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Small Okanagan community may lose its only grocery store

Dahlia and Derek Millington are the owners of Little Falls Foods in Okanagan Falls.

Dahlia and Derek Millington are left wondering what else they can do to get more people to shop at their little grocery store in Okanagan Falls.

When they opened the doors to Little Falls Foods in June of this year, they felt like their business would make life easier for many locals, as the community had been without a grocery store since the IGA closed in September 2019. In the meantime, the closest grocery stores were in Penticton and Oliver.

But since their launch five months ago, the Millingtons are only averaging about half as much in sales as they need to survive.

"The people are not coming in in droves," said Dahlia.

READ MORE: Get ready to pay more for milk as dairy commission recommends big increase at farm gate

Since large corporations have much more buying power than Little Falls Foods, Walmart will sometimes have products on sale for less than what the small grocer is purchasing them for in bulk. Dahlia, who felt like she was setting fair prices, said she was upset to read comments suggesting that she was price-gouging.

In many instances the family sells products at a loss to try remain competitive and to avoid waste.

They cater to special requests and bring in new products for those who ask. But sometimes they buy an entire case of something to sell just one unit.

Dahlia and Derek Millington are the owners of Little Falls Foods in Okanagan Falls.
Dahlia and Derek Millington are the owners of Little Falls Foods in Okanagan Falls.

Dahlia said it’s challenging keeping up with sporadic buying habits. When large amounts of food perish before getting sold – like broccoli in one instance – they stopped ordering it. But a short time later customers came in looking for it.

“Very perishable” items like bread, milk and produce are essential to attract customers into a grocery store, but since the products are not turning over fast enough, the family endures a loss nearly every week on those goods.

Dahlia said she’s been drinking a lot of milk this year to avoid wasting it. Derek sometimes churns it into butter for them at home once it starts to sour.

From the beginning, the Millington’s knew they wouldn’t have the purchasing power to compete against big box stores. But they keep their costs low by operating in a smaller space. By having customers place orders rather than shop in store, they are able to operate with fewer staff, lower overhead, and spend less time restocking and facing shelves.

“So we went with an online grocery warehouse model thinking that it would be very efficient,” she said.

Dahlia doesn’t feel like the prices aren’t so high as to justify the time and gas it costs to drive to Penticton or Oliver.

READ MORE: Small Okanagan community recently left without a grocer is starting to feel the pinch of economic swings

Beyond the pricing, Little Falls Foods also carried products that aren’t easy to find. They especially cater towards cooks who enjoy Italian and Taiwanese dishes, with plenty of authentic ingredients from both countries.

"Personally I really care about food," she said. "And I care about high quality food – not high price but high quality. I’ve looked and done my best to source foods that are interesting and affordable." 

When it comes to bigger brands, Little Falls Foods chooses ones that are socially conscious.

Despite being located in a small community, they offer a very meaty selection of vegetarian and vegan items.

Many of the goods carried at Little Falls Foods are unique because they’re produced from smaller businesses which don’t have the means to pay for shelf space in corporate grocery stores.

“So here we bring in items that we think people will appreciate,” she said.

The model allows customers to purchase their groceries online or through a catalogue that can be taken home. However some people prefer to browse around, so earlier this week, Little Falls Foods opened a larger section of the shop to the public.

"We're trying to respond as quickly as possible to peoples requests."

These aisles are now open to the public to browse.
These aisles are now open to the public to browse.

To keep the business afloat, the family has had to cut staff and is now operating with as few people as possible. But they don’t want their business to be a reflection of the Okanagan Falls community. Since a large grocer like IGA wasn’t able to remain viable, and if Little Falls Foods is unable to survive with a smaller model – Dahlia doubts any other grocer would be willing to set up shop again for a while.

From Highway 97, follow the signage to get to Little Falls Foods in Okanagan Falls.
From Highway 97, follow the signage to get to Little Falls Foods in Okanagan Falls.

To contact a reporter for this story, email Dan Walton or call 250-488-3065 or email the editor. You can also submit photos, videos or news tips to the newsroom and be entered to win a monthly prize draw.

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