Red River Co-Op to Move Into Portage Place

The signage has gone up and the parties have confirmed it. Portage Place will have a ground floor grocery and a pharmacy. That store will be Red River Co-Op. At 22,500 square foot store and a 6,500 square foot pharmacy and a staff of 57. This will be the 10th store in the Winnipeg region for the Co-Op. The timing of the opening is 2029. Construction has been ongoing all this year and the building of the Pan Am Clinic is the first priority. 

The Bay is also under intense construction and there hasn't be an update on where they are at but it is ongoing. Housing and offices will eventually be in place there and nearby and the need for the grocery store will be apparent. Initial response that a Red River Co-Op going is has been positive. There are five national grocers with their huge suppliers. It was thought that a Sobeys/Safeway had the inside track. However, the Co-Op is local and likely pushed hard to expand their store size after a near death experience back in 1983. The entire grocery business was shut down along with anything not related to fuel sales. It was a painful recovery.

Munther Zeid from Foodfare questioned the economic reasons and said if there was a market for grocery, Safeway or Safe on Foods would have moved in. He has a point save for one thing. Grocery store size. The companies he mentions builds new stores that are 40,000 square feet. The South Osborne Safeway has a legacy store at 19,000 square feet. It is hanging on because it has no competition and a parking lot.

None of the biggies want a store with no dedicated parking lot. So why does Red River think they can do it? The pharmacy. There are only a handful of pharmacies downtown even with a few thousand residents living nearby. The few Shoppers and Rexall are all south of Portage Avenue. Red River Co-Op notably kept their pharmacy as a stand alone location on Main when Giant Tiger took over their lease (which they have since abandoned) on Main Street. Pharmacies make money. And they are built with layered security everywhere. 

Know what Foodfares don't have? Pharmacies. Zeid knows groceries better than anyone. He has been on the frontline for decades and fighting shoplifting harder than anyone. He knows what he talks about when it comes to trying to make a living in the grocery business. The pharmacy and its safes and locked areas is a good cushion for profitability. Thousands of students at the University of Winnipeg, student housing across the street by the Winnipeg Art Gallery, housing behind Portage Place and new housing onsite atop Portage Place provides the population base to build a store customer base. 

The lack of a food court in Portage Place should discourage the type of congregating for the purpose of drug distribution. And thousands of patients a day at the new Pam Am Clinic should create the safety of crowds that is seen when hockey and concert events happen downtown. Harassment of people will have dozens of people calling 911 and filming it. Likewise, True North properties have zero tolerance for encampments or people taking up residence of doorways. Seriously. Watch security make themselves present if people linger in the Square for purposes other than commuting or commerce. Also, get in a fracas at Canada Life Centre, find yourself banned for life from all events there. Malls like Polo Park also institute bans so I expect to see Portage Place ban people from the property if they are violent or shoplifting. Technology will be used to identify people who are consistently a problem.

Low income people have to be protected and the work with the community patrols will help with people who need assistance. Housing geared to income is part of what is going up in the area but success with come from a mix of people which could include tourists in hotels, visitors for concerts, conventions and sports. 

In keeping with the standard set ups for most urban groceries, there will be one entrance in, delivery, deli, bakery, meat, dairy and produce sections. If there is any area I feel they might skimp on, I would say sections of ethnic and specialty stuff. This probably suits some of the ethnic convenience stores that have tried to carve out new niche areas for themselves downtown and elsewhere. Self checkouts are likely to have two forms of control. The first will be scanner exiting the checkout and the next will be receipt control. It is unclear whether the store will exit to the front street or inside the mall. Staples found it was better inside. One thing is clear is that there will be another line of security for the mall and apartment entrances. And street patrols will be plainly visible.

Things have to be a multi-pronged approach to make the area successful for housing, retail, recreation and healthcare. If people feel there are no go zones where they could face danger, they will resist going there. In some cases though, you will have no choice. If you have a knee surgery at Pan Am, you will be there are 8 AM. Likewise, many people work downtown and not some suburb. They need to know they can ride the bus without fear, park their cars and find them later and go outside for lunch without the chance of homicide or being swept up in arrest.

I suspect there will be a lot ways this happens and it will be black by block that are reclaimed as neighbourhoods. A grocery is essential to that and the amount of spending to convert Portage Place and the former Bay building tops $1 billion. This isn't just a luxury mall and luxury housing. It is a comprehensive reconstruction and not a trip down nostalgia lane. It is trying to build housing in the area and make sure there are services to support it. The mistake at Portage Place is the investment stopped after the 1980s. The money earned was delivered to The Forks for their ultimate success.

The Re-Newed Expansion of 7-Eleven in Winnipeg

 

Southland Corporation in Dallas had been operating stores since 1927 but by 1946 had re-branded as 7-Eleven to reflect their general operating hours. It began to franchise in the 1960s to various countries such as Canada. The first store in Canada would be in Calgary with others that quickly followed. Unbeknownst to many, 7-Eleven has been Japanese owned since 1991.

The history of 7-Eleven in Winnipeg goes back to 1969. The first location in Charleswood was before the municipality even joined the city in 1972. The first 7-Eleven locations were built in Alberta and only a few months later Winnipeg's was built on Dale Avenue as part of the Westdale Shopping Mall. By 1979, there were over 40 stores across the city. Initially, they were operating from 7 am to 11 pm but a number of stores operated 24 hours a day except Christmas and a few other holidays over the years where they closed all day or were of reduced hours.

Robberies were awful at any store that operated 24 hours. This included Domo gas stations, Mac's and 7-Eleven. Some stores reduced hours because Winnipeg was near the worst in Canada for this. The police wanted the stores closed at night but conveniences stores pushed back. The company responded in 1976 with some of the security measures that everyone today is familiar with. The 6000 stores across North America now had limited amounts of cash at night. By 1980, the timed safes were in place. The first lottery tickets were sold in 1971 in stores, a first for Canada.

It may be hard for people to remember but Slurpees were behind the counter and poured by employees from 1969 to late 1980s. It was very limited in flavours in that Coke and Sprite were the only consistent drinks. Hoagies first appeared in the 1980s. And Slurpees in Canada were different than the U.S. in that they were more icy while in the U.S., they were more syrupy.

