In smaller communities, convenience-store succession stories have a familiar ring: Long-time owner opts to sell the retail business and retire. Local entrepreneurs or family members move to acquire the unit with a plan to maintain the store’s history while investing in new, contemporary updates.
This summer, Tower, Minnesota’s lone convenience store, Vermilion Fuel & Food, took on new ownership that included a new store name—Odegaard’s Lake Vermilion—but more importantly, the succession includes ambitious expansion plans to stay relevant to the community.
Odegaard’s Lake Vermilion is located in the northeast part of the state, close to Duluth and Lake Superior and part of the iron ore-rich Vermilion Range. The Marathon-branded location sells groceries, drinks, snacks, live bait, tackle, hunting/fishing licenses and more.
“We have a lot of ideas,” said new proprietor Lars Odegaard, who took over along with business partner Matt Gourde, who lives in Fargo, North Dakota, but is spending the working week in Tower to oversee store operations. “With all the changes we’re planning, we decided to change the store’s name.”
Odegaard added that the reception in town “has been warm and friendly” to the ownership conversion after long-time owner Terry Wagoner sold the business.
“The staff has been busy making connections in the community and have been asking what people would like to see added, listening to suggestions,” said Odegaard, who also owns three convenience stores in Detroit Lakes, Minnesota, about 200 miles southwest of Tower.
For example, the company posted on Facebook in August asking local residents to chime in about everything from new products to be integrated into the planogram to ideas about a subsequent store remodel initiative.
“We are gearing up for a big remodel and as we plan and dream, we’d love to hear from the people who matter,” the owners posted. “What are some of your favorite products, treats or must-haves that you’d love to see us stock? Is there a special brand, a type of food, or anything unique you wish you could find locally?”
One Facebook commenter asked for more fresh foods, and the owners responded in kind, stating: “We are hoping to make fresh muffins and sell in singles along with some banana bread some fresh bars and cookies.”
Capitalizing on opportunity
Odegaard and Gourde learned that Wagoner was looking to sell Vermilion Fuel and Food, known locally as F & F. After performing their due diligence on the store and its track record, the partners moved ahead with acquisition plans.
“Terry was ready to sell and enjoy retirement,” said Gourde. “Lars and I had been looking at other stores to acquire, but the availability of this one came up quickly earlier this year.”
Part of the retail game plan includes experimenting with new food options, both hot and cold.
“Our ideas include expanding the ice cream selection to 28 flavors, more cold drinks, sandwiches, take-and-bake pizza, breakfast sandwiches, fried foods and burgers. I ask people on a daily basis, ‘You’ve lived here forever, what would you like added to the store?’” said Gourde, adding that a fountain drink program is also on the agenda.
In the summer, the owners added new refrigeration units to house fresh products. As part of the strategy to infuse a greater selection, the store’s existing soda and other beverage suppliers have an opportunity to bring in a larger array of their respective brand flavors, and there will be activation of drink specials too.
In November, the new owners were rearranging shelving for a more walkable floorplan, conducting inventory, adding new snack items and coffee bar area. “We will be keeping and expanding the fishing supplies, bait and sporting goods area,” he said, “as well as remodeling bathrooms.”
On the agenda at Odegaard’s Lake Vermilion is new flooring and fresh paint, adding entrances to provide greater convenience for customers and a free air station outside.
“It’s an older building and will take about a year to get it where we want it,” said Gourde about the 5,000-square-foot store. “I’ve worked for years in construction. We are basically gutting the whole store, which is remaining open while construction takes place.”
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