Bomgaars is under contract to purchase the former Shopko building for expansion south of I-90.
“We’re too small for what the community needs,” said Luverne store manager Darrel Nielsen. “We need a bigger building to serve our customers better.”
In Luverne, the move will more than double the space for Bomgaars, which operates out of 22,000 square feet in its current West Hatting Street location.
The Shopko building offers more than 42,000 square feet and adds significantly more parking opportunities.
“We’re going to fill ‘er up,” Nielsen said about plans for the new space. “We’re going to have a lot more products that we don’t have right now.”
In particular, there will be more clothing and shoes, and all departments — including toys — will have expanded offerings with more selection.
Virgil Christensen, Luverne, and The Christensen Corporation developed the property over 20 years ago for Pamida, which was subsequently purchased by Shopko.
After Shopko stores filed for bankruptcy earlier this year, the company’s lease with Christensen Corporation was terminated in June.
Bomgaars is under contract to buy the former Shopko buildings in both Pipestone and Luverne, and Nielsen said relocation won’t happen until next summer, considering similar transactions are underway in several other communities.
Bomgaars is a family-owned and operated supplier with 92 stores in Iowa, Colorado, Idaho, Nebraska, Minnesota, South Dakota and Wyoming, employing nearly 3,000 people.
The corporate office and distribution center are located in Sioux City, Iowa, where the company began in 1952.
Karen Loosbrock, assistant store manager in Luverne, said Bomgaars has doubled its store locations in the past nine years.
“We’ve been increasing in size while others are struggling,” she said. “It’s just taken a lot of people doing a lot of good things in company.”
She said owners Roger and Jane Bomgaars, Sioux City, are committed to customer service in their small communities and maintain positive relationships with employees.
“They’re commonsense, ordinary God-fearing people,” she said. “They visit all each of the Bomgaars stores through the summer.”
Loosebrock has worked in the 40-year-old Luverne store for 27 years, starting with the late Merlin Lopau of M-M Distributing and later with Bomgaars since 2009.
“It’s a wonderful company to work for,” Loosbrock said.
Jolene (Christensen) VerSteeg of The Christensen Corporation said Bomgaars’ reputation and corporate values factored into negotiations.
“That was really important to us,” VerSteeg said. “Also, they’ll fill the gap with some of the merchandise that Shopko once had.”
She said there are 11 acres adjacent to the former Shopko property that remain available for development.
The current Bomgaars building will be offered for sale, and Nielsen said he’s already heard from interested buyers.