GRETA Pub Coming to Former Garry Street Keg

If anyone had been interested, GRETA had announced they were coming to Winnipeg at the end of June. They didn't say where though. The retro arcade pub with locations in Calgary, Toronto and Vancouver is run by a former Manitoban who says he has had Winnipeg on his list for a while.

The Keg closed the Garry Street Keg in June to make way for their very large location at Donald and St. Mary. The old Keg built into a converted Hudson's Bay auto garage from 1911 was the first location of the national chain in Manitoba. Originally The Keg n' Cleaver, the restaurant kept the brick interior and in 1975 became famous for the lounge became an attraction for the young and poor crowd. This reputation continued for much of its early years.

As the menu changed and prices went up, The Keg attracted lawyers from up and down Broadway and Portage and Main. It was also a place where gay community people felt they could go for lunch and dinner near venues close by. Fort Garry Hotel patrons who skip across the street as well to enjoy steak dinners. For Jets fans though, the restaurant was just a bit too small and a just a bit too far from the arena. 

The new gigantic Keg will open close to Jets season start. At St. Mary and Donald, it is kitty corner to the arena and success. The permanent boarding up the old location that is iconic, attractive and has a patio seemed impossible. However, the terrible demise of the former Earl's, now former Boujee on Main, with three arsons and imminent demolition shows that problem with downtown properties. They need security and active use to keep them safe.

GRETA will have the patio active by Labour Day and the pub active by November of 2026. The vibe is retro but should appeal from Generation Z to Baby Boomers. However, it is the Gen Z crowd that is bringing back interactive retro. This could be their place. The street food menu of smash burgers and the like could attract a wider crowd. Young lawyers don't just love big steaks. Attracting a younger crowd than the partners of law firms might be the tonic the downtown needs.

With all the bad news we have seen downtown, items like this indicate that businesses are still seeing opportunity to invest and attract customers.

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.

Uniqlo Opens in Polo Park

When I lived in Japan, Uniqlo was just a few years open and only really known by Japanese or foreigners who lived in the country. While a lot of people were focused on international stores opening in the country such as Virgin Records, not as much attention was paid to a number stores opening in Japan that would take the world by storm. In 1984, the first store in Hiroshima was called Unique Clothing Warehouse. By 1988, because of an error in registration for brand name in Hong Kong, someone slipped a Q in and by 1989 Uniqlo was the official name. This is when I arrived in Japan.

People said the company was fast fashion but the reputation even then was for durable and enjoyable clothing. Affordable, which Japanese had not seen much of, during a steady luxury brands and stores entering the market. Living there as long as I did, I appreciated goods that fit and were not insanely priced. As Japan's economy went through a prolonged stagnation in the 1990s, Uniqlo grew in popularity as a staple of men and women's closets.

The first store in Canada was Eaton Centre in Toronto in 2016. Last years there was a flurry of stores in places in places like Vancouver and Calgary. Now Polo Park and later this year, St. Vital Centre get their Uniqlos.

How important is Uniqlo to the malls of Winnipeg? Very important. Generation Z is very much into a return to the mall. Unlike some Millennials who only order online, only text and don't like social settings, Generation Z is into experiences and socializing. It has been this generation that lined up for the store opening and showed a general enthusiasm for the event. Other generations also went but Uniqlo and Zara are among a few stores that have helped malls in Winnipeg find their mojo.

We are not nearly as over-malled as the U.S. nor have some of the long contracts that crippled some malls such as Mall of America. Sears, which has been closed for a very long time, has a 99 year lease at the mall so the space remains unoccupied. Columbia Mall is nearly abandoned in Grand Forks, North Dakota. At one time, the mall in Grand Forks led the way of what people in Winnipeg hoped to see in their malls. Overall, most cities seems to be absorbing the lost space left by retailers like Sears and The Bay.

Uniqlo had some of the best marketing we have seen in some time. They hired local as many times as they could in entertainment and food and product. The brought in influencers, They bought ads, And they invited media. It was a masterclass of how to make a grand entrance. And their target audience came even though it was a school day. I don't think this is the last retailer we see that draws a crowd but it might be harder to find leasable space since Polo Park and St. Vital seem to have a plan to attract stores people want.

St. Vital Centre Purchased for $160 Million

St. Vital Centre was built in 1979 for about $40 million just when a flurry of other malls were going up in including Kildonan Place, Winnipeg Square, Eaton Centre and Unicity. That was a lot of malls all at once and some of them did not survive or have been drastically changed over the years. Most of the malls were owned by real estate companies in the beginning but many including Primaris and Cadillac Fairview are now owned all or in part by the Maple 8, Canadians top government pension funds. For the last numbers of years St. Vital Centre has been owned by the Ontario Pension Board.

In recent years some private players have been making inroads as owners. It is unclear who their shareholders might be. In many cases their financing still comes from pension funds as in the case of Brookfield Asset Management. The fact that a pension fund sells a property doesn't mean they are not part of shareholding or or financing the deal to enhance their balance sheets. 

In the case of the sale of St. Vital Centre to Leyad, a Quebec-based real estate company, it appears the sale was financed by six credit unions in a syndicate. Since Leyad is a private company, it doesn't have to disclose its financial structure except to the banks and paying taxes. 

This is not the first foray into real estate in Winnipeg by Leyad. They have purchased Garden City Square, Johnston Terminal, CDI College and the Canada Goose Distribution Centre over the years for a pretty significant footprint in the city. Next to Montreal, it might be the biggest holdings right in the company. 

