Oct. 21, 2024

Greg Koch is now the sole owner of 605 Running Co.

Koch has been a minority owner of the 10-year-old store since 2018. The store was started in downtown Sioux Falls by Logan, Grant and Paul Watley, who no longer live in Sioux Falls.

605 Running Co. now has a storefront on Second Avenue downtown and at The Bridges at 57th.

Earlier this year, Koch took to social media to talk about falling sales and to urge Sioux Falls shoppers to support local businesses.

“This year, it was a struggle,” Koch said. The business had just opened a second location at The Bridges at 57th, and while the owners had forecasted growth, sales were down 17.5 percent year to date in June, he said.

“It was alarming – to the point where the Watleys were ready to be done. And I said, ‘Wait, let’s give it some time.’”

That time was enough for the two stores to see improved sales – now down 2 percent year over year instead of in the double digits – and for Koch to find a path forward to become the sole owner. “We closed the gap in a massive way over the summer months,” he said.

“I’m really proud of where we have come since then,” Koch said, noting that his social media post also helped connect him more deeply to other local business owners.

“It’s really encouraging to see the community support a local business. That really gave me enough time to work out an arrangement with the Watleys, and we can keep our doors open and keep serving this community.”

Koch said he has been learning more of the back-end functions of running the business since taking full ownership earlier in October.

“It’s really exciting and nerve-wracking and bittersweet. I think it was just a matter of time before I was moving into this role in some capacity.” He wrote a blog post sharing some of his memories of working with and being mentored by the Watleys. “I think the writing has been on the wall for some time, but this year was the push that was needed.”

Koch said the storefront at The Bridges has been a learning curve. The lease there ends in March, and he plans to consider the future of that location in the new year. But he’s committed to having a storefront downtown and hopes to have multiple stores in the community.

“We’ve learned so much in terms of how to manage multiple stores and how a retail store can look with a smaller footprint,” Koch said. “There’s definitely a path forward for multiple locations.”

Right now, 605 Running Co. keeps all its inventory at the downtown location, and it might be better to have a smaller downtown space and use a different site as the warehouse, he said. That lease is up in three years.

“Our downtown store is the heartbeat, and being downtown is so vital for retail,” Koch said of his commitment to maintaining a presence there.

The stores will continue to host pop-up group runs, product demonstrations and special events. Koch said the website is updated with events.

More than anything, he continues to be grateful for the local business community.

“It’s been humbling the number of businesses that have reached out and have been happy I’ve been so honest and open about where we were and where we are,” Koch said. “I now have a regular meeting with downtown retailers every other week and just the attendance from that continues to grow and the conversations are out in the open. Local business owners, I don’t know how many people check in on them.”

605 Running Co. holds 10 local races, including the Skedaddle half-marathon in the spring, its signature event. All of the events benefit local nonprofits, with 605 Running managing the event and the timing. That’s something Koch wants to continue to grow.

“I wouldn’t have had that opportunity without the running store,” he said.

Jodi’s Journal: An ‘open book’ reveals retail’s mounting challenges