Sunday, September 29, 2024

Winnipeg Sun Switches to Broadsheet

This is going on third week or so of the Winnipeg Sun's switch from the tabloid format it has had since its 1980 beginning. The paper initially was only three days a week and began evening delivery about a month into publication. Initially, the paper was black and white but eventually started having colour in their Sun logo. The publication was owned and operated by Winnipeggers, many of whom were refugees from the shuttered and beloved Winnipeg Tribune.  After getting to a respectable 34,000 plus circulation, Quebecor bought the paper and folded it into their national national Sun chain.

The early Sun was a little more serious paper in that there was no Sun girl. Editorial policy was more local and more encompassing. The tabloid format was streamlined and within two years some editions had a whopping 120 pages. The new Sun managers had a way of doing things that was more pugnacious and heavily conservative. It should be no surprise now that with a former Progressive Conservative cabinet minister, the new Winnipeg Sun should continue to be very conservative. However, it has picked up on local which the former owners seemed to have cut considerably in recent years.
Kevin Klein contributes regular columns and there are several additions in terms of columnists and writers on the paper. The relationship with the former Sun ownership continues but the focus there is all too often on the federal government. It is likely why Klein has tried to beef up local coverage.

The broadsheet format change is more of a hybrid. The broadsheet has a tabloid sports section in it. That section more closely resembles what a Sunday Sun was like. Even the logo more or less is the same. However, the front section has a banner type font reading Winnipeg Sun with a that at first glance looks like the Free Press even though the lettering is completely different. A rising sun in the middle of the letters is the one splash of colour in the heading. The stories and columns are laid out around a main picture. 

Inside the broadsheet is a fair amount of news and editorial. This seems to be true of both the Saturday and Sunday printed papers. It would appear that the newspaper is a work in progress so I am treating it more like what those 1980s days were like when the paper kept adding colours, days printed, delivery and the like. Klein keeps adding content because it is the only way to grow subscriptions.

Print newspapers are now quite dead yet. Just like books were written off far too early, newspapers and magazines can survive but they can't exist on classified and commercial ads. The big 6 gatekeepers such as Google and Facebook are starting to run afoul of antitrust. The fact that they can have anti-competitive practices hurts news media is only one aspect of concern. Their systems are capable of taking down banks, airlines and government services. The Microsoft update shows how badly we can be hurt. It cost billions.

Government can't pay media but these large groups that use content paid for by groups such as the Free Press and the Sun need to be held to account. If a new Conservative government drops supports for TV/film and media, it is entirely possible we see large areas of industry, news and production cease. 

Winnipeg is lucky as it has two local owners for their major newspapers. Kevin Klein will have his work cut out for him re-building the Sun. It still heavily favours a lot of national Sun/Postmedia content. To appeal to women, they will need different content than they do now. The New York Times gets thousands of subscribers for their game section. Other newspapers get reader for their advice columns. It was the Winnipeg Sun that was original home of Miss Lonelyhearts. There are many things that a newspaper is on a daily basis. But a big part of it should be informative and entertaining. 

The Sun really needs to build their Winnipeg Jets and Moose coverage. It is possible some relationship with the various sports podcasts is appropriate. This could apply to radio stations as well. Hal Anderson has contributed to the Sun for years. However, the paper could benefit from more restaurant reviews. More entertainment reports on what is happening in the city.

I get that this will be a piece by piece building project. And it won't all be about print newspaper. But it can be about news and information. And it can be a heck of a lot better than TikTok or Facebook.

Saturday, September 28, 2024

Pierre Poilievre Next Prime Minister of Canada?

Double digits poll support over the Liberals, it would seem the Conservatives are in a position to take a historic victory with a majority not seen since Mulroney. His axe the tax stand of removing the carbon tax is resonating with a lot of people. However, he hasn't made clear if he is dropping all the efforts in the area of climate change. For example, will he drop electric car support, geo-thermal, solar or electric power grids in favour of oil and gas. Some of their policies suggest they will sell water and allow resource development in presently protected areas. There doesn't seem to be anywhere to ask questions about if any of this is true. Increasingly, Conservatives are not responding to any media...even those that would seem friendly to it.