For many years St. Vital Centre has been firmly entrenched as the second largest mall in the city. Due to the location, it is hard for it to expand much beyond what it is now unless they build up. However, they still have to fill the empty Bay store location. This is an issue for Polo Park as well. Since the other large story closures led to knew tenants, it is expect that by year end announcements will be made on new uses for the space. And Leyad seems well suited to investing in their properties but that remains to be seen. The Johnston Terminal took a while to get going again after Covid but seems better now.

There is no record of what the purchase price of the mall when it was taken over by the Ontario Pension Board. However, with the original price being $40 million and the sale price being $160.5 million that is a very healthy price for a mall still producing income. The powerful Canadian pensions probably can't quit malls completely. They are too big and growing to not buy real estate. The U.S. could be less attractive if their economy tanks but who knows? That could be the perfect time to invest. Just ask the people who bought dirt cheap after the last crash in Florida and Arizona.

As mentioned, there have been some malls across Canada that have closed. In Winnipeg, that would be Portage Place, Unicity and a few strip malls. However, Canada never really overbuilt the way the U.S. has and done. In Grand Forks, North Dakota, you could call Columbia Mall a failed mall. It is embarrassing to see.

The purchase by Leyad is probably an attempt by St. Vital Centre to remain the second largest mall in the province ahead of Outlet Collection Mall and the rest of the Seasons development. This may be a losing battle because the Seasons development had been going strong for 13 years. There has never been a stop in building on the site although it is possible this year might see the last few spots filled up in the surrounding mall spaces.

St. Vital's hosting of the Children's Hospital Book Sale at least two to three time a year also fills the place with people from all over the city and beyond. For those who don't remember, it used to be Polo Park that hosted this. The destination malls usually have things over seasonal times to attract shoppers. The more unique, the better. For many decades it was mini-concerts and fashion shows.

It seems Leyad's purchase of St. Vital Centre will be followed up with a multimillion investment in the former Bay location soonest. There are few if any big retailers out there that could take the full space over. Some are still hankering for a Simons department store but it might be wishful thinking as the company takes a long time to expand their private company. Others believe there might be a new grocery coming courtesy of rule changes that block competitor from opening in the same mall. Many places have agreements that are paid for to keep other grocery and pharmacy out. This has been ruled as anti-competitive. Those that continue to practice may face penalties and fines.

It used to be that malls had long lists of retailers wanting to move in but the need to expand the hours and reasons to go to the mall have had to increase. It can't be all fashion stores that don't last a season. Expect to see more moved development in the near future.

 

Abercrombie and Fitch, Uniqlo Coming to Polo Park, Eddie Bauer Closing

Polo Park remains the top mall because it continues to adapt and attract tenants. Having said that, it must be exhausting some of the big retailers like Eaton's, Sears, Zellers, The Bay and others who have collapsed over the years. Even now, the mall and St. Vital are trying to figure out what to do about the empty Bay stores. It is likely we hear more in 2026 but it is unlikely that there is any big retailer is about to grab the whole space. Even Simons would not occupy that much space as seen from their recent expansion from Quebec into Ontario.

This story is not about the anchor stores though. This is about the smaller retailers that make up the corridors between the anchors. After Christmas every year changes are made and there will be periods where some retailers are looking to to downsize or close and others are looking to the opposite. There will be attempts in the mall to move retailers around so they can occupy bigger spaces or to be in an area where each retailer attracts a certain type of customer. For example, jewelry stores like to locate in the middle of the mall where two or more corridors intersect.

Polo Park has kept up as the top mall because it constantly invests in the building and seeks out unique stores no one else has. The Apple store does huge business. However, even having one exclusive store can have it's time and close. Eddie Bauer has been around for years and was part of a huge upgrade in 2014. There is only one in the city and on January 7, it closed. It is unknown whether this is a lease that was not renewed or whether Eddie Bauer itself made the decision. 

In the end, it doesn't matter because the mall has been moving tenants around to accommodate incoming retailers. While it is suggested Gen Zs are not going to the mall, Canada cannot merely assume what is true in the States is true here. There is some evidence to suggest that certain stores can indeed attract young people. And malls have been trying to add attractions and activities that attract families. Ask West Edmonton Mall and Mall of America about those.

Malls are like hotels in that renovations and changes within an existing framework need to be done each decade to keep things fresh. It is worth noting that Polo Park was late to the food court crowd in the 1980s. They had mall restaurants as tenants and in department stores but nothing like the other malls until their late 1980s reno. That was the way to attract young people back in the day and still is.

The constant change in recent years hastened by Covid means just as a mall settles one issue or need, they get bulldozed by new announcements of store closures they perhaps didn't not anticipate. As mentioned, Eddie Bauer is closed. The company has been closing closing locations over the last few years. However, the location closure has given Hollister a chance to re-locate and do a re-fresh. The California-look store has been at Polo Park since 2010. It is unknown if they will restore the video walls of Huntington Beach webcam that the company has broadcast since the early 2000s. Most of the stores have dropped the beach hut like entrance for a brighter, open window look. Apparently, Gen Z likes brighter lights. Also gone in the new design is the heavy scent and loud music.

