STATE-RUN GROCERY STORES: COMPETING FOR COLORADO FAMILIES
Growing up hungry in the projects, I know what it means when food costs spiral out of control. Eggs and milk are almost at gold prices. We’ll create state-run grocery stores to compete with big chains, but our prices will be lower and our food comes directly from Colorado farmers and local businesses who can’t get their products into King Soopers.
We’ll start in rural communities (then expand to metro Denver) where families drive over an hour just to reach a Walmart. Soon-to-expire items get donated to food banks and homeless shelters – creating a complete ecosystem of food security.
COMPLETE IMPLEMENTATION PLAN:
Phase 1: Rural Pilot Program (5 stores) – $25 Million Startup
- Store Size: 15,000-25,000 sq ft each
- Initial Inventory: $8 million
- Equipment/Fixtures: $12 million
- Staff Training: $2 million
- Marketing/Branding: $3 million
Competitive Pricing Strategy:
- Fresh Produce: 25-35% below Walmart/King Soopers
- Local Products: Colorado-made goods at cost + 10%
- Staples (milk, eggs, bread): At-cost pricing
- Organic Options: 40-50% below Whole Foods pricing
Cost Advantages:
- Direct from Farmers: Eliminate 3-4 middleman markups (30-40% savings)
- No Shareholder Profits: Reinvest all profits into lower prices
- Bulk Purchasing Power: State-negotiated contracts with suppliers
- Reduced Marketing Costs: No expensive advertising campaigns
Colorado Farmer Network:
- Direct Contracts: 500+ Colorado farms contracted for produce
- Processing Centers: 3 regional distribution hubs
- Transportation: State-operated delivery trucks
- Quality Standards: Organic/sustainable preferred, fair wages required
Financial Model:
- Break-Even Timeline: 18 months per store
- Profit Reinvestment: 60% into lower prices, 25% expansion, 15% reserves
Food Waste Program:
- Near-Expiration Donations: All soon-to-expire food to food banks
- Imperfect Produce: 50% discount section
- Composting Program: Organic waste to Colorado farmers