It probably isn't necessary. Poll numbers are great, money is coming in and even if the economy improves, it still doesn't change the message. The gas tax cuts will be the first things to go if and when Poilievre is elected. Climate change supports are likely to go next. The only thing that might mitigate that is what happens in the U.S. and the world. If the markets start to really change for oil and gas products, it will not help if Canada is not manufacturing electric vehicles and investing in other technologies. The German government has already said they are committed to energy such as hydrogen. Some Conservatives have attacked her for saying this.

On crime, the statistics are bad over the last ten years with rising numbers. While some numbers are lower, violent crime and property crimes have spiked. It isn't just as federal government problem. It affects provincial and municipal governments as well. The Conservatives say this all began when the Liberals took over as government in 2015. While this is true, it ignores the others levels of government, few of which were Liberal. Police themselves have said there are many factors leading to more violent crime, some of which are are at levels of government below the federal one such as social services, education and housing.

The Liberals though are taking it on the chin mostly from inflation. And even though it has come down to 2%, a lot of people are still carrying a lot of debt and renewing debt on such things as mortgages at higher levels. Bank of Canada rates have come down and are forecast to come down more but people are still hurting. After nearly 10 years, it very hard to win elected office again for the same leader. Nearly impossible. Pierre Trudeau couldn't do it and relied on the Conservatives under Joe Clark not being able to retain confidence. Poilievre is hoping to land a large majority to keep that from happening like it did to Joe Clark.

The government could collapse in October if the Bloc don't get some of their policies pushed through on seniors. They appear to be expensive promises and it is uncertain if the government supports them or believe they are necessary. The Liberals will likely weigh the benefits of supporting this plan, especially if it only buys a few week of confidence. An election could easily be before Christmas.

The Bloc Quebecois could end up being the Official Opposition in this scenario as they were from 1993 to 1996. The difference then was the Liberals were in government and campaigned to keep Quebec in Canada. Would the Conservatives do that or would they push them out the door? There are so many policy issues that largely remain unknown. A vote on the carbon tax is what Poilievre wants to make the election all about but he hasn't indicated much detail on other areas including defence and national unity.

Poilievre has said he will make it a priority about bringing down the cost of housing. This past year thus far has seen housing starts go up 4%. Lower interest rates should help builders with more starts but even with historically low rates a few years back, housing prices were rising. This isn't something the Conservatives can change any more than the Liberals. 

The Conservatives think inflation might go down if they eliminate the gas tax but it could increase spending in other areas which could raise inflation. It certainly did that for housing prices even when the overall rate was 2% inflation. The only thing that will really moderate prices is capacity. We don't enough housing units overall and haven't for many years.

The market is tricky that way. If there is a mad rush and bidding on houses goes crazy, people will not benefit. Supply chain issues, zoning and approvals all take time. Some areas in Toronto and Calgary are saying no to anything except detached housing. This happened when Harper was in power as well with Poilievre in cabinet. Now the Liberals are in power but provinces in Ontario and Alberta have conservatives governments and struggle as well. The truth is that all levels of government are responsible for this.

In some university towns in 2024, there are now rentals available because the federal government has limited students. However, this is now putting pressure on universities because of reduced tuitions. Meanwhile, some businesses won't have skilled people coming out of the university system leaving the job market unfilled. 

Clearly, we need more policy ideas from Poilievre if he is to become prime minister.  If tax cuts are the only thing offered, the possibility of rising deficit is strong. And if service cuts are in the offing, where will they come? In Manitoba, we saw a balanced budget under Pallister but it came at the cost of cutting constructions budgets, not settling contracts and a whole host of other spending throttling that was eventually was going to have to be paid later on. The NDP under Kinew seems reluctant to end some of those tax cuts even as the deficit grows. They will have no choice at some point because borrowing money to pay for tax cuts is just not on.