In Hollister's old location near Zara, sister company Abercrombie and Fitch is set to come to Manitoba for the first time. They have had their ups and downs, CEO problems and the like. The store first started in 1892 so they know something about adapting. As a new store to the province, it will attract a lot of interest from young to mid-range age shoppers. Abercrombie has gone through several iterations as most successful brands have done. The opening of the store in 2026 should cement CF Polo Park's hold as the top mall in Manitoba.

To cap it off, the mall is adding Uniqlo, the Asian-inspire store that has fans across the world. This will be the third in a series of Asian stores to open at Polo Park. It likely won't arrive before St. Vital Center's own Uniqlo arrives. The southeast mall continues to be the main rival to Polo Park. The large Asian population of Winnipeg and those that love Asian fashion and beauty is changing the retail industry.

The goal of any mall is to transform and not leave big empty gaps in the building. To that end, what Polo Park does with the old Bay will be one to watch after these latest stores open.

The Return of Zellers to Winnipeg

Zellers keeps trying to make a comeback. After the closure of The Bay where Zellers pop-ups were thought to make the department store relevant again, it seemed we'd seen the last the last of attempts to revive the brand. In the 1990s, Zellers numbered 350 stores across Canada. By the time Target came in and bought 220 Zellers, it left and orphaned and unwanted 70 locations that began slowly closing until there was none. As for Target, it was only a few shorts years in Canada and they retreated back across the border. All the old locations now have different stores in them.

As The Bay struggled in post-Covid times, Zellers was brought in to help the store sales with a wave of nostalgia and product lines. However, the American owner of HBC had pretty much sold most things of value and so the oldest company in Canada was liquidated including the Zellers popups in Bay stores across Canada.

In receivership, leases and namesakes and anything of value are being sold off with oversight by the court. Canadian Tire bought The Bay name and key intellectual property for around $30 million. It is believed that they open parts of the business under The Bay name and sell things like Hudson Bay blankets.

But no one knew what was to come of Zellers. No mention was made whether it's name or intellectual property was sold. Now we know the answer. It was. A group associated with retailer Fairweather. The details on the new Zellers are few. It is in Edmonton's Londonderry Mall and around 60,000 square feet. But whether it has a grill, carries certain products and the like is a mystery.

The word is though that the new Zellers is looking at Winnipeg but it unknown whether it will go to St. Vital or Polo Park or neither. A credible owner now has control over Zellers. A lot of eyes will be on the new Edmonton location to see if it will be turning up in Winnipeg in 2026.

Polo Park Billion Dollar Development Stalled

It should come as no surprise that Polo Park developer Cadillac Fairview along with Shindico went to great trouble to change the zoning around Polo Park to allow high rises. The airport opposed and was overruled so the go ahead to proceed to the planning phase began. And then nothing.

I suppose they might be forgiven in that other major priorities have them occupied which they are reluctant to say. For Cadillac Fairview, it has been to fill the second floor with the new London Drugs. The former Zellers site as been a frequent site for changes and London Drugs is an anchor worthy of the mall. The next task is to fill the huge empty space left by the closure of the Hudson Bay Company.

For more than a year, Polo Park and St. Vital Centre has girded themselves for what was to come if and when The Bay closed. They both have filled spots in the former Sears locations but it can't be easy to backfill constantly major retailers that have collapsed. Sears Polo Park was a major anchor and it required some innovative thinking to fill the spot. Likewise, St. Vital Centre also needed so do some thinking to fill the spot left by Sears closing. 

Cadillac Fairview would probably like to develop the properties they own where the old arena and stadium stood but is constantly having to work on the mall itself. While it remains the largest mall in the city, it is has lost some luster to Seasons of Tuxedo which continues to see more stores, restaurants, hotel rooms and and housing built. Presumably, all the things Polo Park wants. St. Vital Centre is pressed to expand anywhere. It is as hemmed in as you can get. Once they find something to fill the HBC spot, it will be interesting to see if they look to something different such as build up.

Polo Park's location along Portage Avenue and next to Route 90 could not be more well positioned for growth. Cadillac Fairview probably has another year or so till get their mall in shape. Once London Drugs is in place and The Bay filled in, I expect they will look at building the multi-unit housing that is in the plans. It is all so painfully slow.

As for Shindico, the actual construction of Costco after years waiting for the announcement is sure to trigger more of the development surrounding the big store through 2026. There are already large blocks of apartments and other residential units going up either side of Winnipeg and Headingley. Nearly all land preparation and traffic lights have been put in to support this development. One can imagine though that it is likely not enough. Already, Coscto has triggered Walmart Unicity to conduct a massive hundreds of thousands of dollars upgrade to their store. It is a huge improvement there.

All this development emphasizes the point that hundreds of millions are being spent on areas that have been waiting for years for work. The Costco in Headingley has been in the planning stages since before the pandemic. Now, it appears they are moving with haste on it as well and at the North Main Street location. The Polo Park location will become a Costco Business Centre.

The developer indicated that the new lower immigration rate, tariffs and other factors were contributing to the stall. There may be some clarity on the tariffs soon but it may be difficult to get to where we were in the last years with tens of thousands arriving each year. The truth is that immigration has been lowered because there was no capacity to house new arrivals. And capacity was a problem long before immigration was increased.

The federal accelerator program is now building affordable homes across the country that are shovel ready. This should be helpful as many projects, such as Polo Park, are more market driven and will not be viable for real affordability unless they receive some part of accelerator program money. The list of applicants is long. It is shocking how long projects take to get done. World War II was won in six years but building an apartment in Winnipeg can take a decade.

