Monday, March 23, 2015

What Next for Winnipeg's Old Target In Southdale?

Southdale Target Winnipeg Closed
The first of the Targets closed in Winnipeg at the Southdale location on Lakewood. The site had been a former Zellers and now it is being cleared of anything not nailed down. The option of what goes in the location seem to vary.

The stores unlikely to locate there are Canadian Tire or Giant Tiger which already have locations just down the street. Also in the area is a Shopper's Drug Mart. The thought of a grocery store as well seems limited with a Co-Op right next door.

The word is that Goodlife Fitness might be interested in the location but it might not be the entire store footprint which is around 100,000 square feet. This might actually be a good use if people examine how busy the Regent and Kenaston locations of Goodlife are.

There is a Pizza Hut in the corner of the lot and a McDonald's on the other corner. A Shell station and other retail borders the Target. It is unlikely the entire site will merit a re-design so the Target location itself will be what is changed.

Southdale Centre is an important commercial district but it is not a mall or a power center and the number of retailers who might be interested in the site will be small.

In the month of May all of the Targets will be closed and it will be a battle between landlords to fill spaces. In some cases that won't be difficult. In other cases, it will not be easy at all. Locations like Polo Park are probably not going to have a problem getting tenants. Southdale will have to think outside the box.

Two years ago the retail sector was on the upswing and the Canadian economy looked good. A downturn in oil revenues and consumers pulling in their spending and we see Target running back across the border. How fast the Target landlords find new tenants will be an indication how resilient the Canadian economy is.

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