What a Poilievre government might do aside from cutting taxes, climate investments and the CBC is unclear. And will the social conservatives on the team have sway on abortion, IVF, assisted death and other areas? No one knows. It is possible his government might be as light on legislation as the Republican Congress in the U.S. is. The big difference between the U.S. House of Representative and Canada's Parliament is that a majority in Canada is able to achieve far more with less chance of a veto by the courts and Senate.

As far as foreign affairs goes, it is likely that aid to Ukraine could come into question. Some Conservatives are outright hostile to the assistance and our more supportive of Russia. As far as Israel goes, there are enough evangelicals in the party supporting a war there for biblical reasons. Canada's allies give the country less leeway to not pull weight. Presently, the Liberals are being pressured to get to 2% GDP for defence spending. Poilievre has said he is not committed to spending that much. It is unlikely he will be able to pull that attitude in NATO meetings. 

A sudden election could very well have Pierre Poilievre become prime minister without a clear direction. One possible clue of what is to come is to look at the Doug Ford government in Ontario which defeated the Liberals who had been in power for 15 years. Ford has won two majorities and seems set to win a third majority. Ford, unlike Poilievre, is a populist which propels his agenda. It remains to be seen is Poilievre can get people to like him as much as Ford. Moreover, there tends to be a trend in Canada that provinces often balance out political support. In other words, if Canada goes Conservative, it often results in changes on the provincial level.

Change is important in government. It also allows the opposition to rebuild and focus their role as critics and alternatives. At the moment, it is hard to see what change will be coming, especially with an election possible very soon.

Monday, September 23, 2024

Rogers Buys Bell Canada Enterprises Shares in Maple Leafs Sports and Entertainment

Rogers has become the foremost teams and facility owner in Canada with the purchase of Bell's shares in Maple Leaf Sports and Entertainment in Toronto. Rogers, which already owns 100% of the Toronto Blue Jay, will now take 75% ownership of the Toronto Maple Leafs, Toronto Raptors, Toronto Argonauts, Toronto FC, Toronto Marlies (AHL), Raptors 905 (Mississauga) and Toronto FC II teams. Rogers also takes majority ownership of the Scotiabank Arena, OVO Athletic Centre and the Maple Leaf Square. Rogers already owns 100% Rogers Centre (Skydome) and facilities in Florida for the Blue Jays.

The reaction of the Toronto media has been full on over the top. Some are saying it is brilliant, others are concerned about so much power with one corporation and others convinced it doesn't create winners in Toronto sports. All of those things can be true. Toronto will only have two major sports franchises not owned by Rogers. The Professional Women's Hockey League team and the upcoming WNBA team. 

There are numerous sports ownership groups out there. Few are as entrenched in one city covering as many sports as Rogers now does. The only ownership they presently lack is a NFL team. Few have captured one city as well as Rogers. Some of the debt from the purchase Rogers has made should come from NBA expansion fees, renewal of NHL TV rights and facilities rentals for concerts and events to name a few areas. Sports franchises continue to rise in value all the time.

Bell retain TV rights for 20 years for hockey and basketball for CTV and TSN. This is probably the least the government would allow. Rogers having complete control would be awful. It would likely violate antitrust in Canada and possibly elsewhere. After Rogers gobbled up Shaw, the Canadian government of any political stripe is likely to frown on the company if the act like pigs.

Bell is massively in debt after investing in their 5G network. They also have kept their dividend going for 16 years. Their corporate media buy of CTV/TSN assets have not served them well and they have cut 1/4 quarter of their workforce. The amount of debt has been weighing them down. Selling the teams while retaining rights is likely the best way to reduce debt if that is what they plan to do. Paying a dividend and not reducing debt would be dumb.

Rogers also has debt. It is why they are selling Monday rights to NHL games in Canada to Amazon for the next two years. That starts this year. For cable cutters who have Rogers and Bell, it is yet another reasons to stop cable altogether. Amazon already does Thursday Night Football and hired veteran Al Michaels but they have been graced with trash games for the last year. The first game for the NHL on Amazon is a more promising Pittsburg Penguins and Montreal Canadiens. They will also be doing a NHL talk show on the network.