So much is happening in 2026. Portage Place becoming Pan Am Clinic, the Downtown Bay conversion, the old BMO Portage and Main becoming a museum, two Costco's being built and apartments all over the city. And Kapyong likely to take the next step on development. If Polo Park waits to long, they are likely to be passed by.

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/

Will The Bay Close in Winnipeg and Elsewhere?

 

It is hard to believe there are only two Bay stores left in Manitoba, both in Winnipeg's largest malls St. Vital Centre and Polo Park but it is a reflection of how far department stores have sunk. This isn't just true of Canada but all around the world. There are a few strong luxury brands out there but a generalist middle income store has struggled.

The Bay has a line of credit from Cadillac Fairview, owner of Polo Park and other top malls in the country. They have not been receiving rent despite the cutbacks from the store to save money. This week BBC went into creditor protection to stop from being seized by landlords. The rumour is that 40 of 80 stores might be closed and that the licensed Sak's and Off Fifth Sak's may end up shuttered as well.

For some who have not shopped at The Bay in years, it is probably no surprise. In recent years, the Bay was trying to cater to the luxury market. Then they went for some Zellers nostalgia. Will it be enough to save HBC? We have seen store after store collapse recently. The Bay is one of the largest department stores out there still.

Some stores that have gone bankrupt and lived to see another another day with new Canadian ownership. HMV, Toys R Us, Northern Reflections and a few others are seeing new life. American ownership is not always going to be the right ownership for Canadian business now more than ever.

If the Bay ends up closing their locations at Polo Park and St. Vital Centre, expect something more dramatic as a replacement. It could be sub-divided into stores but it could also be turned into hotels, food halls and apartments. Even the big malls like Mall of America have been hurt by closures. Sears closing has left a huge hole in their mall and a long time lease has them trying to sort it all out.

Manitoba has been fortunate to turn around most malls that have had a major anchors leave have coped by filling it with other users. Some malls have converted to box stores instead. The ones that didn't like the Portage la Prairie Mall eventually lose one too many anchors and close.

As the details emerge about the precarious financial situation of the The Bay, it seems impossible that any of the company can survive. It owes $1 billion and credit protection will look to see what, if anything, can be done to emerge from that state. Anything of real value, like the real estate, has been sold off over many years.

It shouldn't be too long to see what the outcome will be. There is no doubt that if the company does come out of this, it will be much smaller. And sadly, that might mean that Winnipeg has no Bay stores.

Winnipeg in 2025

Many large projects are slated to begin in 2025 across Winnipeg head to next phase in the new year. This comes at the same time as city council has indicated they have drained the rainy day fund and are in the hole for next year. The threat of tariffs by Donald Trump will certainly spook many export related businesses in the city and beyond. Is it a negotiation tactic or will there may be some painful times coming?

The election of Donald Trump who takes office in 2025 could have huge influence on how well Canada does and by extension Winnipeg. A tariff war could hurt Winnipeg which is geared for exports. There is a promise by the Conservative to cut the $122 million accelerator housing program funded by the federal government and awarded by the city if they get in office. It has attracted huge interest across the country and housing projects are starting in the new year or are under way. But does it stop after next year?

Portage Place is now fully in True North's hands and signals the largest investment in downtown in a generation. The new Pan Am Clinic will be the best health clinic of its kind in Canada when completed. And just like Grant Park will be busy seven days a week.  And it is this type of activity which is needed centrally in Winnipeg. Grant Park is along a bus route that is not nearly as well used as Portage Avenue.

Portage and Main, for better or worse, is under construction as it ends the days of the Concourse. The first section is around the former Bank of Montreal where the Metis are building offices and a museum. This section along East Portage could look quite different in 2025. If the museum attracts the tourism that is expected, this could result in a lot of surface foot traffic.

The Manitoba Metis Federation is not the only indigenous group with big downtown plans. The MMF will be working on the Bank of Montreal museum but also absorbing their office building purchases along Main Street. Meanwhile, the Southern Chiefs Organization will continue their work on converting the down Bay into offices and housing with the $200 million budget they have. The only problem is that their chief has been replaced and it is still unknown how it might affect the schedule or direction of the work. The SCO really needs to make clear what is happening.

In the southern party of the city, the long awaited University of Manitoba acquired lands of the Southwood Golf Club. It has been a painfully slow period of development. The housing needs of students on campus remain a concern and yet nothing announced these last years. Construction was to start this year but so far no announcements have been made. The expected 10,000 units of residential units over the next decades is estimated to cost around $6 billion. It will transform the area with 12 million square feet of development. 

We should see some announcements in 2025 as it is likely the demand in this area will be immense. It is odd that the smaller University of Winnipeg that doesn't have the large land gift U of M has next to it has not seen as much housing as the University of Winnipeg. 

The University of Winnipeg has been the most consistent builder of apartments in the downtown in recent years. The above picture shows another apartment town amidst a bunch that the University has built in earlier years. They don't seem to be slowing down which is good as they are building today's and tomorrow's neighbourhoods.

There are several other areas of the city that should show physical growth in terms of retail and residential. Very few offices are being built. The post pandemic world means more people work from home. It might be a while before we see another office tower go up. As far as business investments go, we are seeing many manufacturers gear up although many in Manitoba will be wary on Trump tariffs. It seems the sustainability of growth in Winnipeg and Manitoba will depend on that. 

