REXBURG MAN
WINS EMPORIUM LOGO CONTEST

ST. ANTHONY – Melvin Burgener of Rexburg has won the logo contest sponsored by the Fremont Emporium.

The Emporium board and support committee chose Bergener’s logo idea, and board member Vern Russell offered to finalize the design for use on the store sign, stationery and advertising. Mr. Burgener will receive a $50 cash prize, donated by St. Anthony resident Cathy Koon.
This is the logo idea submitted by Mr. Burgener.

Frequently Asked Questions

What is the Fremont Emporium? The Fremont Emporium will be a community-owned store that sells new clothing. A corporation has been formed with a seven-member board of directors to sell shares (stock) to fund the purchase and renovation of a building, hire a manager and staff, and to stock the shelves. Community-owned stores are designed by residents to meet specific local shopping needs at fair prices. Everyone in the community is given the opportunity to invest in the store by buying shares. Buying shares is voluntary and the store is open to everyone, whether they are share holders or not

What is the process for getting the store opened? The first step is to develop a business plan which we have done. The business plan was written more than a year ago by Entrepreneurial Center students in Rexburg and is being updated. We have established board of directors, filed corporate paperwork, developed an offering document, and are waiting for final approval from the Idaho Department of Finance so the board of directors can begin selling shares. How quickly these things can be done will determine when we open the store. We hope to be open by fall 2008.

How big will the store be? The old J.C. Penney building at 138 North Main is approximately 6,000 square feet with another 2,500 square feet of storage space in the basement.

Where will we put the store? We have made an offer to buy the building from its current owners.

What will it cost to start up the store? We estimate we need $500,000 to buy the building, make necessary renovations, purchase the fixtures and inventory, hire a manager and staff, and set up the office. Community-owned stores work with money raised from the sale of the stock. We will be authorized to raise as much as $900,00. If we raise more than the initial $500,000, the money would be used for the store.
Stock will be sold for $500 per share. One person can purchase one share or as many as 20 shares. You must be at least 18 years of age and a resident of Idaho to buy stock.

Who decides what is sold in the Store? We do! The decision has been made to limit the Emporium to a clothing store. The manager will work with the buyer to purchase new, top quality clothing that is appropriate for the area. The manager’s job description will also mandate that he/she be responsive to requests from the community concerning products they’d like the store to carry.

Will the Store carry good quality products? Where will they come from? The Emporium will be part of a cooperative of stores in Montana, Wyoming, Nevada and Dubois, Idaho, who contract with a buyer in Powell, Wyo. We will get the benefit of his 40 years of experience and buying in larger quantities. A good buyer comes with experience and knowledge of how and where to buy good products. They also know where to find the bargains, whether it might be in the clothing districts, at trade shows, via catalogs, sales representatives, etc.

Will the product prices be reasonable compared to those offered at big box stores? They can be. This will depend on where the buyer purchases product and the wholesale price he pays. In Powell, the prices offered at The Merc are often cheaper than those at the mall in Billings, Mont.

Will the store buyer buy overstock? The buyer will, from time to time, locate and purchase overstock that fits our community’s needs. For example, in Powell, the buyer purchased last year’s prom gowns from Macy’s. Gowns that should have sold for $200-$300 each sold instead for about $50 at the Merc and filled a need in the community for decent prom attire at a reasonable price.

How many employees will the Community Store need? It’s hard to answer this yet, but we know we’ll need a manager and several clerks. We’ll have a better fix on the number of salespeople and other roles that need to be filled as we redo the business plan.

How do we find a manager? Having a good manager is key to the success of the store. We will recruit people from the community who have pertinent experience. If that doesn’t work, we’ll advertise outside of St. Anthony.

What will we offer in the way of salaries and benefits for employees? It’s too early to determine this, but we would like to offer more than minimum wage and benefits to our hourly workers.

Can a community owned department store provide health insurance and other long-term benefits to its employees? Yes.

What are the investor criteria? How much can an individual invest? And do they have to live in the village or within a certain radius of town? Investors will be limited by their income to how much they can spend on stock. This is the law, and it’s designed to protect the public from unscrupulous investment schemes. We have proposed a limit but are waiting for the Department of Finance to approve our application before we can announce it. Only residents of Idaho can purchase stock.