Bell can't seem to run the conglomerate they have. The heavy debt, huge corporate bonuses and large dividend means they don't run their assets very well. The rely on government subsidy and protection. The six big global ad companies led by Google and Facebook hoover all the ad money. This is a world-wide problem and the U.S and Europe are acting on in antirust. The Liberal government in Canada has helped subsidize news and taxed companies like Google. The Conservatives have indicated big changes are coming including the likely end of CBC. It is unclear if this helps internet, media and telecoms in in Canada. They could all be close to folding and asking for international buyouts in the next years.

Bell keeps begging the government for help but it is hard to be sympathetic when they always cut, always acquire businesses and then cut them and give their leadership bonuses while having large profits and asking the government for subsidies or loosened rules to acquire more and provide less.

There is talk Bell might sell the antenna real estate it has all over the country. They are already downsizing real estate assets they have. Lower interest rates should help them. However, it has literally been decades of high prices and cuts over the years.

Rogers could make the sporting assets a real money spinner but they also seem to acquire assets, debt and high fees with other cuts in service. Meanwhile, telecom competition is growing while profits remain high. It could be Rogers feels more heat if their teams are chronic underperformers.

Friday, September 20, 2024

Party City Expands in Winnipeg and Canada

In 2019 Party City was bought by Canadian Tire and operates separately from Party City in the U.S. which started in New Jersey in 1986. The 65 Canadian stores were bought for $175 million and the plan was to double sales and then the pandemic hit. Now, Canadian Tire has expanded locations and focusing on holiday sales.

The company should not be confused with Winnipeg-based Party Stuff which has three locations in the city and has existed since since the 1950s and owned by the Glass family since 1982. Their Polo Park location on Century has been there since 1985. The family also has a Halloween shop on Regent in addition to their other Party Stuff locations.

Party City, owned by Canadian Tire, should be not be confused with the Spirit Halloween stores either. This is one of their big competitors although those stores are only in places less than half a year. It would be a mistake to think that party stores are only about the holidays certain times of year. They are for milestones and fundraisers as well as retirements and birthdays.

Winnipeg has rated two new stores of the four that are newly built for Party City. 

Locations of the four new stores:  

  • Party City Kanata, 501 Earl Grey Drive, Kanata, ON 
  • Party City Kitchener Sunrise Centre, 1400 Ottawa Street South, Kitchener, ON 
  • Party City Winnipeg Kenaston, 1765 Kenaston Boulevard, Winnipeg, MB 
  • Party City Winnipeg Polo Park, 1545 Portage Avenue, Winnipeg, MB 

The former EQ3 location at Polo Park is one location. Since the furniture store moved into the old Sears, the old EQ3 sport has looked for a permanent replacement. It held a Spirit Halloween store strangely enough. Party City should find the Polo Park spot a busy location. And for Cadillac Fairview, the store is a unique attraction.

The other location opened is the former Nygard store in Linden Woods. It seemed a big reach to find a single retailer to take over the large space but Party City has filled the whole spot.

The one stop aspect of a party store is favoured by many. Walmart and Costco just don't carry as many balloons and knick knacks, decorations. The party stores also cover other religious and ethnic celebrations well. It just don't feel like a Christmas store. Halloween though has grown into an enormous industry in the last years.
In Winnipeg's case, the expansion of some large Party City stores fills some retail holes that have remained open for some time. The loss of some major retailers with U.S. ownership was substantial. This has been mitigated by Canadian companies buying U.S. assets when the opportunities came. In a lot of cases, U.S. liquidators were only interested in shutting things down.
In the case of Party City, Canadian Tire took it over in 2019 and folded into its retail operations. It means Party City items are in Canadian Tire stores as well. This has been a successful marketing move for Canadian Tire as they can get clothing, party and other supply chain movement into their stores.
Having Canadian Tire as owner gives a huge amount of stability to Party City. The Canadian retailer is simply one of the best and has fund ways to be profitable and growing even with huge American competition. As for other competitors such as Party Stuff, there appears to be room for them as they also rent party tables, equipment that so many people need to run a successful party.  For the consumer in Winnipeg, it means many options.

