Preserving the Heart of Sioux Falls

By: Greg Koch
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Just over a month ago, I wrote a blog post that gained significant attention. Since then, multiple local businesses in Sioux Falls have closed, including some that had been part of our community for decades. This is truly sad news and highlights the urgency of my message. To be clear, I'm not begging for business; I'm asking to earn your business. I'm asking people to take the time to visit our stores and other local businesses, including our Downtown neighbors and friends at The Bridges.

Despite the impact of my previous post, I was stunned to receive a donation request from a large, financially successful corporation for their fundraising campaign (I guess that viral post wasn't as viral as I thought). Additionally, I’ve received requests from animal shelters, youth sports teams, and various social service groups—all within one month. This is the norm for a small local business. Everyone wants a pound of flesh. The needs of our community don’t stop because business is struggling. As a local business owner and community member, I want to support every cause that approaches me, but we need to keep our donations with our chosen event partners and maximize our support to the organizations that have trusted us to support them. Believe me when I tell you when it comes to volunteering, donating, fundraising, and supporting this community we punch well above our weight class. 

605 Running Company operates two locations, open 7 days a week from 9am-5pm and later on select days. Our products are available online with in-store pickup and shipping options. Through effective business deals, we’ve signed below-market-rate leases and efficiently balanced our staff and operating hours between both locations. We’ve also spent countless hours analyzing our inventory to keep our stock room tight and clean. We employ quality staff and pay them market rate or above. The armchair tropes simply don't wash here. We are doing everything we can to succeed in Sioux Falls.

Our core values are transparent, reliable, and fun. While delivering fun has been challenging lately, we continue to strive for it. In the past two weeks, we offered three demo experiences with top brands Hoka, Altra, and ON Running, yet saw less than 25 participants in total. There was a time when over 100 participants would show up for a demo run. These experiences are free and often include swag, deals, clinics, classes and opportunities to try products without buying them. Simply put, we are not seeing engagement. 

I love this community, but the times have changed. It seems priorities have shifted and what we offer doesn't appeal like it used to. Unfortunately, more local businesses may have to close before the tide turns. This isn't an idle threat - check the local news and you'll see that local businesses are hurting. Just today, I got a note about a local boutique calling it quits. I believe, as it relates to our business, that this is a consumer choice matter. Our brands are seeing record sales (specifically, Hoka and Brooks, our top two brands), yet we are struggling to maintain profitability. This would indicate that consumers are choosing to purchase these products locally from a different source (box store, online outlet, or direct to consumer websites). We truly are the little guy taking on large corporations.  
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I remind my managers and staff that there is no plan B for me personally. I’m doing everything within my capabilities to keep 605 Running Company open and thriving. These are the darkest hours of our business. We’ve enacted a scorched earth policy regarding future ordering, meaning fewer brands and less selection in styles and colors. We simply cannot afford to offer more merchandise that doesn’t get purchased locally at a decent margin. Even if we make it to 2025 the effects of this down year will be felt for the next 13-15 months in our shops. What makes us special isn’t the product; it’s the service and the people. What we have to offer is for everyone, not just runners.

Your support is crucial now more than ever. We thank all our loyal customers for their continued support in July. It was a great month for cash flow, but our business still struggles to be profitable. We cannot sell at a discount and expect positive accounting results. Please keep sharing our message, like and subscribe to our social media channels (including YouTube), leave a positive review on Google, tell your friends about us, and shop local as often as you can. At the very least show up to the FREE things we offer so that we know that our community still has a beating heart.
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We can do this. There is light at the end of the tunnel for us. I'm always optimistic about what this community can do when challenged. Currently, we are seeing more folks shopping as we prepare to go back to school. My challenge is for you to give the local shops a chance to earn your dollars. A pair of shoes, a sweater, stationary, anything from a local store even the smallest purchase makes a huge difference. Thank you for your continued support. 

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605 Running was back in action helping serve the evening meal to the guests at St Francis House on the first Thursday of August! Always so enjoyable to help out. Thank you to Bev Soukup , Eva Gut and her boys, and Bruce Pollard . #run605