HISTORY
URM Stores, Inc. (formerly United Retail Merchants) began in 1921 when five retailers banded together to form the corporation under the laws of the State of Washington. Its history is filled with interesting and sometimes frightening stories of the company’s fight to survive. URM Stores, Inc., and its Member-Owners overcame the competition of five other wholesalers, the Great Depression, lack of financing, and a host of other problems, but it has survived and prospered.
URM is a retailer-owned business. This means that the shareholders of URM are all retail grocers who are customers of URM, as well as its Member-Owners. This dual relationship forges a special bond in which the retailer and URM employees establish a close business relationship and is one very important reason for the success of both the retailers and URM. This time-proven relationship is the best way to serve the Member-Owners’ needs and to provide them with the support necessary to ensure their growth and success.
During the Company’s meager beginnings, it employed some unconventional and enjoyable ways to raise funds. In an effort to raise funds for the purchase of a hydraulic truck for the warehouse, raffles were held. From the membership meeting of November 5, 1928: “A raffle conducted voluntarily by members O’Neal, Ewert, and Messrs, worked out favorably for Messrs, Hurd and Ewert. The former winning a fine auto robe and the latter winning a set of drinking mugs.” By the means of these types of raffles, $28.75 was raised for the fund to assist with the purchase of a warehouse hydraulic truck. After similar types of raffles, the Company purchased its first truck in 1929. More good news followed: “In September of 1929, the Company announced sales of $106,381, a 20 percent increase over the previous September.” The future seemed bright.
The leadership at URM believed it had prepared for the worst following the collapse of national financial markets. No one could have foreseen the depth and duration of the economic malaise that would become known as The Great Depression.
At first all was well. Sales in 1930 topped $1 million and the Company showed a net worth of $72,000. The next 10 years in America were marred by hunger, soup lines, bank failures, burglaries, and unemployment. At one time in 1932, private detectives were employed to investigate a burglary at the warehouse. According to records, “On May 13, a gentleman from the ADT Company explained their burglar alarm system and presented figures for wiring and protecting our warehouse.” This was a difficult period, and at the regular meeting on April 27, the manager presented a plan for decrease in overhead expenses. Two days later, the board of directors met with all of the office and warehouse personnel, informing them that “the payroll had been cut by layoffs and shifting of help.” Yet even in the worst days of the Depression, URM was able to look ahead to the future.
In 1935, the first labor contract was signed with the warehousemen and Teamster union. In 1936, the Company saved enough money to purchase its first three-quarter-ton truck. Conditions had improved enough toward the end of 1936 that URM was able to pay its first patronage dividend.
The 1940’s saw the onset of World War II which brought government price controls, but for URM it was a boon. As a retailer-owned organization, URM was permitted the smallest price markup of any classification of wholesalers. Bottom line: URM Member-Owners enjoyed a slightly larger margin than others in the regional market.
Over the years, several additions have been made to URM’s core business. In the 50’s and 60’s, URM started operating a group of small regional distribution centers called Cash & Carry, which provides small stores, restaurants, and similar business operations with a full selection of grocery, food service, frozen foods, and perishable products. Today, these six Cash & Carry stores operate in Washington and Idaho as retail stores open to the public featuring both institutional products and retail items.
URM Development Corporation was established in 1959, as a finance company to assist Member-Owners in obtaining the capital required to grow their businesses. This subsidiary has proven to be a growth tool to the Member-Owners.
The year 1968 saw the introduction of Western Family, which is a complete line of private label products. URM is one of a group of cooperative distribution centers that own Western Family Foods. In 2016, URM joined TOPCO, the largest American retail food group purchasing organization. TOPCO represents $200 billion in retail sales and thousands of stores. As a result of joining TOPCO, URM transitioned from using the Western Family brand to the Food Club brand. The decision to transition came after several cooperative distribution centers sold and the declining volume of Western Family made it difficult to maintain competitive pricing as well as production in certain categories. Like Western Family, Food Club has a long history, winning shopper loyalty since 1945. Today the private label includes TopCare, Valu Time, Simply Done, Crav’n, and Food Club.
In 1975, a warehouse expansion was completed, putting the total square footage at 483,000. In this expansion, the warehouse included excellent truck service and repair facilities. These facilities currently serve a fleet of over 60 trucks and 130 trailers, plus a number of forklifts, pallet jacks, and assorted equipment.
In 1976, URM established its Food Service/Convenience Store Departments, which has grown to approximately 1,000 customers. The Food Service Division services restaurants, schools, casinos, and other food away from home businesses. The Convenience Store Division provides goods and services to traditional convenience stores as well as small grocery stores that are not Member-Owners.
In 1979, URM Insurance Agency was initiated to provide low-cost business insurance coverage tailored to the needs of the grocery industry. Through this agency, URM offers its Member-Owners the finest selection of products and services.
In 1984, URM formed a real estate holding company called R.S.M. Inc., which acquires and leases supermarket properties to URM Member-Owners. That same year, URM purchased Rosauers Supermarkets from its founders, Mert and Jessie Rosauer and built its present corporate office facility.
In 1986 URM purchased Peirone Produce Co., to provide the URM Member-Owners’ with their own produce source. Peirone Produce Co was founded in 1945 by Joe Peirone and today, has grown to over a 150 million dollars in annual sales servicing URM Member-Owners’ with the best quality and freshest produce available in the inland northwest.
In 1990, URM sold its interest in Rosauers Supermarkets to the Rosauers employees under an Employee Stock Ownership Plan.
In 1999, URM formed Premier Brokerage Company to assist member-owners in complex real estate transactions.
In 2000, URM successfully bid against competitors and was able to reacquire Rosauers Supermarkets, which today is a wholly owned subsidiary of URM Stores.
In 2015, another expansion was completed, bringing the total warehouse square footage to approximate 685,000. This expansion allowed URM to add items to its product selection, giving it 26,000 items in all with an average weekly inventory of over $60 million. This increased product selection helped URM’s Member-Owners expand their market share.
In 2016, URM expands their business west of the Cascade Mountains for the first time in their history. That same year, URM joins TOPCO, the largest American retail food group purchasing organization..
In 2021, supporting the continued growth of their business to western Washington and parts of Oregon, URM purchased property located at 6102 S. Hayford Road on the West Plains of Spokane County. The property includes two buildings, adding nearly 140,000 square feet of floor space used for staging and storage.
In 2022, the Puget Sound Business Journal notes URM as the 5th largest, Washington State-based, Privately Owned Company.
Over the years, URM and its subsidiaries employ over 3,000 employees and their sales volume has grown to over $1.8 billion.
URM’s core business is the purchasing, warehousing, and delivery of merchandise inventory to its Member-Owners through its patronage departments. URM operates on a cooperative basis, which means that all of its net earnings on business done with or for its Member-Owners through its Patronage Departments are allocated and paid to its Member-Owners in the form of patronage dividends. Such patronage dividends are paid to the Member-Owners in proportion to the business each Member-Owner does with URM through each of its Patronage Departments.
Over the last century, the history and growth of URM Stores, Inc., stands as a testimony to the strength and vitality of the retailer-owned system. The entire URM team is optimistic about the future, drawing strength from the successful groundwork laid in the past and upholding a meaningful tradition rooted in faith and dedication of our loyal Member-Owners, customers, vendor partners, and employees.