The Portage Place Proposal

The ideas presented by True North and Architecture49 for Portage Place in this series of pictures is a far better proposal than we have seen from developers thus far. The cost is estimated to be about $500 million and there will be a taxpayer component for some aspects of it. A 15 storey health tower will be built on the western pad. The foodcourt will give way to a first floor of elevator banks and possibly a walk-in clinic and primary care clinics with extended hours. The second floor will remain a main corridor in the skywalk system to connect the arena, the former Bay Building as well as Investors Group.

It is noteworthy that the Pan Am Clinic is involved. Prior to the pandemic they had made arrangements to build a facility on the old mini-golf course adjacent to to the Reh Fit Centre. A bit of a coming home for them as they started way back decades ago in the building. Alas, as soon as it was announced, a panic ensued as the underpass at Waverley which had been cancelled since 1984 Mulroney was finally approved. The Pan Am was cancelled. And thereafter, their onsite physio had to move for lack of space at the clinic. They have been over capacity ever since.

To say the Pan Am Clinic has been waiting patiently ever since is an understatement. The parking lot behind the Pan Am Pool is filled daily with those attending appointments or being told walk-ins are filled by the first hour. A 15 storey Pan Am tower for an Advanced Musculoskeletal Medicine sounds like the they type of  innovative centre that downtown used to be known for. The Boyd Building, Medical Arts Building and the Winnipeg Clinic were where people went for the specialist appointments. Most are closed or downsized from their one prominent position in the city.

Some new suburban offices have opened for doctors but the Pan Am Clinic is in need of space for diagnostic equipment, surgical suites and space for a growing demand in treatment of pain and therapeutic and surgical treatment. It is a long time coming. There appears to be a pick up and loading area for the clinic but better pictures are needed to see if it is adequate. Edmonton itself appears to be a through street although it isn't entirely clear if it is only for pedestrians or one where vehicles can use even in a limited way.

The first floor that has today's present food court appears to be all clinic space. The above floors will have 50,000 square feet of ambulatory and orthopedic surgery space. A concussion clinic is set to operate on on site and a 26,000 square foot dialysis space will be set up. The latter has been desperately needed. Altogether, this is 220,000 square feet of health space and a $300 million investment. 

The above alone would be a huge deal. It is worth pointing out that many cities across North America have hospitals in their downtown areas. Health Sciences Centre is not downtown. Nor is St. Boniface Hospital. Look at Toronto or Saskatoon to see hospital districts. They are 24 hour drivers of social, health and economic opportunity. I sometimes wonder if Health Sciences Centre blocks away from downtown would have been better closer in. As it stands now, we'll never know. For St. Boniface, it is close by but better for the core district surrounding the commercial neighbourhood of the French Quarter rather than downtown.

The Access Clinic on Main Street with its parkade was a multi-million investment in health north of City Hall. However, street friendly, it isn't. It is closed at 4:30 PM every day and closed weekends. Heroic work might be done inside but it is unlikely a single business, restaurant or residential building benefits in ways that St. Boniface Hospital benefits its district or Health Sciences does for its area (although in recent years that part of the city has gone through difficulties).

It is without doubt that a downtown Pan Am Clinic along with primary care and dialysis treatment will be utilized and see many people use the facility. And with 1000 car parking space below, parking should not be considered an issue. However, the foodcourt and some retail, services and the old theatres will make way for this development. Public input is ongoing. It is uncertain what the reaction will be to the loss of the foodcourt as it presently stands will be. Many in the community are attached to it as a place to sit and gather. Some indigenous groups had wanted the mall turned over to them as a community spot. Still, this has to be weighed against the advantage of primary care, addictions care and dialysis in one spot. All of these things are also needed by the downtown community and by indigenous people.

A pocket park along the Edmonton throughway should open up north and south access which could see and increase of people being present. While people could enter and exit via the mall, the north entrance had been the source of security concerns in recent years. With a large health facility present, thousands of people per day from all over the city will be going back and forth. Such is the reputation of the Pan Am Clinic that you if you are in pain, suffering a concussion, you don't care where it is, you care that it is.

As stated, if the only news on Portage Place was this, it would be astounding good news. However, there's more. The western portion of the mall looks to continue hosting long time resident Prairie Theatre Exchange. Manitoba Chamber Orchestra also calls the third floor home. The Expo Live! part which is owned by by True North looks to be making way for a 14,000 square foot grocery to yet be named.

There is no doubt this is good news. Despite what anyone thinks, there are quite a few residential units that have gone up in recent years on north Portage via the University of Winnipeg. There is a lot of housing behind Portage Place and Central Park. And more housing coming atop Portage Place itself and in the Southern Chiefs owned Bay building. 

Some naysayers will talk about grocery stores attracting theft. That happens whether it is in St. Vital, St. James or parts in between. Much like how the liquor stores had to add a layer of security. it could come to that for grocery, pharmacies and the like. I have seen more security guards posted at banks recently all the way out in St. James. Many grocers are going to a single entrance and some sort of gate to cross through. Many have security and police posted. This may be the new normal till we deal with drugs, cost of housing and homelessness.

