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Healthy retail is a business model that brings fresh, nutritious food options to stores that may not traditionally offer them, such as convenience stores.
A healthy retail environment makes it easier and more affordable for customers to choose foods like fruits, vegetables, water, and other nutritious products, while reducing access to harmful products such as tobacco.
Healthy retail models work in both urban and rural communities and are being used successfully across the country to improve access to healthy food while supporting local businesses.
Benefits of a Healthy Retail Model
Shifting to a healthy retail approach can offer several advantages for retailers:
- Increased profit potential
Tobacco products often have low profit margins, sometimes as little as 12%. In contrast, items like fresh produce can be marked up at much higher rates, often around 100%, creating greater earning potential. - Expanded customer base
Offering fresh food and grocery items can attract new customers. Retailers may also become eligible for programs such as Double-Up Food Bucks for SNAP customers or meet WIC (Women, Infants and Children program) requirements, opening access to additional shoppers and reimbursement opportunities. - Lower costs and fewer risks
Selling tobacco requires a Tobacco Retail License from the Oregon Department of Revenue, which costs nearly $1,000 per year. Retailers are also subject to inspections and potential fines for violations. Ending tobacco sales eliminates these costs and risks. - Staying ahead of tobacco regulations
Tobacco sales are increasingly regulated at the local, state, and federal levels, particularly flavored products. Healthy retail offers a sustainable alternative revenue stream that aligns with public health goals. - Standing out in the community
With more than 300 tobacco retailers in Clackamas County, many convenience stores sell similar products. A healthy retail model helps businesses differentiate themselves and better meet community needs. - Reduced theft and crime
Tobacco products are high-risk for theft due to their value and resale potential. Removing tobacco from inventory reduces the risk of break-ins and product loss. - Supporting community health
Research shows that increased access to tobacco makes it easier to start using and harder to quit. Increasing access to healthy foods while reducing tobacco availability supports a healthier community overall.
Resources for Businesses
Support is available for businesses interested in adopting a healthy retail model:
- Livelihood NW – Free and low-cost business advising and training
- Small Business Development Center – Free one-on-one counseling and affordable courses
- Hispanic Metro Chamber of Commerce – No-cost small business support and leadership programs
- Sell Healthy! Guide – Tips for stocking and promoting healthy foods
- How to Make Money Selling Produce – Oregon Health Authority video
- Healthier Food Retail – CDC guide for retailers
- How to Open a Restaurant – Clackamas County Public Health resource
Healthy Retail Pilot Project
In August 2024, Clackamas County Public Health awarded a grant to The Little Blue Store in Milwaukie to support its transition to a healthy retail model. The store ended tobacco sales and reopened in September with fresh fruits, vegetables, and dairy products. Plans are underway to offer fresh Ethiopian take-out food by the end of the year.
The store is located at 2936 SE Washington St, Milwaukie.
An evaluation of the pilot project will begin this fall and will guide future healthy retail efforts in Clackamas County.
Photos by Hamid Shibata Bennett
Contact
Marc Czornij
Public Health Program Planner
mczornij@clackamas.us
