In November, the Alaska Commercial Co. (AC) unveiled a new 26,000-square-foot grocery and general merchandise store in Kotzebue, Alaska, which lies about 26 miles north of the Arctic Circle in the northwestern corner of the state.
The store plays a vital role in providing essential food and supplies to the residents of the town and surrounding villages, who have limited options across the remote Baldwin Peninsula. It also serves as a social hub and central part of community life.
With roots dating back to the mid- to late 1800s, the Alaska Commercial Co. is one of the largest employers in the state, with more than 1,000 workers. It operates nearly 40 stores in rural locations, many of which – like Kotzebue – are not accessible by road.
As a result, food and supplies must travel vast distances by barge or air, resulting in supply chain challenges that include lengthy transit times, extreme and unpredictable weather (and accompanying delays), higher spoilage rates and limited cold storage.
A two-year development, the Kotzebue store replaced a former location and features a wider footprint and contemporary design. To combat the higher energy costs of remote Alaska, it boasts energy-efficient equipment. 
“We collaborated with Kotzebue residents on this store, and their efforts will ensure that groceries and general merchandise are available in the region for decades to come,” said Kyle Hill, president.
The store’s layout was modified to create a more convenient and accessible experience, and it includes a Credit Union 1 branch. After receiving shopper input, AC increased the selection of made-in-store prepared foods and added a floral department.
The location also features an expanded deli and bakery department, a full-service hot case, an array of meats and cheeses and fresh baked bread.
Addressing the challenges of transporting fresh produce over long distances in the Arctic, AC has invested in optimized ordering systems to ensure a wider variety of high-quality options. In addition, space dedicated to chilled and frozen foods has doubled in-store, increasing product availability and minimizing out-of-stocks.
The store also features clothing, footwear and a motorsports department that offers all-terrain vehicles and items crucial for daily transportation, subsistence living and outdoor activities. 
“We are proud to be able to offer an expanded selection of items in this new store and be the first store in Kotzebue – and the first AC store – to offer self-checkout,” said Walt Pickett, VP of operations and general manager.
“We are equally proud that all food and general merchandise are now located on a single level, which will create a convenient shopping experience for all ages.”
Despite its remote location and frequent weather delays, the AC’s stores such as the one in Kotzebue are successful because of its efficient distribution network and assortment expertise that keep shelves full.
Recognizing the need for more affordable items, the company recently announced it would be adding a private label line, Oh So GOOD!, which features a wide assortment of nuts, bottled water, canned chicken and other household essentials like trash bags and cooking oil.
