Fair-trade retail organization Ten Thousand Villages closed its 13 company-owned stores earlier this year as it shifts its priorities to online sales and wholesale supply.

Stores closed by the end of March in locations along the East Coast and in Texas. A network of 21 independent stores operated by local boards remains open in the U.S.

“While closing stores and saying goodbye to talented staff is a difficult decision, it positions us to thrive in a modern marketplace and deepen our impact,” said CEO Dan Alonso in a news release.

Ten Thousand Villages is widely credited with starting the global fair-trade movement. It traces its roots to 1946, when Edna Ruth Byler wanted to sell crafts made by artisans she met in other countries. She sold items out of the trunk of her car and her Akron, Pa., basement. The business grew into Mennonite Central Committee’s SELFHELP Crafts of the World, renamed Ten Thousand Villages in 1996. The first store opened in Altona, Man., in 1972, followed by the first U.S. store two years later in Bluffton, Ohio.

Ten Thousand Villages U.S. peaked with 79 stores in 2010. Its Canadian counterpart ceased corporate operations in 2020 and closed 10 company stores and its online presence there. Three stores continue today as Ten Thousand Villages in Abbotsford, B.C.; Brandon, Man.; and Cobourg, Ont.; along with three others that have rebranded in Calgary and Edmonton in Alberta and Port Colborne, Ont.

“We are being as resourceful as we possibly can to preserve the viability of this mission,” Alonso told Anabaptist World. “. . . Everything we are focusing on is making sure we have a viable model for the future.”

Alonso said potential tariff rates could have a big impact on groups Ten Thousand Villages has supported in places like Bangladesh, India and Vietnam.

“With tariffs and everything changing, it affects us negatively,” he said. “I know exactly how much it will be if we absorb that cost and don’t pass it on to the consumer.”

The unpredictable nature of international commerce and tariffs is prompting Ten Thousand Villages to diversify its operations — currently working in 27 countries — while not walking away from longstanding relationships.

“But the bigger issue we have is the most recent consumer sentiment survey is a 32% drop from this time last year,” said Alonso of the University of Michigan’s index, which is used to estimate future spending and saving. “There’s a decline right now in how people feel about buying. . . . We really have to make a stronger connection with the consumer. If we don’t, we will be irrelevant.”

In addition to focusing on supplying wholesale to about 5,000 businesses and retail outlets, Ten Thousand Villages is working to increase its online sales because direct sales have a higher profit margin than distribution through intermediaries.

“As stores are closing, we are doing everything we can to capture email addresses from people who were shopping to let them know how they can continue to support the products. And ecommerce is growing year over year,” Alonso said. “Have we brought them all along on the journey? No. Are we trying? Absolutely.”

Acknowledging that store closures grab headlines, Alonso suggested the bigger story is about how the retail industry is evolving. Younger shoppers are more interested in sustainability. Cost of living can vary dramatically by region, making shoppers in some areas less willing to pay certain prices.

“I’ve watched it for 10 years, of hearing the Ten Thousand Villages organization saying we need to find the younger customer . . . or there’s a lot of pushback from certain areas of saying our shopper isn’t willing to pay prices that are too high,” he said. “That leads to greater clarity of asking what is Ten Thousand Villages? Who are we as a wholesaler supporting these independent shops?”