Choice Market, the Denver-based convenience store chain known for blending a focus on fresh and high-quality food with a tech-forward approach to retail, has closed permanently. CEO Mike Fogarty announced via Linkedin that the company will be closing its doors permanently after months of attempting to navigate a reorganization process.
“This is a tough post to write, but after several months of working through a potential reorganization, unfortunately, Choice is closing its doors for good.” Fogarty expressed gratitude to the company’s investors, employees, and partners, and emphasized that despite the challenges, Choice’s mission to innovate and provide convenient, high-quality food for its customers was something he remains proud of.
“I am hopeful that Choice made our industry think differently about what it means to push boundaries and innovate for the next generation who values quality, health, and convenience,” said Fogarty (who was a speaker at Smart Kitchen Summit 2019).
After launching in 2017, Choice Market gained nationwide attention for its tech-forward C-store model. The company differentiated itself by offering fresh, locally sourced food combined with advanced technology to provide a seamless shopping experience. At its peak, Choice operated five stores in the Denver area and began experimenting with automated, small-format Mini Marts, positioning itself as a leader in the urban convenience store trend.
However, like many retail businesses, Choice Market was severely impacted by the COVID-19 pandemic. As sales plummeted during the lockdown period, the company struggled to bounce back. The pandemic was just the beginning of a string of difficulties that plagued the company. Rising inflation, skyrocketing costs of goods, and labor shortages compounded the financial strain, ultimately leading Choice to file for Chapter 11 bankruptcy this summer and finally close down this week.
While the company made efforts to cut costs, such as reducing its executive team and adopting new in-store technologies to boost margins, these measures weren’t enough to save the business. Earlier this year, C Store Dive reported an investor promised to inject $1.5 million into the business, but the deal fell through in April, leaving bankruptcy as the only option.
The AI-powered automated store concept, the first of which the company rolled out in October 2022, was the focus behind a Series A raise around the same time. But with this week’s closure, we won’t get to see a fuller rollout of the concept of the smaller format (400 sf) automates store concept,
Fogarty remains hopeful for the future. He hinted at new beginnings in his parting message, stating, “I plan to take all the learnings and apply [them] to a new chapter. Until then, I just want to express my gratitude and appreciation. Onward.”
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