Sometimes it was 7-Eleven that led innovations and sometimes it was different regions and stores adapted to the areas. Microwaves introduced at stores in the very late 1970s and 1980s made it possible to have heat and eat items. Burgers, hotdogs and hoagies were popular in Canada. In Japan around the same time it was rice balls (o-nigiri) or simmered foods (o-den). In the U.S. it was hotdogs and burgers. I would think that chicken has really taken over at 7-Eleven over the last several years.

In 1991, the family that owned majority shares of 7-Eleven tried to take the company private and was overwhelmed with debt. Even selling some divisions was not enough to bail them out. In Canada, we probably didn't know they were even in trouble. The Japanese franchise was probably surprised how tenuous the parent company was in Dallas. Because of the strength of the Japanese yen, they were able to take majority ownership of the company and several years later made it a full subsidiary.

Most Canadians still don't know that the ownership change happened. Nor was there any sense of who directed how operations were to be run in Winnipeg or Canada, for that matter. There does seem to be a general manager in Winnipeg for the corporate stores although there is a distribution center on Bentall. This begs the question of who makes decisions for the stores on say, what newspapers should be carried or what local food needs to be on the shelves. One example, in 1979, after the Winnipeg Arena was expanded for the NHL's Winnipeg Jets, tickets were sold to games for a discount.  The Charleswood location became a prime spot to grab these tickets. In 2025/2026. 7-Eleven came on board as a Jets sponsor and a Slurpee machine now resides at the Canada Life Centre and store ads appear on the broadcasts. In the past, only the Dallas Stars got that ad support for a hockey team. Not surprising since that is where the company was founded and still operates the U.S. base.

In the most recent year, 7-Eleven Canada has tied to evolve a small restaurant style area that serve alcohol. In Winnipeg, it is only one location on Ness and that location isn't even open 24 hours. In Ontario, they have far more testing this out. And it is a test. It might not work. Sometimes 7/Eleven chases a trend as it did with renting videos back in the 1980s. It took some years but the convenience store retreated from sales when big players like Blockbuster, Jumbo and Rogers took over.

Convenience stores like 7-Eleven have always had coffee but even those use to be poured by store clerks at one time. Then small coffee stations were set up with coffees rotated by clerks. Now the machinery and choices for coffee are a lot more varied.  It is uncertain how many people get coffee at 7-Eleven in Winnipeg compared to competitors. To be sure Winnipeg is very much a Slurpee city unlike any other in the world. It isn't just corporate kiss-up when 7-Eleven says Winnipeg is the Slurpee capital of the world. It is a phenomenon unlike any other place on the planet. In some stores there are a dozen or more choices. In a Japanese 7-Eleven they are likely two machines and they aren't going to be Coke and Sprite.

Magazines are no longer in stores in Canada. They used to be positioned in their own row and newspapers were right beside the store. Some 7-Elevens in Winnipeg used to have Toronto Stars, USA Today and every national paper along side the local Free Press and Sun in abundance. Newspapers are now exiled to the corner.

Pay phones were once inside, then moved outside and now gone altogether. Banks vie for space for ATMs inside 7-Eleven. Lottery stations are now right beside the door. The formerly clerk supplied food is now self serve and deliveries have exploded in every 7-Eleven.

Canada's Circle K attempted to take over 7-Eleven worldwide last year and failed in part to the difficulty it is for international companies to take over Japanese ones. Some were saying Japan might be invoke national security reasons since convenience stores are so depended on in Japan. Oddly enough, 7-Eleven continues to acquire stores in the U.S. but that same courtesy does not extend the other way.

Regardless, it appears both companies are cutting marginal stores and ones subject to safety issues. Winnipeg has seen around 10 stores cut in recent years and management has said some of it is because of crime. In fact, they put a number on how much product was being removed from stores and it was in the hundreds of thousands of dollars. That is unsustainable and while corporate critics might not have had any sympathy, this level of theft was also taking down mom and stores and leaving the area barren of any grocery or convenience stores. 

According to Mayor Gillingham in his State of the City address, 7-Eleven has spoke to him about an expansion of the company in Winnipeg. After the closure of the aforementioned locations, it is curious what the company has in mind. We can take our clues from some information released back in February as well as world reports on 7-Eleven. In terms of the former, 7-Eleven has indicated they are open to franchising opportunities. This is interesting because they are very much a corporate store company. In Australia, the company took over the entire Australian franchise as part of corporate takeover. In Canada, they appear to to looking at side by side operations.

So what does that mean? It means that we could more of a saturation of stores in certain parts of the city. For example, Portage Avenue has two stores along the entire run from Portage and Main to Headingley. In Tokyo, that would be unheard of. The company would try and place stores along major transit hubs and shopping areas. Suffice to say that places like Charleswood and St. James with only four stores seem a little light in terms of presence. 

There is no getting around the shoplifting issue in Winnipeg and around North America, for that matter. 7-Eleven is at the forefront if security for convenience stores in the world so expect even more efforts to reduce theft and identify those who are responsible. It will be positioning any new stores to have the best chance of success but also security. Given how many university students are off Pembina Highway, it is a missed opportunity that 7-Eleven has no stores aside from the one. This seems a perfect opportunity for franchises. And let's not even talk about how underserved the east side of the Red River is. 

An opportunity for franchisors to do really do well with a company that is iconic in Winnipeg is good. In some cases, some areas are crying out for any kind of convenience store. There are literally none and certainly not 24 hours. There could be opportunities as well for stores inside malls, airport and sports facilities. 

This doesn't have to be all bad for existing convenience stores. There have been several that have opened up and they are finding niches that 7-Eleven can't fill such as being on the ground floor of apartments, offices and the like where they would rely on foot traffic more than car traffic. These stores also cater to niche areas such as ethnic foods to sell or to serve. 7-Eleven may be a lot of things but not a seller of ethnic foods or big on foot traffic. Even St. James has seen at least three convenience stores that fit the ethnic label open in the last 12 months.

From the government side things, the province has to keep pushing on secret property agreements that protect companies such as Safeway/Sobeys having any competitors set up near them. This sounds like it might apply to just big stores but any agreements of exclusivity need to be known and hoarding properties is anti-competitive and should be dealt with federally by the Competition Bureau and by the provinces to make sure these secret agreements see the light and are handled by the municipal board. As far as the city goes, they need to ensure security for 24 hour stores and that may entail more police visits, safety audits and sharing of information. A lot of trouble is sometimes organized or the same people.