Thursday, September 19, 2024

More Housing for Seasons in Tuxedo Site


The Seasons of Tuxedo and Seasons in Tuxedo area has been non-stop construction for more than a decade. IKEA has been up since 2011 years and the area on both sides of Sterling Lyon have been transformed. From zero population back then as industrial land, it now has thousands living and working there every day.

Krispy Kreme and Arby's are but the latest additions as the last spots fill up in and around the Outlets of Seasons mall. In a spot  across the street from Frankie's are zoning approvals going forward at 457 Sterling Lyon for two 7 storey apartment buildings with 1, 2 and 3 bedroom units. Three bedrooms in Canada is the unicorn of multi-family dwellings. 

The Seasons district 13 years ago was the former CN Intermodal site but now it is an example of infill mixed development. The site at 457 Sterling Lyon is one of the last sections large enough for apartments to go. The other apartments in the development have filled fast. It is a testament to the idea that mixed developments are the right direction as they were in the past. The Courts of St. James and the Holiday Towers are among a few long term examples of mixed developments succeeding for decades. However, they fell out of fashion for many year and some places, especially downtown have no balance between residential, office and retail.

The new apartments will be walking distance to any of the amenities one might expect in any neighbourhood. The Red River Co-Op grocery store and a few pharmacies have the basics covered. However, there also doctor, dentist and vet offices within walking distance and a bus terminus is located right by the mall. A sidewalk on the south side of Sterling Lyon is sadly lacking though.
Winnipeg is still need of many apartments for its growing population, rising rents and low vacancies. As has been said many times now, the affordable housing of 20 years from now is being built now. And the only way to lower rents today is to build capacity in the system. The Seasons site is fortunate to not have to face opposition from residents like so many other areas do. Since it was industrial before, the developer has been able to get quicker approvals. Polo Park and the surrounding area have been trying to get approvals for housing for more than a decade and the wait continues. There is no doubt that people would move to and live in the area if the option was there. Undoubtedly, many other shopping areas of the city will see apartments go up as the surface parking lots take up a lot of space.

These apartments being built at Seasons will have some underground parking as well. Many apartments have storage for bikes as well since the Harte Trail is so close and people are using for quick commutes and recreation. Still, the attraction of such apartments is how walkable everything is. It likely takes longer to get your car than it does to walk to the store.

Look for these apartment to go up some time around 2025.

Thursday, September 12, 2024

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.

Tuesday, September 3, 2024

Media Changes in North Dakota and Minnesota

Media shake-ups abound on both sides of the border. in 2024, Winnipeg Sun was spun off from National Post media group to locally owned Kevin Klein Group. It marks the first time that both major newspapers in the city have been owned locally in their history. For the Sun, it has led to more local news columnists. It also led to breaking more stories.

The Winnipeg Free Press has also added more local columnists over the years even if some have been controversial such as Charles Adler. Local is what newspapers and TV/Radio news need to stand out and yes, make money. Large conglomerates cut and cut again and then often just close and add the tax loss to write off debts. They are rarely builders. Free Press ownership is shared by Winnipegger Bob Silver and former Winnipegger Ronald N. Stern.

Two local owners of major newspapers in Canada is so unusual that is you can count on three fingers the cities they are in. For the west, it is only one city: Winnipeg. And so far they are fighting a battle against what many in Europe call the six gatekeepers: Amazon, Alphabet (Google), Apple, ByteDance (TikTok), Meta (Facebook) and Microsoft. Even those who receive no government money, companies such as these can control access to their platforms. The breakdown of Microsoft update shutting down the Internet is one 2024 example of how bad things can get. And digital ad money gets swooped up and AI from these giants creates content mined from creators all over. In other words, an independent journalist who breaks a story can see it used by the biggies and not get paid for it.

