This is our latest quarterly financial update for Seward Co-op employees and owners.

In the March update, we noted that sales growth at Seward Co-op, and among co-ops nationally, had slowed during 2025. That trend has continued into 2026, and it appears to reflect broader conditions across the grocery industry. At Seward Co-op, recent local challenges created by federal immigration actions have added to that pressure: from Jan. through May, our year-over-year sales growth was 1%, compared with 5% during the same period last year. Through the first three quarters of this fiscal year, we have posted a loss of about $160,000. Even if sales are strong in the final quarter, we still expect to end the year with a modest loss. These results reflect the challenge of operating in an intensely competitive grocery market . Over the past 10 years, the co-op has been profitable in only one year that was not supported by pandemic stimulus or a federal debt-forgiveness financing program.

In this context, operating more efficiently is essential to being a sustainable business. The word “efficiency” can bring up complicated feelings, especially given how large corporations often behave. As costs continue to rise faster than sales, we are seeking efficiencies while recognizing that many of our human-centric cooperative practices are inherently labor intensive. Scratch cooking in our Deli departments and artisan meat butchering require significant staff time. And while large conventional grocery chains may rely on just one or two suppliers, often tied to a parent company, Seward Co-op maintains relationships with hundreds of vendors, including dozens of small-scale local producers. To keep doing those things, we must find efficiencies where we can. One example is self-checkout. Although it has drawn some criticism, it has become a popular option, and we’ve seen use increasing at both stores. It helps us keep both traditional registers and self-checkouts staffed from open to close each day, while creating efficiencies that support other parts of the co-op that are fundamental to our identity.

One new way we are expanding access and convenience while keeping an eye on efficiency is grocery delivery. In 2024, we ended the “Seward Co-op To Go” program, which enabled customers to order on our website and pick up their orders at the stores. The visibility of the online store was very limited, and as a result, the sales were low while the cost to maintain program infrastructure and fulfill orders was high. In April, we launched an Instacart storefront and, in late June, we plan to go live with DoorDash. Both services have high visibility and provide full order-to-delivery service, which frees up our staff to focus on store operations. You can learn more about delivery options here.

The sale of the Creamery in early 2025 provided a one-time influx of cash. Despite the challenges described above, we have maintained that stronger cash position, which is important for several reasons, including our ability to repay owner loans. About $1.5 million in loans will mature over the next three years. Many of these loans were made in 2014 to help finance construction of the Friendship store, and they have been extended multiple times. A major focus of our financial planning is to repay these loans as they mature while maintaining a cash balance that supports the stability and sustainability of the business.

Last Oct., co-op owners approved a bylaw change that raised the cost of Class A stock from $75 to $99. Nearly 90% of voters supported the change, showing strong support from our owner community. Since it took effect on Jan. 1, we have encouraged owners to make the additional $24 payment in store or online in the owner portal. So far, 1,700 owners—about 10% of our active ownership—have done so. With our fiscal year ending on June 30, we would love to see that number double or even triple. If you have not yet made your additional payment, you can do so at checkout in either store or on our website. Your payments make a positive impact on our cash position.

We are operating in complicated times, and the rising cost of everyday living is regular front-page news that affects us all. We appreciate—and depend on—the support of people who shop with their values at their community-owned grocery cooperative. Right now, both stores are filled with starter plants, offering a beautiful preview of the local growing season soon to be in full swing. Stop in and bring home something for dinner and something for the garden. We look forward to nourishing and growing with our cooperative community together in the next fiscal year. Thank you for your commitment to Seward Community Co-op.

In cooperation, 
Alex Betzenheimer, Operations and Finance Director