Some might not find an expansion of 7-Eleven exciting but if the attempt is to make the stores as essential as they are in Japan, that mean offering food and service at prices that are compelling. For example, the egg salad sandwich in Japan sells for 200-300 yen. That is about $2.50 Canadian. The egg sandwich in Winnipeg is $5.00. We need to keep competition up in Winnipeg because those type of prices for 7-Eleven are typical for a number of products in Japan.

They key to vitality in many cities is the diversity of options for those who live in it. Think of the bodegas of New York or the bakery shops on Paris. Price competition competition comes from a multitude of suppliers. If we ever want to have $2.50 egg sandwiches, a Japanese-style surge of stores will help.

Winnipeg Sun Believes Removal of Covenants Has No Effect on Competition

The December 13 editorial of the Winnipeg Sun believes competitive food prices only come from tax cuts. Removal of gas tax, business tax, property tax and income taxes. There is no mention of price fixing. Even if all those thing happened, the grocery and suppliers have fixed prices for bread and other items to that point that companies like Aldi believe the game is fixed here. And it is.

Large grocery stores have agreements to keep empty store faces or other competitors from setting up anywhere near them. Such actions with surely have U.S. authorities such as FBI kicking down the doors were it to happen in the States. The Sun says the Competition Bureau says the restrictive covenants don't restrict competition. In fact this is what the Canada's agency says:

A restriction on land that prevents a purchaser or owner of a commercial property from using the location to operate or lease to operators of certain types of businesses that compete with a previous owner.

The UK and New Zealand have restrictions on grocery stores from hoarding land and forbidding others from buying or using it to compete with them. This has NOTHING to do with taxes. Nothing. 

In Brandon a Sobeys was closed in 2017 and Sobeys has leased the property twice for five years terms to prevent competition. Above is a picture of that store. The Sun believes this is the result of overtaxing? Shindico said this was to prevent competition. Does the Sun believe this property should be restricted from sale or use? Do they even think this is a good idea? Why would Sobeys do this if they thought it didn't limit competition?

Antitrust is a real thing. It is private enterprise manipulating prices and competition. It happened with bread and it happens with property. The Sun says this doesn't exist? 

Prices are indeed affected by many things. But it just isn't government taxes. It is sometimes companies inflating prices, putting the thumb on the scales (or the packages) and they have been caught red handed. However, an empty storefront leased for years doesn't raise any eyebrows. It is the government's fault. 

Canada's Couche-Tarde-Circle K Attempting Takeover of 7-Eleven

Getty Images / 7-ELEVEN, Inc.

It sometimes comes as shock to North Americans that 7-Eleven is owned by the Japanese. It has been since 1991 when it bought a bankrupt Southland in Dallas, Texas that owned the company. The late 1980s and 1990s saw major purchases by Japanese companies of assets in North America. At the time it caused all sorts of fear. However, Sony and 7-Eleven among them, have been  good owners of these assets. Perhaps, they might have been run better because they were Japanese.

At the moment Nippon Steel is trying to takeover U.S. and both Republicans and Democrats are vowing to block the deal. The U.S. steel manufacturer says that without the takeover thousands of American jobs will be lost. With this in mind. a decision either way on the steel purchase could factor in on the 7-Eleven purchase by Canada's largest convenience store owner. If the steel deal goes through, questions will arise about the ability of takeovers going the other way. If the deal doesn't go through, Japan can make similar arguments about why the 7-Eleven deal should not go through.

Circle K has been around as a brand in western Canada since 2018. It was part of a re-branding of the Mac's Stores that dotted the city for decades. Mac's logo once had been a cat's head that eventually became a red owl. Circle K's owner Couche-Tarde essentially means "night owl." 

The first acquisition bid by Circle K has been rejected as being too low and not taking into account antitrust. The combined assets of 7-Eleven and Circle K in North America could bring calls for a sell off of some stores and gas stations. A Circle K and a 7-Eleven on the same corner from one another would hardly be competitive. 

People in Winnipeg are familiar with this with Sobeys and Safeways using the same flyers while often being across the street from one another. Sobeys was required to sell some stores in Winnipeg to complete their purchase but there are still many stores very near one another. This is the case across much of western Canada.

The owners of 7-Eleven have asked the government to declare the company part of their national security core assets. The Japanese government seems reluctant to do that since the company essentially bought a U.S. company and asking that it be declared forever Japanese could hurt other trade. As mentioned before, Nippon Steel's deal for U.S. Steel depends on each country mostly staying out of it except where it comes to antitrust.

While 7-Eleven might have the same owner in Japan and Canada, they operate with their local customers in mind. However 7-Eleven has far fewer locations in Canada than what is found in Japan. In Canada all magazines have been purged from the stores. There used to be a whole row. Japanese 7-Elevens still have a row of them. It is not uncommon to see 20 or 30 people casually reading inside stores. Some stores are dropping the magazines but it is at a slower pace that it has been for Canada.

What Japan has purged are Slurpee machines in some stores. They just not big sellers compared to Canada. In some stores there a 20 flavours of Slurpees lined up along with the Big Gulp dispensers. Japan sets up more space for food sales, especially, rice balls known as onigiri. Chicken and other items are fresh every day at the store. With literally thousands of stores in Japan, deliveries are made multiple times a day of product. Canada has under 620 7-Eleven stores for the whole country. Winnipeg has many stores but at least four due to issues of lease or crime have closed.  The city could lose ten more and crime has been blamed by top execs of the corporation.

Canada has its own executive offices of 7-Eleven in Surrey, B.C. and world-wide executive offices are in Irvine, Texas. Ownership and management of 7-Eleven is in Tokyo. Canada has it's execs appointed by world head office. For the first time in 15 years it is headed up by a Canadian.

All things being equal, a takeover of Circle K by 7-Eleven is just as likely a scenario. The issues of antitrust would still apply. The 7-Eleven company has outbid Circle K a number of times for U.S. assets. The only reason Circle K appears stronger is that they have been assessed as having more market value and are favourable to shareholders.

