Pioneer Marketplace Foods in Bemidji Announces Store Closure Amidst Evolving Retail Landscape

BEMIDJI — Shoppers at Westridge Shopping Center will soon notice a significant change as Marketplace Foods has announced the closure of its Bemidji location on August 21. This announcement from Marketplace Foods signals a shift in the local grocery retail scene, marking the end of an era for this particular Pioneer Marketplace in the community.

Johanneson’s Inc., the parent company of Marketplace Foods, cited the increasingly competitive grocery and retail environment as the primary factor behind this difficult decision. “In recent years, the increasingly competitive grocery and retail environment has created numerous challenges for many businesses, including ours here in Bemidji,” the company stated in a public release. “In the best interests of our community, and our employee-owned company, we have decided to close Bemidji grocery operations.”

To mitigate the impact of this closure on its workforce, Marketplace Foods has coordinated with Lueken’s Village Foods. An agreement is in place for Lueken’s to interview all Marketplace Foods employees for potential job openings at their two Bemidji stores. Craig Little, President of Lueken’s, affirmed this commitment, stating, “Human resources will be working with the Marketplace Foods team to try to help any of their current employees fill our open roles. Our top priority is to help keep as many people employed in Bemidji as we can.”

While the grocery store will close its doors, Johanneson’s Inc. will continue to manage the Westridge Shopping Center and the Westridge Commerce building. Lueken’s Village Foods will become a tenant, taking over operations of the Shell gas station located within the shopping center. Thrifty White Drug will also remain open, ensuring continued service for pharmacy needs in the area. However, Office Max is set to close its store in the center on September 14, further contributing to the evolving tenant mix at Westridge.

Lueken’s has plans to rebrand the existing convenience store space into “Lueken’s Food & Fuel,” emphasizing a smaller format convenience offering. This revamped store will undergo renovations and updates to better serve customers seeking quick and convenient food options. “We’re going to have soups, sandwiches, salads and our donuts, all the things we have at Lueken’s, just on a smaller scale,” Little explained, highlighting the adapted concept for the location.

In a strategic move to optimize resources, Lueken’s will also purchase equipment from the closing pioneer marketplace location to facilitate renovations at its Wahpeton, N.D., store and to implement upgrades at its North Bemidji location. This investment signals Lueken’s commitment to strengthening its position in the regional market.

Johanneson’s Inc. also outlined plans for the future of the Westridge Shopping Center, stating, “We will also be working on expanding the operation of the Westridge Shopping Center with new nationally established tenants.” This expansion initiative aims to enhance the shopping center’s appeal and provide Bemidji residents with a more diverse retail experience closer to home, reducing the need to travel to larger cities for shopping.

Johanneson’s will maintain its corporate headquarters in Bemidji, overseeing its portfolio of 21 retail operations across North Dakota, Minnesota, and Wisconsin. This continued presence underscores the company’s long-term commitment to the Bemidji community, even as the retail landscape shifts.

“We believe these changes will strengthen both Johannesons’ operations and Lueken’s here in Bemidji,” the release added, emphasizing a positive outlook despite the store closure. “Johanneson’s Inc. has been a part of and will continue to be a part of the Bemidji community for years to come.”

Keith Johanneson, representing the family legacy of Johanneson’s Inc., whose father John established the first Bemidji grocery store in 1956, attributed the closure to the significant transformations within the grocery business.

“The dynamics of the grocery business is radically changing,” Johanneson explained. He noted the increased competition from major retailers such as Walmart, Target, Aldi, Menards, Walgreens, and various convenience stores, which has saturated the Bemidji market.

Johanneson further elaborated that this market saturation prompted a strategic reassessment of their business model in Bemidji. “We decided that our business model for the future was not going to be successful, so we just decided to transition the whole building into a strip shopping center,” he stated. He envisions the redeveloped Westridge Shopping Center as a premier retail destination in Bemidji, anchored by Target and complemented by new national tenants.

Lueken’s Village Foods anticipates that hiring displaced Marketplace Foods employees will address their ongoing staffing needs and enhance customer service. “It is absolutely going to be great for us and the service we want to provide to our customers by bringing more team members in,” Little commented. “We’ve felt like we’ve been short staffed for a long time now and it’s been really tough to keep employees. So the opportunity to welcome some Marketplace employees is very exciting for us.”

An inventory reduction sale commenced on Friday, August 9, leading up to the store’s final closing date on August 21. Sale details and discounted prices are being advertised in the Bemidji Pioneer and BuyLine, informing the community of the savings available during this transition period at the pioneer marketplace location.

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