What Should Go in The Bay Spots at Polo Park and St. Vital 2025?

The word is on June 1st, 2025, the Bay as a department store will be closing their doors forever. Polo Park and St. Vital Centre will once again have large spaces to fill. It has happened frequently for Winnipeg's top two shopping malls. They have managed to survive and even thrive. It wasn't easy though and there are examples across North America where malls are decaying after losing anchors.

Polo Park has found new tenants after losing Brettons, Eaton's, Safeway, Zellers and Sears. There are still some big retailers worth looking to attract. London Drugs is moving into the second floor of Polo Park which is a big win for the mall. Likewise, St. Vital Centre has replaced old tenants such as Eaton's, Woolco and Safeway. They will now have to replace The Bay.

When Polo Park lost Sears, there were no obvious choices to fill such a large space. They turned to EQ3, the furniture store that had been in the mall parking lot, to move in The remaining space was on the first floor was taken up by popular store Zara. Even with the expanded space, the second floor was unoccupied so Intouch 24/7 call centre moved in. 

There are no obvious choices for an anchor for the Bay location. Simons, a family owned department store would be ideal but they might only be interested in one floor. They expand very slowly and they are in the middle of an Ontario expansion so might not be able to do. Their expansions have always been slow and self-financed.

Polo Park did have a grocery store for many decades it. Safeway was the last store to be located there. They surprised the landlord when they didn't renew the lease and instead located to a supersized format on Madison. While the mall adjusted and brought in other retailers, a grocery store is a very good way to bring in people seven days a week. Could it be that we see a grocer like T&T or Co-Op move into the ground floor space?

The Shopper's Drug Mart has some grocery in it as does the Dollarama. Some critics on social media have blamed the Dollarama for a spike in undesirable elements at the mall. Some have blamed the conversion of the former Clarion Hotel to a medical stay for the government of Nunavut. Attributing bad things to the Utuutaq Centre where pregnant women come for medical stays seems a bit of a reach. As for the Dollarama, there have been a few in the surrounding area for years.

In the post Covid world so much as moved online. Recent stories on the news have reported that stores are migrating to Internet-only sales. Many have said foot traffic patterns have declined. Costs to run a brick and mortar business have gone up. If commercial streets and malls have more stores migrate to online platforms, what is left? For some malls in North America it has been more entertainment options, food halls and restaurants and in recent years residential units.

Polo Park has already indicated they are looking at residential units going in on their expansive property. These will likely go up in parking areas before anything attached to the mall but that might change with the departure of The Bay. The trick is to find tenants that have customers that come in seven days a week over the course of an entire day. As mentioned, grocery stores and pharmacies meet that criteria. Fitness centers do as well in that category. Polo Park has had a 20 lane five pin bowling alley since 1959. It is things like that which have lasting power.

There has been a rumour that Cadillac Fairview was interested in bringing Cineplex Odeon's Playdium to the mall. In 2024, the company opened their first game arcade in a Toronto location. Something like that occupies about 20,000 square feet so it would not fill 200,000 feet of space of empty Bay store but it could be a start.

And what of St. Vital? There is already a gym and two grocery stores as part of the mall and on the property. It already has a movie theatre. It is possible they too could try for an arcade but it is possible they might pull in retailers such as Old Navy into the store instead of the parking lot. However, they too have a size problem in terms of filling the space. A residential option seems unlikely for St. Vital. However, a hotel option might not be out of the question.

Filling nearly 400,000 square feet of space will require some innovation and patience. It is worth noting that Canada does not have nearly as much retailing space as the United States and top malls like Polo Park and St. Vital have been surprisingly resilient. The real estate value of the malls mean that careful consideration of how space is utilized. Even parking space has become too valuable for it to be empty for large parts of the day. And while some might find comfort in a certain consistency and uniformity in malls, they will have to have something unique that you can't get from online scrolling/