Regardless, a grocery store is excellent news and the customer base is already in place with so many apartments either connected to the skywalk or walking distance. A 16 storey apartment above the grocery is exactly the type of synergy you need in a mixed development. The other parts of the west side of Portage Place is probably where we will have some discussions. A Service Canada office is in place and should remain a part of the building. What else goes inside should probably be determined by the needs of the people living and working in the area. A Shopper's Drug Mart is there now and still seems a good match. As are many of the cellphone companies operating inside. A new food court seems unlikely a few coffee shops and quick service restaurants seem very likely.

It is unclear what sort of residential units will be going up on the west pad. There was mention of student housing and there is no doubt that downtown has multiple schools that can use it including the University of Winnipeg, Red River Polytech and a host of private colleges. One thing that can be said about schools is that they are great drivers of economic activity. And many choose to be downtown because it makes sense logistically for them to do so.

The University of Winnipeg by the very early 1980s had taken over both it men and women's residences for offices. There was no capital budget, student populations were going up and the feeling was that there was enough apartments and rooms for let near the university. Or that many students lived at home and commuted.  Some of that is true. But a lot of it wasn't. There was inadequate housing for decades and the U of W was suffering for it.

It bears repeating that in 2019, Winnipeg and by extension Manitoba, was doing pretty well. The previous year play-off run by the Winnipeg Jets had brought tens of thousands downtown. Many businesses were in expansion mode, festivals downtown and theatres were running at capacity. By 2020 that all changed with the pandemic. Many small businesses were lost and closed down and others have not recovered due to the continued change in work patterns.

The addition of a medical component and a residential component to Portage Place will make the building busier, less a magnet for trouble, more open with public space and not a three block wall on one of the busiest streets in Winnipeg. The proposal thus far along with upcoming public consultations is the best we have seen. It gives a strong reason to go downtown. If someone needs medical treatment, it is better if it is an all and one place with diagnosis, treatment and doctor and specialist visits. With any luck, we will see a deal complete and work beginning soon.

Portage Place Makeover 2021

Well, Starlight Investments out of Toronto has indicated what they will be doing with their purchase of Portage Place in 2019. They will indeed be putting up two apartment building on the east and west pads of the three block mall.

Or perhaps we shouldn't be calling this a mall anymore. There will be no internal corridor anymore. It will be replaced with a Skywalk that runs along the entire south streetside. Presumably, there will be corridors at various intervals to offices, retail and apartment within Portage Place. Also likely will be security doors closed after hours and only open to those with business inside. And the Skywalk itself might actually be paid for and run by the city with some financial support from the developer.

Essentially, we are seeing a plan for a three block long skywalk with nothing inside as being a priority change. Only paying customers inside, please.

None of this is to begin till 2021 and will be in progress till 2027.

All through this, of course, the developer is assured that millions will come in from the parkade, Perhaps $25 million or more by that time from parking alone.

There has been a promise of some sort of outdoor public access but we have heard that story before in the form of The Promenade which runs behind Portage Place on the northside. It has never lived up to the hype.  In fact, the rear entrance has been the source of many a problem for the mall. Truth be told all of the entrances and bus shelter have had problems. The above picture shows a pedestrian plaza but when push comes to shove, I don't see it happening.

A plaza has places for sitting down. It doesn't have cars zooming past. It is safe and secure. It isn't dominated by national chains. It is very local and organic. There might be a thousand people that live behind Portage Place but there was never any street life. The mall and the residences turned inwards.

As for mall, by 1988 many stores facing out to Portage Avenue shut their doors to the outside. There were two reasons for that. The mall took sidewalk traffic and moved it inside the mall. The second reason was two entrances meant two staffed cash areas for stores that likely only needed one cash desk.

A good outline of the Portage Place can be read here in legislative report from 1994:

https://www.gov.mb.ca/legislature/hansard/35th_5th/hansardpdf/ma2.pdf

The two pads built on east and west side of the mall and development were being considered. Portage Place and the surrounding area were not considered "complete." The next phase addressing building atop the mall and creating more street presence was looked into.

This is the concept plan above for the west side. It included an office tower of about 10 floors. It never happened. It is why I'm not exactly blown away by the concept art from Starlight. We have seen this before. We have been promised things before. But then priorities changed.

The east side pad was to have been a Lakeview hotel. Building materials and scaffolding had actually gone up. They quietly came back down as Winnipeg slid into a recession that saw property values stagnate and collapse all over the city. We saw federal, provincial and civic cutbacks while arson and murder climbed and addictions rose. Some neighbourhoods were near collapse and insurance companies threatening to pull coverage. It was bad. It seemed the city was burning down.

Meanwhile:

• Polo Park 1959, enclosed 1963, second floor added in 1986
• Grant Park Shopping Centre 1962
• Garden City Shopping Centre 1970
• Unicity 1975
• Winnipeg Square 1979
• Eaton Place (Cityplace) 1979
• St. Vital Shopping Centre 1979
• Kildonan Place 1980
• Portage Place 1987
• Forks Market, Johnston Terminal 1989-1993

https://winnipegsun.com/2012/09/19/portage-place-time-to-tear-it-down-and-start-anew/wcm/b49f9e3f-faeb-4552-a41c-83b608ce1734

That is a lot of malls. Polo Park added the second floor in 1986 and then Portage Place in 1987. They were both owned by Cadillac Fairview. However, the Bronfmans sold CF to Ontario Teacher's the year before Portage Place opened up. This is significant as the mall developer lost the entrepreneurial side of the business and instead got owners interested on sitting on assets and pulling in returns.