If Circle K takes over 7-Eleven, it might eventually get approved by their board only if there is a plan that the U.S. and Japan and other countries can agree on. In Japan the Fair Trade Commission could order some aspects of 7-Eleven divested such as banking or other aspects of the business. However, since Circle K is not in the Japanese market in a big way, it will be curious what concerns they might raise.

While 7-Eleven is a very successful company, it is has underperformed the market for five years. It is has not increased shareholder value despite acquisitions. The market valuation for the company is below Circle K which has had very successful shareholder increases. There are shareholder activists in 7-Eleven who are pushing the company to do better. They might not support the Circle K bid based on not enough money offered but they won't support the company running to the government to thwart the takeover based on nebulous national security claims. Nor will the government likely allow two Japanese konbini companies to combine to take a 60% presence in Japan just to keep out Circle K.

As good a company as 7-Eleven is, the low shareholder value makes them vulnerable. Couche-tarde has asked for a meeting to see what the board of 7-Eleven might be looking for. It is a meeting that that they can't easily rebuff. If 7-Eleven itself is looking for new acquisitions around the world, it can ill afford to look as if they can buy assets and no Japanese asset is available for sale due to their efforts and government protection. 

Make no mistake, the thousands of 7-Elevens in Japan have become part of the culture and a critical supply chain provider of so much. I was present when in Japan when the purchase took place in 1991. The stores were popular but in the last decades they have taken off and are clearly everywhere. Other konbini stores that are prolific are FamilyMart, Daily Yamazaki and Lawson. In my hometown on Tsuru, I had a Daily store and a FamilyMart within walking distance. I preferred FamilyMart for their fresh sandwiches. However, both had fresh foods I liked that they were close. A 7-Eleven was about a 20 minute drive from by scooter so I went there from time to time. Back then the Slurpees were limited to a few flavours and like a lot of Canadians outside Canada, I felt the Slurpees were different and not as good. I have felt this way about Slurpees in the U.S. as well.

As far as the rest of the store went, it had snacks and product not found in Canada. Fresh sushi is always there as well as rice balls. However, at Japanese 7-Elevens you can buy concert tickets and pay bills in addition to the ATM. All Japanese stores have free Wi-Fi which is a popular attraction.  It doesn't appear to be the case in Canada or the U.S. as a corporate-wide thing. It is just a few examples of how service is all about how Japanese 7-Eleven's operate.

Canada does innovate in ways unique to its market. Throughout Canada, a large number of stores will be serving alcohol in a small lounges. In Winnipeg that will be at their Ness location where 10 seats will be reserved for 18 and older for cider, beer and wine. The area will be open 12 to 11 every day. Some people thought it was a bad idea but some people thought movie theatres and alcohol was a bad idea and today Cineplex in Canada outperforms the market.

Some 7-Elevens in Canada sell gas but it is seen less in Manitoba than other areas. Circle K in North America is more likely to be a seller of gas. Another offer is likely for 7-Eleven  from Circle K soon. However, it is entirely possible that Circle K makes an approach to Mitsubishi to buy Lawson instead. The convenience store subsidiary is enormous as well and might be more amenable to a purchase offer.

Regardless if Circle K and 7-Eleven become one company, it is likely they will continue to innovate and offer more fresh food. In Winnipeg, the big question is how will 7-Eleven and other convenience stores deal with the issue of crime. In Japan crime is not something most of the stores have to worry about. In much of Japan, vending machines are everywhere which seems impossible in much of Canada. 

If the companies ever combined in Canada, it would mean the 2,100 stores of Circle K and the 620 stores of 7-Eleven would start to have the synergy that Japan has to keep prices down and deliveries coming a few time a day. It still would come close to the amount of stores Japan has and how much competition there is.

We Need Aldi Grocery Stores in Winnipeg

Aldi is the name of the hypermarket grocery from Germany that has transformed European and American grocery stores. A Canadian branch of the store seems as elusive as ever. Homegrown versions have not really emerged. The grocery sections of Giant Tiger and Dollarama help but they only offer so much. 

The Canadian government is seeking out discount grocers but so far seem to have had no success. The reasons are varied. One big one is that there are far more dominant grocers here and they have been found to price fix with help from suppliers such as bakeries. Dempsters was recently fined $50 million over this but it took 13 years of investigation and no further actions were contemplated. Another investigation into meat prices is underway but it is anyone's guess how long that takes. Likewise, there is an investigation about property being used to keep competitors out but if it takes a decade to decide, it doesn't encourage companies like Aldi who see the roadblocks.

Alternatively, Aldi has bought grocers in the United States including some big ones such as Winn-Dixie and Trader Joe's. In Canada, there are enormous food groups where there is very little in the way of sellers. It is quite possible that a company like Aldi might make an offer on a group like Giant Tiger.  However, they are not going to come to Canada if they feel the fix is in. Everyone is well aware of the fiasco of Target. Most of the other food ownership groups are massive. Even the Save on Foods group in the west is buying U.S. grocers so there are no easy entries for newcomers.

Corporate concentration has always been a problem in Canada but the Sobeys takeover of Safeway often left two stores of the same company across the street from one another. Not much competition if both have the same advertised sales. While some stores were forced to be sold, there were no price leaders. For example, Red River Co-Op that purchased some stores does not lead as a price leader on gas or groceries. It hopes that cash dividend is enough to attract shoppers but the starting price point can be high. Save on Foods moved into the Winnipeg area and while they offer different grocery experiences, the price point is a higher one than say Superstore or Walmart.

Some Safeways and Sobeys have become franchises of Freshco. They have owners but are part of the supply chain of Safeway/Sobeys. They can be cheaper and offer some local selection but there are not enough of them and they still remain part of large food group organizations. Likewise, No Frills are too few to really make a difference and are part of the Loblaw's/Superstore food organization. Local ownership of these stores does not make them similar to a true discount store with their own supply chain.

We actually have some locally owned stores in Winnipeg such as Foodfare and Family Foods. They fulfill important roles in having stores where others don't have them such downtowns or smaller stores than the typical Safeway and the like. Specialty stores and ethnic stores are also important in having different supply chains from Africa, Asia and Europe. Most of the small stores are simply not located where a discount store like Aldi needs them.

