Alaska Commercial Co.: melding with rural communities.

• Author: Jaeger, Stephanie
• Position: RURAL BUSINESS - Company overview

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Alaska Commercial Co.'s long history began in 1776 when Russia's empress, Catherine the Great, allowed fur traders in Alaska to establish the Russian-American Trading Co. Operating trading posts throughout Alaska, the Russian-American Trading Co. bartered goods for furs and gold until the United States bought Alaska in 1867. Two San Francisco merchants then bought the company and renamed it Alaska Commercial Co. From 1867 until the end of the gold rush, Alaska Commercial Co. (ACC) supplied groceries and other goods to trappers, explorers and gold miners throughout rural Alaska. ACC's stores became village centers where mail was delivered, travelers found places to stay and community activities took place. Until the 1900s, Alaska's economy was not a cash economy and customers traded pelts, gold, artifacts, fish and anything of value for groceries and other merchandise.

MORE HISTORY

In 1922, the company was sold and re-named the Northern Commercial Co. with its headquarters moved to Seattle. Adding heavy equipment and machinery to its grocery and general merchandise product mix, the company contributed to the infrastructure development of rural Alaska. In 1974, the Northern Commercial Co. was sold again and divided into three different companies. The department stores in Anchorage, Fairbanks and Kenai were sold to Nordstrom. The heavy equipment company was sold to the Skinner Corp. in Seattle. In 1977, the rural stores were sold to the Alaska Community Enterprise Development Corp. (CEDC) and these 11 stores became the first of the contemporary Alaska Commercial Co. In 1992, the Northwest Co., Canada's largest rural retailer, bought ACC, making the two companies North America's largest rural retailer. In only 10 years, ACC grew from 11 to 30 stores in 21 rural Alaska communities. ACC's sales have increased from $11 million to more than $80 million while retail prices have decreased and the assortment of goods available has improved. ACC's stores have become important sources of employment in rural Alaska communities and have continued to be centers of village life.

BUILDING THE BASE

Since the Northwest Co. bought ACC, it has remodeled its old stores and built new ones. The most recent opened in December 2010 in Hooper Bay, and was built in conjunction with the Sea Lion Corp., the local Native corporation. Now the company has 33 stores and Quikstops throughout rural Alaska. In most communities they have changed their name...