The coop in my city (I've been a member for over 30 years) does a very good job of bridging your first two descriptions. It is a full service grocery store, but there is an emphasis on local producers. Not all of the produce or meat is local, but much of it is, and the staff always highlights the number of local producers available on the shelves. The coop also has the largest bulk food section in the area (it puts the bulk section at Whole Foods to shame).