Aldi likes to be where the other stores are. They are not afraid of Walmart, Costco or any other grocer. They are 15% less than those grocery stores. Ideally for Aldi, they would be able to get a place in the big box store malls close other grocery retailers. The problem is as has been described by those who follow this is that big grocery groups in Canada take holding positions in real estate for these big malls and ensure that no other competitor can come to that mall. That is inherently anti-competitive and is being looked at as something that has to be remedied. But how long that takes is anyone's guess. In the U.S. I suspect the Justice and Commerce department's would be engaging anti-trust right away.

Aldi started in 1961 in Germany and actually is two different companies from two brothers who operate under same name with slightly different logos. They first opened in the U.S. in 1976 in Iowa and have been flying below the radar until recently. They are opening hundreds of stores a year in the U.S. now and have reached 2,000 stores. A typical Aldi carries mostly it's own brands. They are about 18,000 square feet and carry around 1,600 products but no fresh meat, bread of cheese. Other grocery competitors are 35,000 square feet or bigger and have 40,000 products.

Aldi does have a world rival modelled after itself and now larger world-wide. It is Lidl, also of Germany. They are rapidly expanding in the U.S. but will have a long way to go to catch up. They have as wide a reach all over the world as Aldi. Alas, Canada is not on their horizon. With a population of 41 million and growing, Canada is not a tiny market nor a mature one. There is room for a discount grocer.

Aldi started in a small state. Perhaps it is time they looked at a small province and got things started in Winnipeg.

Giant Tiger to Close Two Winnipeg Locations

When Sobeys took over Safeway in 2013, they were forces to divest some stores to get federal approval. One of the Safeways sold was at 1441 Main Street. Red River Co-op decided it was a good time to get back in the grocery market and picked up some of those locations such as Grant Park and the Main Street location.

Things seemed to be doing well with the Red River Co-Op but then managers indicated that the landlord did not re-new their lease and lo, and behold Giant Tiger was the new tenant. Red River was so perturbed that they set up a stand alone Co-Op pharmacy in the building next door. It remains to this day.

It is being reported that Giant Tiger is looking to close the same store they fought so hard to get on Main Street this July. Also to be closed is long time Giant Tiger at 305 McPhillips. This might be cleaning up a but following the purchase of the franchises of the North West Company who had western Canada Giant Tigers. The corporate re-purchase could also have nothing to do with things. It could be the security of the stores is in question and that the company feels they can't can't make money there anymore. The point is we will not know. However, what will happen is that Giant Tiger will go from 10 stores down to 8. And Main will lose a grocery that a lot of people use.

Will Red River Co-Op be first in line to go for the property again? Or will the grocer even trust the landlord again? They have kept the pharmacy on Main even after all this time. It seems terribly unfair to this part of Main Street that they keep losing retailers. Perhaps we will get some clarity as to the reason.

The other location a 305 McPhillips has been in place for a long time. Is security there an issue as well? Who knows? Some stores in this city are under siege. Food Fare is constantly have difficulty. Staff and customers are getting hurt. 

Expect more news on this and more in the coming days.

Do Boycotts Work?

Do boycotts work? In short...yes and no.

One of the more prominent boycotts was against South Africa and apartheid. It lasted 35 years and even now, one can question whether it was effective at bringing change on the policy in 1994. To some extent, South Africa was not hobbled by the boycott. They made the change in large part because they chose to make it.

The Montgomery bus boycotts in the U.S. over Rosa Park being asked to move in a segregated bus was more effective and in 1956, the buses in this part of Alabama were integrated. Change happened quicker because of the effectiveness of the boycott and the inability of the bus company to operate with so many customers not using their service.

That is the rub of boycotts. If some people continue to do business with those being boycotted, the ability to change things diminishes. Case in point, sanctions and boycotts of Russia have not compelled them to change their ways on territorial expansion or rigging world games for their athletes. Too many have bought their oil or sold them weapons so that that the economic effect has been blunted.

This is not to say that there is no choice but to do carry on normally with organizations and countries. People make choices all the time. We just don't call it boycotts. For example, some people stop going to a store when they stop carrying the brand they like. It helps to tell a company why you are not seeing them anymore. If they stop carrying Sprite, let them know you won't be back till they do.

A boycott in Canada of Loblaw's for one month may or may not be effective if people don't know what all of the companies owned by the parent are. For example, if you don't go to Real Canadian Superstore but go to No Frills, you have failed. Some people have said straight out that while they are upset with Loblaw's, they are still cheaper than other options.

The big question is whether a boycott is to change behaviour or to just hurt sales numbers of an organization. If it is to change behaviour, it might work if everyone stays on message. In Canada, the boycott against Loblaw's has people advocating for taking things from stores which organizers do not want to associate with. If organizers meet with Loblaw's they need to focus on things like discounted items. 

Loblaw's has gotten so big that a boycott will be less effective than more timely investigations of grocers and suppliers fixing prices as we saw with bread. It took the government 13 years to fine one company $50 million. That is painfully slow. They are investigating meat now but if we go on the same timetable, it is worth it for a company to carry on like there are no consequences. Think about that every time you buy chicken, beef and pork. A boycott does little because the price is the same across different companies by design. Only government regulations can get to the bottom of it because competition doesn't exist.

Palestinian supporters have tried a BDS campaign against Israel. It stands for boycott, divest and sanctions. Three countries have taken up the cause and a few others have broken relations with Israel in last few weeks. The 20 plus year campaign though pre-supposes that only Israel is to blame for what is happening and the answer is for Jews to leave the territory. It is couched in terms of de-colonization and that Jews have no right at all to the area. They are settlers. Things quickly dissolve into anti-Semitism. Any two state thinking is dismissed. Any thinking that Hamas Palestinian leaders might try something different than pushing Jews into he sea is not accepted.

Subsequently, after 20 years plus, Palestinian BDS campaigns have been largely unsuccessful. A boycott is not going to force Israel to do anything. And it deceives people into believing that no diplomacy is needed. All that has to happen is for Israel to be abandoned for everything to be right in the world. The Palestinian/Israeli conflict will only reach some sort of outcome through negotiation. It is unlikely either side will achieve total success militarily or through sanctions and boycotts.

Presently, the Israeli government believes it can defeat Hamas completely, That seems a tough nut. The most meaningful peace agreements they have come by historically has taken great effort, timing and negotiation. And Hamas should not take comfort in their strategy with protests at campuses in North America and elsewhere. Israel will still defend itself if attacked.

