The exterior of People's Food Co-Op, Wednesday, Nov. 14, 2018 in Ann Arbor. (Ben Allan Smith | MLive)

ANN ARBOR, MI - People’s Food Co-op is struggling to make a profit, but this is not the first time in the Ann Arbor co-op’s 48-year history it's faced hard times and had to adapt.

Take a look back at how the co-op has evolved over the years.

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The Ann Arbor News archives courtesy of oldnews.aadl.org

The Sept. 29, 1974, edition of The Ann Arbor News recaps the origins of People's Food Co-op and why people like to shop there.

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A customer weighs beans at the People's Food Co-op on Sept. 29, 1974. (The Ann Arbor News archives courtesy of oldnews.aadl.org)

1971 - Class project turns co-op

People's Food Co-op was born from a University of Michigan social work class project, according to the co-op. Students started a buying club to help low-income people purchase fresh, health food, and the concept proved popular.

In February 1971, the group started renting a space and offering more products. By August, it had officially incorporated as People’s Food Co-op and moved to a larger location at 802 S. State St.

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A sign hangs outside the People's Food Co-op in October 1982. (The Ann Arbor News archives courtesy of oldnews.aadl.org)

1972 - A new home for the co-op

In October 1972, People’s Food Co-op moved to 722 Packard St., where it operated for 13 years.

At that time, the co-op was selling grains, cheese, oils and beans in addition to fresh produce. People’s Food Co-op was run by four full-time coordinators, and shoppers pitched in to carry out daily operations, receiving 1.5-cent discounts for working an hour a week at the co-op, according to a report from The Ann Arbor News.

The food co-op concept gained popularity in the Ann Arbor area in the ‘70s. People’s Food Co-op was part of the Michigan Federation of Food Co-ops, which included a mill and warehouse in Ann Arbor that sold organic grains, beans and flour to co-ops nationwide.

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Line at the cash register at People's Food Co-op in October 1982. (The Ann Arbor News archives courtesy of oldnews.aadl.org)

1975 - Opening a second location on Fourth Avenue

In 1975, People's Food Co-op opened a second location at 212 N. Fourth Ave., and other food collectives and co-ops followed to the same block within a few years. People's Food Co-op grossed close to $500,000 in 1978, according to the co-op.

The Michigan Federation of Food Co-ops also grew quickly from the '70s to '80s. By 1982, the food co-op federation was distributing more than $5.5 million of food items a year from a warehouse in Ann Arbor, according to The Ann Arbor News.

The People’s Food Co-op had 1,500 members and recorded $940,000 in sales with a $10,000 profit at the Fourth Avenue store in 1981, The Ann Arbor News reported. At the time, the co-op relied on consensus to make decisions, and if even one member disagreed with a proposal it was rejected.

“The dilemma for cooperative enterprises in America has always been how to be true to the spirit of cooperative philosophy -- which has as its fundamental premise the simple idea that people can work together for their common good in a non-competitive way -- in a nation whose economic system is based fundamentally on the principle of competition,” wrote The Ann Arbor News reporter Jane Myers in 1982.

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The Ann Arbor News archives courtesy of oldnews.aadl.org

An article in the Feb. 21, 1982, edition of The Ann Arbor News looks at the growth of co-ops in the Ann Arbor area.

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People shop at the People's Food Co-op on Fourth Avenue in 1990. (The Ann Arbor News archives courtesy of oldnews.aadl.org)

1980s - Plans fall through for a new Fourth Avenue facility

At the end of 1982, People’s Food Co-op purchased the building at 216-218 N. Fourth Ave. for $115,000, according to The Ann Arbor News.

The plan was to invest at least $70,000 in renovating the building so it could house the People’s Food Co-op, People’s Produce Co-op, Wildflour Community Bakery and the Herb and Spice Shop, which were located in separate storefronts on Fourth Avenue at the time.

One year later, People's Food Co-op decided to sell the still vacant building, with most of the original purchase price still outstanding plus $25,000 in construction-related debt and $20,000 in short-term loans from members.

Fundraising efforts to support the renovations had failed, and members disagreed on the vision for the co-op’s future.

At that time, the co-op stores were transitioning to a new structure with a paid general manager and paid cashiers rather than volunteers.

Accountant Lonnie Loy and hotelier David Woodrow bought the Fourth Avenue building from the co-op in December 1983 for an undisclosed price, The Ann Arbor News reported. Today, People's Food Co-op occupies 216 N. Fourth Ave., and the building is owned by Ed Shaffran, of 216-218 Assoc. LLC.

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Ray Kelly, 78, of South Lyon, buys the first share under People's Food Co-op's new member-owner structure implemented in 1986. (The Ann Arbor News archives courtesy of oldnews.aadl.org)

1985 - New Packard store, new membership system

By the summer of 1985, the People’s Produce Co-op and the Herb and Spice Shop had merged with People’s Food Co-op. The co-op moved its Packard Street location to a new store at 740 Packard St. and began selling dairy products and poultry.

In 1986, the co-op changed its membership structure from requiring an annual fee to having members purchase shares for $60, according to The Ann Arbor News. The goal was to generate more capital for the co-op and create a stronger sense of ownership and commitment among members.

People’s Food Co-op continued to grow through the end of the ‘80s, with nearly 1,800 members and $2.05 million in sales in 1988. The co-op had about 40 paid employees and was overseen by a four-person management team that reported to the board of directors.

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Paula Davey shops at People's Food Co-op on Sept. 22, 1991. 9The Ann Arbor News archives courtesy of oldnews.aadl.org)

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PFC managers David Blackburn and Ruth Ransom pose at the Packard store on April 16, 1989. (The Ann Arbor News archives courtesy of oldnews.aadl.org)

1990s - Opening and closing stores

In 1994, People's Food Co-op moved two doors down on Fourth Avenue into part of the building it had previously attempted to renovate. The new store offered three times the square footage.

At that time, PFC had 3,328 member-owners, and its annual revenue from the stores on Fourth Avenue and Packard Street was about $2.4 million, according to The Ann Arbor News.

Competition from Whole Foods and other natural-foods grocers had picked up by the mid-90s.

People's Food Co-op turned a profit in 1996 after losing money the previous couple of years. But the Packard store was still losing money, and the co-op decided to close it in 1997. Wildflour Bakery closed that year too.

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The Ann Arbor News archives courtesy of oldnews.aadl.org

An April 21, 1996, edition of The Ann Arbor News reports on the 25th anniversary of the People's Food Co-op.

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Employees stock shelves at People's Food Co-Op, Wednesday, Nov. 14, 2018 in Ann Arbor. (Ben Allan Smith | MLive)

2000s - Catering to customers

In 2000, People’s Food Co-op opened Cafe Verde, a fair-trade coffee bar, as well as a prepared foods section and hot food/salad bar at its Fourth Avenue store.

From 2007-12, gross sales at the co-op store rose from $3.4 million to $6.5 million, according to The Ann Arbor News. PFC boasted 7,500 members in 2012, the last time the co-op was profitable.

From 2013: People's Food Co-op upgrades: New leader keeps millennials in mind

From 2016: Workers vote to unionize at People's Food Co-op in Ann Arbor

PFC ended 2017 with a $91,300 deficit in operating costs, according to the co-op's annual report. Today, the co-op board and staff are looking for new ways to attract customers and keep the store open.

"If we do nothing, we'll be out of business,” said PFC Board Treasurer Bruce Curtis, at a town hall meeting in November 2018. “But we have an opportunity to do something.”