By 1995, Unicity Fashion Square mall collapsed into bankruptcy and closure. The Forks was struggling to stay alive. The earnings from the government owners parkade at Portage Place were being transferred in the millions to Forks development. Very long and cheap leases were signed and and parking was free. No money was left for North Portage.

By 1997 Cadillac Fairview sold Portage Place. Remarkable after only 10 years. It would go on to be sold twice more with values collapsing. Eventually, the landlord converted some of the retail into offices with some success. But the mall was never to know it's true value till the public ownership of the parkade was resolved.

This year we saw what the value of the mall in terms of the sale to Starlight was at around $22 million and the value of the parkade was around $47 million. The return on the parkade each year? About $3 million. That is something a developer can bank on.

How do we know that ownership of the parking can trigger development? We need look no further than Portage and Main where Artis owning the parking has triggered upgrades to the tower, mall and now the construction of the tallest apartment in Winnipeg at 44 storeys.

Still, we should be wary about what is promised versus what is actually delivered. Look at Skycity. The condo has never gotten off the ground amidst police raids and investigations. Some Winnipeggers have lost a lot of money and time on that one. And the land set aside for it will probably be legally entangled for years.

The one good thing about Portage Place is that it is a built asset and together with the parkade is an income generator. I think the mistake that some people make is that there aren't any blue chip tenants in Portage Place. They have a variety that other malls are now realizing can be more stable than just retail. For example, Prairie Theatre Exchange has been there from the beginning and is now joined by the Manitoba Chamber Orchestra. That brings in a lot of people in.

Starlight will need to satisfy office tenants such as Investors Group, PTE and Manitoba Chamber Orchestra with some form of public access. None of them would want locked doors making it difficult for clients and customers to access their services. There are also a number of non-government agencies, dentist and other clinics that need access to either a public court or outside building entrance.

It is no wonder Starlight is talking about a "public plaza." But Edmonton Court will be neither be a replacement for the mall or a plaza. It would be the bare minimum to keep the tenants it does have there happy. To service the Skywalk facing out to Portage Avenue and to make sure people have access to their parkade from the street, there needs to be ways to pass freely through the building north and south and up to the east and west Skywalk corridor. That requires stairs, elevators and escalators. That end Edmonton Court will remain public.

There is no doubt Starlight does not want to lose Staples and Shopper's Drug Mart. Expect to see those store have exterior access to Portage Avenue. A grocery has been talked about as well and it will likely have access to Edmonton Court or to Portage Avenue. The federal offices of Services Canada will need some sort of public access as well since the mall corridor will disappear.

The type of disruption being considered for Portage Place can only be done a section at a time. And probably a floor at a time. In all likelihood, the second floor will be first and the northside retail tenants will be affected. The section to see change first has to be, without doubt, the east side of the present mall. Why? Because the Skywalk to the BellMTS helps puts premium parking in the parkade for over 100 events a year. Any interruption in that affects the bottom line for Starlight.

The apartment towers in terms of construction will probably be less disruptive than closing the mall and building the Skywalk out front. But the Skywalk really can't be done without some sort of impact on the second floor retailers. The ones facing north will face evictions first but as soon as the entire Skywalk is done, the second floor ceases to be a mall as we know it. As for the third floor, the east side where the IMAX and Globe Theatres once stood represent an attractive space to make third floor apartments more appealing.

I suspect as amenities go, the theatres could be used for an apartment gym, a common room, meetings rooms. The same could apply to the IMAX space. The high ceilings could make for a climbing wall alone. Some sort of lobby, dedicated elevators right down to a service dock for people moving in and out and receiving deliveries will be needed. Engineers, architects and trades people will be needed to figure it out. Likewise, when apartments are set up on the west pad, they will have to figure out elevator and stairwells and loading dock too.

Slow work to upgrade older buildings such as malls can take years. Polo Park in fifty plus years has doubled and now contracted and looking to build up again. A better comparison might be Grant Park Mall that look several years, a few setbacks and continued change to get to where it is now. A few times Grant Park looked like it would be passed by in favour of flashier retailers and yet it has flourished despite major changes.

The conversion of Portage Place to what it is going to become is probably not going to be what the concept pictures show. Unlike, True North Square that started on a parking lot or land where structures were knocked down to make way from construction, Starlight is working with existing structure as well as tenants.

If we skip ahead to the future of Portage Place, there is a good bet that in this decade it won't look like it does now...probably won't be owned by Starlight either. By way of comparing, there is not a single tower at Portage and Main that hasn't changed hands except for the Richardson building. The goal of Starlight will be to monetize their asset with the transformation and only hold onto it if it looks to build their stock value. While dividends are very welcome, Starlights makes money buying and selling assets. Buy low and sell high.

What we will see with Portage Place is the two 20 storey towers over the next 10 years, a connection to Skywalk and as many long term blue chip tenants in retail and office as they can find. After that, don't be surprised if they sell to a nice fat pension group looking for consistent dividends for their retirees. How much will they sell for? If they are lucky, they sell three blocks of prime real estate in Winnipeg for between $800 million to a shade under a billion. All that for an initial $80 million investment and probably $300 million or so development.

The city won't have much leverage except in the Skywalk discussion. At that time, they could encourage more street entrances to the retail off Portage and may hear a receptive ear. A real upgrade of Portage Avenue in that area could work. Keep in mind though that the city keeps saying it is in the poor house so there is that.