So to sum up, boycotts can work if the objective is to change behaviour and the demands are focused. But much of the time demands are unfocused and angry and least of all, sympathetic. Having said that, I will shop elsewhere for the month of May than Loblaw's if no other reason than I believe they and others can do better. However, I am also pushing the federal government to not allow any more mergers that would not help consumers. I especially want the to to use the regulatory authority they already have to stop uncompetitive practices.

Renovations of Grocery Stores all Over Winnipeg- Charleswood

Even as the pandemic continues, it seem every grocer has been renovating. The need for pick up and collect, delivery and other service needs is undeniable. Walmarts took over their auto sections to make way for this service and almost every other grocer/merchandiser is doing the same. Safeway/Sobeys and Real Canadians Superstore/Extra Foods had too much redundancy in the market and too much corporate exposure to newcomers Red River Co-Op Grocery and Save on Foods. Hence, the conversions all over the city to Fresco for some Safeway/Sobey's locations and some No Frills for Extra Foods locations. 

Charleswood Safeway in the picture is getting a makeover inside and out. Most Safeways have had alterations inside for their produce areas as well as deli but many have not had the full exterior and interior work we have seen going on nearly everywhere. Tuxedo Safeway is also going through it.

Red River Co-Op Grocery has new buildings going up at Seasons of Tuxedo and St. Norbert. There probably won't be a grocer that hasn't had a makeover by spring. And at that time, we might be out of the pandemic but will we have created new habits of click and collect or delivery.

Food prices have spiked and it has been bad but hopefully, a lot of of competition into the new year will see Winnipeg benefit in having better prices. A vaccine can't come soon enough.

St. Vital Centre in 1986

From the air in 1986. St. Vital Centre after being built in 1979. The anchor stores were Eaton's, The Bay, Woolco and Safeway. Corrected from 1979 listed date earlier. In the middle of the picture the add on of the movie theatres was completed. And as noted by a reader, Pizza Hut came to Winnipeg in 1986. That location has since closed.

Four Safeways to be Converted to Freshcos

The Safeway at McGillivary and Pembina last Thursday on one of my last walks. It will be the site of one of the four new Freshcos.

Some time ago I reported that Safeway/Sobeys was going to be converting stores into Freshcos. So far Winnipeg has two which are operated as franchises at Regent and Lagiomediere and at Jefferson and McPhillips.

Aside from the Pembina location, the other three Freshcos will be Safeways at Niakwa Village and on Sargent that will be converted to Freshcos and a former location at Bronx and Henderson that has stood empty since 2015 will be renovated and also be a Freshco but not till 2021.

All Freshcos will have pharmacies and be locally owned. The re-opening of the Bronx and Henderson location will create 100 new jobs while 100 jobs will be retained with the other stores.

There were far too many Safeway/Sobeys when the merger took place. Even when the combined company was forced to sell four stores by the federal government they still have stores across the street from one another operating under the same flyer and the same corporate policy. It made the overall company vulnerable to new competitors.

The benefits of local ownership have been demonstrated often by having Food Fare, No Frills and others here. They choose to sponsor different things, give chance to other products and more keyed in to local needs.

Obviously some union people will be affected. They will lose their jobs with the corporation and I'm assuming will be re-hired by the franchise owner. This could be a good thing or a bad thing depending on wage or working conditions. It will depend on the person. However, in the end there will be more jobs to be had that what existed before.

In all, some great news and for Winnipeg consumers, it could mean better prices overall for groceries.

Wall Street Co-Op Store 1957

From 1957 to 1983, Red River Co-Op ran grocery and pharmacy stores in Winnipeg. The 20,000 square foot store on Wall Street was the first and last of the grocery stores to operate before the Co-Op got back into the business in 2014.

The Red River Co-Op got its start in 1937 as a fuel supply company and had a number of coal yards and gas and diesel supplied from the Federated Co-Op from mines and refineries in Alberta and Saskatchewan. By the 1940s the fuel yards added general stores.

In the post war boom, grocery stores were becoming bigger and Co-Op felt they had enough members and demand and built one of the larger grocery stores of the day on Wall Street for around $750.000. The store had more in common with a Walmart in that it had general merchandise and a pharmacy as well as appliances. There was also a credit union, gas station and farm supply building. At the time there was only 4000 members of the Red River Co-Op but this investment proved to be very successful.

Other stores followed and the Co-Op grew although slower than some other areas in the west. Still, by 1978 there were eight grocery stores in Winnipeg and surrounding area. In 1979, Red River Co-Op made a critical misstep when they built a $10 million Home Center that was around 5,600 square feet at McPhillips and Stardust.

One year later Winnipeg had one of the worst years since the Great Depression. It was in 1980 that Swift's, Canada Packers and Winnipeg Tribune collapsed and the province sunk to numbers of unemployment, stagnation and inflation all at the same time. Red River Co-Op was in debt and bleeding money as people left the province.

The grocery business collapsed and only the Wall Street location above managed to hang on till 1983 when it too closed.  Red River Co-Op held on as a fuel supplier and nursed itself back to health for decades after. At its worst, Co-Op was down to three gas stations and most didn't see a future for it.

However, each Co-op gas renovation would soon have a convenience store and after years of expanding to more location, they had become a confident retailer again. They got back into the grocery business when the merger of Sobeys with Safeway forced a sale of assets by the federal government.

It remains to be seen how Co-Op will look in the future. Winnipeg is far more diversified than it was in the 1980 recession. And this helps businesses like Co-Op stay viable and gives good returns to those that use it.

Osborne Village in 1975

In the very early 1970s Osborne Village was very much in flux. The area around Roslyn Road remained popular as it connected to Wellington Crescent. A mix of nice home and high rise rentals popped up including the very new 55 Nassau at 38 storeys. However, some other stately homes were falling into disrepair and being turned into rooming houses. Some parts of River as as well Stradbrook got a lot rougher.

Osborne Street itself saw a change in businesses. At least two or three families began buying property and attracting renters and operating their own businesses that would given Osborne its cache in years ahead.

Most of the towers along the Assiniboine or the Village were very new in 1975. The density jumped in ways that were surprising. In today's day and age it might not happen with so many complaining that no development should happen in their own neighbourhoods. Even the present Safeway had its detractors although safe to say it has been essential in making Osborne Village the success it is.

