and the two stores complement each other.”