In 2030 the whole of Portage Place might be complete. That would just in time for the discussion for the replacement of BellMTS with a larger facility. In case you are wondering where that will be, look no further than where the Goldeyes play right now. The city has already indicated that they see how valuable this land is and at some point, they will hand it to the True North or whoever owns the Jets for a new arena around ten years from now. As for the Goldeyes, who can can say if the team will be around but if I was to guess, it will moving to Point Douglas when we make make another pitch for an international games and looking to build a legacy building.

And the old BellMTS arena? Another add on to True North towers. Even then Portage Place parkade will still be needed for a higher density office and residential community in the area.

Look for new plans on Portage Place and the Skywalk soon and a start date announced for construction by fall of 2020.

Portage Avenue 1970

In 1970 Portage Avenue was still a going concern commercially. The Bay and Eaton's were still packing them in. There were several 20 storey towers that went up all over downtown bit the most iconic was the over 30 story Richardson Building seen here all lit up in more or less its first year. The Northstar Inn (Radisson) on the right was up at near the same time built by the owner of Famous Players. It contained the city's newest and swanky movie theatres as well as highest parking lot in Winnipeg.

It was still possible to find a gas station downtown. A Gulf station is seem on the south side of Portage Avenue.

The north side of Portage was always a little less glamourous. By 1980 it was in full decline as the city plunged to the hardest economic times since the Depression.

Old Pictures of The Bay Downtown

Taken in 1930 from the air, The Bay was very prominent in the city. A surface parking can be seen at the rear. Eventually an Imperial gas station would be on the near corner.

Also pictures from 1930, angled parking right outside the doors of HBC. Awnings because no air conditioning. It got hot inside.

The picture is after 1932 because that was the year the Winnipeg Auditorium was built. Hard to tell what year but angled parking remains on Portage Avenue at this time. The Winnipeg Art Gallery is decades away and even the Mall Medical building has not been built. That would come in 1947. A gas station can be seen in the narrow corner future art gallery. Believe it was a British American gas station.

This was the Bay parking lot in the 1940s.

By 1947, the Mall Medical was built across the street and the parking lot had an Imperial Gas station. In Memorial Park of the future, the University of Manitoba science faculty is seen.

A Desperate Plea for Grocery Stores

Urban Fare Yaletown, Vancouver

Sobey's Urban Fresh, Jasper Avenue, Edmonton

Sobey's Express  Roncesvalles, Toronto

A desperate plea is rising from people downtown and immediate surroundings. The closing of three grocery stores even in neighbourhoods that seems to have housing such as Notre Dame and on Main Street is accelerating.

Today's Free Press had a contribution from a resident of a senior's apartment behind Portage Place who sounded the alarm.

Over the last several months, we have lost the Wagon Wheel, the Paddle Wheel, Zellers, including its grocery store, the youth hostel, the NRC Centre, and several and sundry smaller venues within the Portage Place complex.

We are fast becoming inundated with the losses.

Add to that the Winnipeg Film Group and Gio's niteclub in the last day.

Now, some of this is not all negative. The Wagon Wheel makes way for a fairly expansive and innovative mixed use of offices, hotel, parking, restaurants and condos. We can be sad for the end of an era but happy about the possibilities on a boutique hotel and condos might bring.

Gio's appears to be making way for some development...possibly apartments. This is a good thing. Gio's has had a few locations over the years. The takeover of their present location was made possible by the closure of a pizza joint and the fact of so much empty land. Hard times made for a good spot to operate and the gay and lesbian community now find that their efforts to bring people downtown have made their property valuable for other urban reclamation projects.

I suspect that Gio's will find a way to come back, perhaps to some place along Portage Avenue although one blogger suggested the Free Press Cafe.

The Winnipeg Film Group is also looking to move. Part of it is expansion mode but some is not. This is what appeared in The Uniter.

...surveys have shown concerns about parking and night-time safety are preventing Winnipeggers from attending screenings.

Night-time safety. Not good. I don't think theaters goers for screenings downtown are overly sensitive either.

Just one more indication that increasing the feeling of safety and security must continue.

It isn't an impossible task. The Forks is generally considered safe and not part of downtown. We need to increase that envelope of security through better lighting, more patrols and better planning.

It is easy to feel insecure and vulnerable if the lighting is poor, sight-lines are awful and where there is little pedestrian traffic.

But back to grocery stores...

We are seeing more people move downtown. Waterfront Drive now boasts a population where none existed five years ago. Hotels are being converted back to apartments and condo conversions are taking places in warehouse space and offices. New apartments are coming as well.

And yet fewer choices or no choices for grocery stores.

It seems to me that if the government ends up having to take over The Bay downtown, it would do well to go out of their freaking way to make sure that a Sobey's Express, a Safeway or any other grocer out there be located in the basement. They would probably love to be a in large government building.

Moreover, perhaps a few restaurants wouldn't mind being in the building at ground floor as well. If and when The Bay takes flight, the worst thing would be if the whole 600,000 feet becomes government offices and you need to go through security checks just to enter the parkade.

We NEED grocery stores if urban living is to succeed. Osborne Village is partly the success it is today because it has a large Safeway in the center of it.

If downtown condos can get a tax break, maybe a large new grocery store can too.

Otherwise, we are going to have a migration out of the urban areas of the city despite best intentions.