Can a philanthropist give money without buying shares? The corporation can accept donations, but the donor wouldn’t receive voting privileges.

Do we need to do a marketing study? This is being done by a team of BYU-Idaho interns.

Could we get grant money? Not likely, but we will investigate every possible resource.

How can someone who is not a shareholder in the store offer input to the needs of the community? Folks will be able to offer input by talking to the Store’s buyer, manager and/or members of the board of directors. We also plan to seek input via a suggestion box, periodic surveys, etc. A community-owned store is all about meeting the needs of the majority of the citizens, whether they are shareholders or not.

How long does it take before a store is opened? We expect the sale of stock to take six months. Then it will take a few months to get the building renovated and open for business. It will depend on how quickly we can sell the shares.

Do shareholders vote on anything, or is everything decided by the board? This will be spelled out in the corporate by-laws which will be established as part of the incorporation process. Once we have stockholders, the corporation will hold annual elections and meetings.

What is the stock sales pitch to potential investors who need a return on their investment? First of all, no one should invest unless they’re prepared to lose their money as there are no guarantees that the store will succeed. However, when community members buy shares, they are much more inclined to support “their” store when a shopping need arises. That said, we believe it can and will be a success. Our focus, though, is that this is an investment in our community, with an emphasis on the word “our.” The board plans to pay dividends on the stock once the store is up and running, and operating profitably. The Powell Merc made a profit each of its first years in business and paid 15 percent dividend to its stockholders in the fifth year.

When profits are made, are they put back into the business or given as dividends to shareholders? Initially, the profits will probably be reinvested in the business as the store will need to reorder what it has sold and expand its inventory as we get a better sense of what merchandise is most popular.

How large is the Community Store core planning group? The board has seven members: Rex Powell, Junell Williams, Aldon Bowles, Joyce Pead, Vern Russell, Evan Tibbitts and Jim Willmore. A support committee of about a dozen people meets weekly with the board.

How were the board members chosen? Board members volunteered to serve. They were recruited at town meetings and community group gatherings. Once the Community Store is up and running, the corporation will be required to hold annual meetings at which the shareholders will have the opportunity to elect the board of directors.

Can our store carry groceries? No. We don’t want to duplicate the merchandise and goods already available in the community, and we will have limited space. Also, buying and managing groceries is very different from buying and managing clothing.

Can all of the community-owned stores form a buying co-op? The buyer for the Powell store buys for seven stores and has said we can join that group.

What is a realistic inventory turnover? Inventory turnover is the amount of times you sell everything in your store within a year. A healthy inventory turnover is different depending on the type of business you have. For instance, for a book store it might be three times in a year. On the other hand a healthy turnover for clothing and shoes may be different. A healthy inventory turnover for the Emporium will depend on the final merchandise mix.

How do you buy inventory at a price that is within the range of what someone earning $20,000 a year can afford to pay at retail? This will be the responsibility of the store’s buyer. It will be his job to find merchandise that is affordable for those who live here. Buyers want to purchase products that sell. No buyer is perfect, and mistakes are made. But a good store buyer should be able to find products that fit a $20,000/year income.

Can the Fremont Emporium support local sports, or other groups? Yes, but monetary support will depend on the success of the store.

How do you avoid damaging stores that already exist? We want to work in harmony with the surrounding businesses. We are looking to augment and expand on what is available in St. Anthony. While some items may be the same, we will not duplicate brands. We want to bring in a different mix of items. The idea is to increase the amount of traffic in our business district so every business benefits.

Cathy Koon
Economic Development Specialist
Fremont County, Idaho

Sherri Thomas
Greater Saint Anthony Chamber of Commerce President
Cell: 208-390-6784

Fremont Emporium Now Selling Stock

It's official the communtiy store, The Fremont Emporium, can start selling stock.
Anyone 18 and older and a resident of Fremont County can purchase stock.
Stock prices are $500 and you can purchase up to 20 shares. We have an office at the County Annex building at 105 N Bridge street, in the old call center. Hours 10 a.m. - 2 p.m. Monday, Wednesday and Fridays. Tuesday 6 p.m. - 8 p.m. Saturday 9 a.m. - Noon

For information about purchasing stock, call (866) 439-1614 or email fremontemporium@myibocs.com