Good design is important and there can always be debate on that. However, we have come to a period where no change at all ever is becoming the default position. At least four own neighbourhoods. Then 30 kilometer speed limits, speed bumps and road closures to through drivers are all the wage while same said neighbourhood wants a 12 lane 150 kilometer speed limit to get to the gates of the closed community.

The very new Winnipeg Convention Centre pre-expansion days is seen as well along with the very new Lakeview Square. Beside the Great-West Life building is the former Labatt's brewery. It became insurance company's second office on Osborne in the 1980s. The handsome Granite Club Curling Rink is visible beside the river across from the Village.

Osborne Village has gone through several incarnations including now but it has allowed density development that has made it vital over the years. The future is probably how to keep the neighbourhood safe and secure, affordable and avoid luxury blight where places are shuttered just because the rent is too high.

Kildonan Place Mall to Expand

The three large Sears locations have remained stubbornly closed at Polo Park, St. Vital and Kildonan Place. It stands to reason that all of them have been looking for a large size replacement or at the very least two retailers to share the holes left by Sears.

For Kildonan Place, it is second time looking for a replacement after Target closed in their mall. This triggered one of their largest and expensive makeovers that added H&M, Marshalls and several others to the space. The closure of Sears must have made them say "not again."

However, with this closure might have come opportunity. The original Kildonan Place built in 1980 had a Dominion grocery store. The stores closed in western Canada leaving malls like Polo Park and Kildonan  scrambling to fill the space. Polo Park got a larger Safeway and Kildonan just replaced with other stores.

Today's malls do not have a large line-up of other large retailers ready to jump in the moment a competitor falters. Heck, with the closures of Payless and HBC Home/Outfitters and others, there are a lack of even mid to small retailers ready in the wings.

The closure of Target and the takeover of Safeway by Sobey's has represented opportunities for grocers to enter the Manitoba market who are new or have been on a long hiatus. Co-Op stores via the Competition Act took over some Safeways and now operate three grocery stores in Winnipeg through Red River Co-Op. The Grant Park location is presently going through a major makeover. The other new entrant is British Columbia-based Save on Foods which took over McPhillips old Zellers location, the old Polo park Future Shop location and built a band new Bridgwater location.

As for the biggies. Extra Foods stores have been converted to franchise-owned No Frills stores and some Safeway/Sobey's stores are being converted Freshco grocery stores. It has all been a bit of a whirl. Suffice to say though that grocery stores still have a bricks and mortar presence even in a delivery world.

Kildonan Place's old Sears is set for a grocery conversion. Best guess by most people is a Save on Foods location based on exterior design although no name appears just yet.

The store would face out to Regent based on the designs being presented to the city this week. As big as the grocer is though, the mall had some extra space as well as ideas left. It would appear the back space facing out to Reenders will be a new space and an upgrade for Cineplex Odeon movie theatres. No word on whether it will be the same six theatres or more.

Another huge improvement will be the food court which has always been undersized given the square footage of the mall.

It will be quite a sizable food court when done and much more of a gathering spot than what presently exists.

The new mall will see changes to the back end parking as well as entrances to street but more landscaping as well.

There are a few other spaces for some larger retailers who now presently known yet. In terms of costs this expansions will be tens of millions and that is on top the millions spent to convert the old Target location. It is a complete affirmation of the owners in the space and the largest refresh done since the mall was built.

This is also a shot across the bow for Polo Park and St. Vital as Kildonan will be the first to fill its space where Sears left while the two larger cousins may enter yet another Christmas with empty retail.

The rumour is that both malls are ready to make announcements soon. In other words, it is game on but we'll see just how retailing is changing in what comes.

FreshCo Coming to Winnipeg

Sobeys announced this week that it will turn about 1/4 of their 255 Sobeys and Safeways in Canada into FreshCo stores. The announcement comes on the heels of continued loses financially and with cuts to employment. Stores have also been closed in several markets. The increases in minimum wages in Ontario and Alberta has the company spooked as well.

To counter the fact that Sobeys often has a competing store of Safeway almost directly across the street in some cases (Kenaston being a prime example), the company is looking to remedy that fact. Rather than close even more stores and inviting more competition from Save on Foods or Red River Co-op, the company is looking to brand some of the stores as FreshCo.

FreshCo is the offspring of Price Chopper and most of the Ontario stores once carried that banner. Winnipeg's Price Chopper was sold to satisfy federal government rules on competition. Northwest Company shut it down in favour of Giant Tiger. It was once thought though that the Winnipeg store might one day carry the FreshCo banner,

The sharing of one flyer between Sobeys and Safeway has become as untenable as when Best Buy and Future Shop did the same thing. Eventually, the consumer asks why go stores that list the same prices and are in proximity to one another.

The solution it would seem is to have FreshCo cater to local ethnic groups and tastes and offer different things than what Safeway and Sobeys does. Given the loss and incompetency of the merger, it would seem some haste is required in righting the ship. There is probably a market for low cost, targeted marketing in fresh food, frozen items and ethnic specialty items. The timeframe is closing as Amazon-owned Whole Foods is likely to expand again soon and more national ethnic food stores look at making a splash in Winnipeg.

Expect to see FreshCo some time in the new year.

Giant Tiger Now Open at Stafford

The closure of Price Chopper brought sadness to many when it happened earlier this year. It was a favourite for restaurateurs and those looking for fresh produce in their regular food purchases. It became an orphan in the Sobey's purchase of Safeway when the federal government ordered the divestiture of some stores for the sake of competition. In Winnipeg that meant four Safeways were sold as well Price Chopper. Red River Co-Op bought four stores getting back into the grocery business after decades on the sidelines and the North West Company bought Price Chopper.

For some time Price Chopper continued operations but it was the odd duck in the North West operation. In Canada the historic company dominates the north with Northern stores. In more recent years, it holds the master franchise agreement for Giant Tiger in Western Canada.

Co-Op stores found out just how aggressive North West Company is on expanding Giant Tiger when they went to re-sign the lease on the newly acquired Main Street store. The owner of the building said no thanks and sent them packing with little in the way of explanation. That was kind of bewildering as a grocer is a prime long term tenant to have. Moreover, Co-Op offered to buy the site which could have proved lucrative as well.

In the end it was Giant Tiger who kicked Co-Op to the curb. The new store there is open and while not completely a grocery, it offers a general merchandiser where there was none. It will be up to residents to decide whether they are better served than they were in the past.

It is difficult for some not to think the fix was in for Price Chopper. It is prime property on Pembina Highway at the entryway to suburban neighbourhoods. As the kind of store it was, it was always going to be kind of a niche. It wasn't surprising that an announcement came saying it was closing. But lo and behold, the owners North West Company has Giant Tiger to salve the wounds. This wasn't announced till later though.

This past Saturday Giant Tiger opened to fanfare at 677 Stafford. Expectations are that it should do great business where it is located. At just under 20,000 square feet, it joins 240 other Giant Tigers in Canada with a growing number in the west.

The neverending underpass construction along Pembina Highway still has a long way to go. However, Giant Tiger should be able to weather the long wait and be successful where it is. They occupy a part of the market that Zellers was just able to hold onto and where Walmart, Superstore or Target wanted to go. They have become a Canadian success story.

Giant Tiger to Open at 1441 Main Street, former Co-Op

The long awaited answer about what is going up in the former Co-Op store is known today. Giant Tiger will be the new store and it opens November 18 of this year.

Co-Op was dumped from the location even after trying to re-new the lease or even buy the property. It was a bit mystifying why a grocery store would be re-buffed in such a way.

1441 Main Street was a long time Safeway before being sold to Co-Op to satisfy federal competition rules. It appeared that the store was doing well but then the announced closure came. It was speculated that Giant Tiger might be the new store coming in but the building sat empty for some time before today's announcement.

It remains to be seen whether Giant Tiger is a better fit for the area but they are a strong company with food and merchandise so this can't be seen as anything but good for local people in the area.

Save on Foods Open Saturday November 19

The Vancouver-based grocer announced three locations on McPhllips, St. James and Bridgwater Forest.  Along the way, the old Zellers at McPhllips was re-purposed and the old Future Shop was done over. Bridgwater Forest was a new building. Around 1000 people have been hired from the nearly 15,000 who applied.

The popular grocer from the west is likely to trigger a price war in Winnipeg when they open. The biggest target will be Sobey's/Safeway who have struggled since Sobey's purchased the company. Sobey's would probably like to close a few more stores close to each other but they risk Co-Op or Save On Foods just grabbing the space up.

The McPhillips location of Save on Food is adding the work International after its name. It will be the largest location and carry the greatest diversity of products including many ethnic brands. There will also be many local brands at all three stores.

There has probably never been a more competitive time in Manitoba for large grocers going toe to toe than there is now.

Save on Foods also appears ready to announce as many as two downtown stores to capture the increasing population there. If I was to hazard a guess, I would say it the Skycity tower where one store will go.

It is possible the St. James store may sneak open on Friday.

All in all it is terrific news for Winnipeg and another great choice which should help keep prices very competitive.

Main Street Co-Op Closing

The Co-op 1441 Main Street didn't last long. Two years. It isn't closing as a result of poor business. No, Co-op was interested in upgrades, a new lease or outright ownership of the former Safeway on Main.

Instead what has happened is that the landlord has found a new tenant and needs Co-Op out by end of June. The company hasn't taken this lying down. The ran a full page ad in the Free Press expressing their view and indicated that they would be keeping their Co-Op pharmacy in the area in a closed Scotiabank across the street.

Co-Op remains with three grocery stores in Winnipeg. The Red River Co-Op itself has plans for a few more gas stations, convenience stores and car washes in the city.

The former Extra Foods nearby is now a No Frills store run under one of the Loblaw's banners so the new tenant seems to unlikely be from that company. This raises the question of just exactly ranks has a better long term occupant on this section of Main Street. If it is indeed another food store, this is a very bold move on their part.

There continues to be a lot of jockeying around in the Winnipeg grocery business. Sobey's takeover of Safeway continues to have its challenges not the least of which is what to do about redundant stores. Save On Foods or Co-Op seem ready to grab space and there is new news that Walmart may set up a strictly grocery business across Canada.

There likely will more afoot in the coming months and it will continue to alter what was once a fairly static business in the city.

Lucky Supermarket Coming to Maples

Former IGA across from Maples Collegiate

One of the causalities of the Safeway and Sobey's merge was the IGA on Jefferson Avenue across from Maples Collegiate. It was closed in 2014 and has remained shut since then. It will be now the location of the second Lucky Supermarket, an Asian food store.

Lucky Supermarket first opened a 32,000 square foot store in Winnipeg in 2010 and has done well in the market.

The closing of several stores by the big players in mergers has left the market open to others who might have a different approach. There were some justifiable fears that some the sore closures might leave retail holes not just for years but for several years. In locations outside of Winnipeg that might very well still be the case. However, inside the city, new players like Save-On Foods and Co-Op stores have grabbed old grocery locations and are running with them.

The 26,000 square foot Jefferson location of Lucky is in the middle of a residential neighbourhood with a good portion of Asian heritage residents living nearby. A typical store sells around 40% of what you would find in any grocery store in Canada. The rest is a combination of Chinese, Philippines, Vietnamese and other fare from the Pacific.

The new store will employ around 100 people which is welcome in this rather tumultuous time in the Canadian economy.

Sobey's Extra to Open January 29

It took an incredibly long time to replace the Safeway that closed in 2014 in Fort Richmond Plaza. Speculation was rampant and people looked on despair as the ramshackle and outdated shopping center rotted with no plans being put forward.

This comes to an end January 29 when Sobey's Extra opens up. At 58,000 square feet, it will be bigger than a lot of grocery stores out there. It will be much more than what was available previously on the site. That is to be expected with not only Fort Garry but St. Norbert and nearby Bridgwater seeing more people move in.

The Extra in the Sobey's is more staff dedicated to customer service such as in-store chef. There are also specialists called ambassadors who will on hand in various food sections. Cooking classes, sushi bar and noodle bar will mark the location as different from other stores.

The store opens 9 AM Friday and offers $10 gift cards to the first 500 people in the door. There will be also a selection of exotic foods to taste.

The store will employ 100 people which in today's market is welcome news. The refreshing of this particular shopping enclave is likely to attract other merchants after being empty or under-utilized so long. 2016 will be a fairly good year for new grocery stores to open after a number of years of closures.