The gatekeepers can do this to even larger companies too. Artificial Intelligence is being used to create new stories. But where does that information come from? It is often mined from companies such as the New York Times. If the largest newspapers, media companies and the like are vulnerable from the super giants, how do the rest of us even cope. Those saying that the government tinkering in business ignore the fact anti-trust moves are to keep things competitive in a capitalist market. For example, the modern Internet became possible when AT&T was broken up. It triggered some of the biggest investments in telecom ever seen which was essential to a widespread, faster Internet.

The questions of what to do about the supranational giants will remain the question of the day. In recent weeks, Google's search engine has been declared a monopoly by the U.S. government. It remains to be seen see what the federal agencies will decide to do. In the meantime, news and media companies are coming up with new strategies to stay relevant and profitable. North Dakota and Minnesota have seen some of their largest media companies make moves in 2024.

The Minneapolis Star Tribune has dropped the Minneapolis part and it is now Minnesota Star Tribune. This would be in keeping with their sports teams that have always been wise to using Minnesota for their NHL, NBA, NFL and MLB teams without fail. Minneapolis and St. Paul are truly Twin Cities and there are communities of some size all through the metropolitan area. Changing the name makes sense.

A competing broadsheet in St. Paul, Minnesota also dropped their city name in favour of just Pioneer Press. It is not owned locally and have experienced massive cuts over the years. In 2006 they had over 200 unionized writers. By 2023, that number was down to 23. The MediaNews Group that owns the paper and has a reputation of cuttings. Still, like the Star Tribune, it is trying to extend its readership and their website to include all of Minnesota. Their website is twincities.com which doesn't even mention Pioneer Press.

The Twin Cities also has MinnPost.com which is a non-profit digital news for the region. TV and radio stations have substantial news and sports content in Minnesota as well as North Dakota. PBS has extensive coverage of the regions. While there is less local ownership of TV and radio stations in big markets likes Minneapolis, there remains some. In this way, they are not much different than Winnipeg where nearly all local TV and radio has ownership outside Manitoba.

It is the digital audience that everyone in media is trying to capture. Just as landlines are being cut, people are cutting their print newspapers and cable. The problem is that digital ads don't pay as much as print or TV ones. Plus, the gatekeepers scoop up all the money that is there as well as use the content for their own ends. It is the definition of antitrust. 

What the big digital companies don't do as well is news that people might want or need locally. Reddit has discussions on local stuff but it isn't curated in news, weather and sports categories in the way other media is. To that end, local news and TV/radio in North Dakota and Minnesota are offering much more local appeal. Having a local meteorologist reporting is standard for TV stations in the U.S. where some of the wildest weather keeps them on our toes. Winnipeg does not make this a priority. Also, the new digital sub-channels that a station like WDAY Fargo as makes local sports a priority. Al the high school football games in the Fargo region is on the WDAY sub-channels. We don't have digital sub-channels on TV or radio in Manitoba yet and none seem to be happening in Canada. It would appear media empires and the CRTC just don't see the need. If it is Canadian content guidelines that are required, there would seem to be enough library material of older shows to put in place.

In terms of Minnesota, the 157 years old Star Tribune is hiring more writers, not less. The are focusing on placing more reporters outside Minneapolis-St. Paul and covering areas such as business, downtown, regional state issues and investigations. Cannabis stores are new in Minnesota so they will cover that. This is a familiar area for Free Press who covered cannabis with a dedicated journalist for a while. Overall, the state-wide focus means that the Star Tribune will be reaching large audiences but still remain hyper-local. Large media networks just don't cover those areas except in general terms of news, weather and sports.

There will be a lot of eyes on the Star Tribune's investment in expanded coverage. Glen Taylor, the billionaire local owner, is spending new money on top of the $100 million that he paid for the paper in 2014 has turned the paper around. It makes money and has maintained around 225 writing staff and a total of 1,000 or so altogether. The Free Press, by contrast, has 50 reporter and 580 total staff. The Free Press also have community newspapers, Brandon and Steinbach journalists which adds to total writers in Manitoba.  

The Winnipeg Free Press, like Star Tribune, have rich owners. The Free Press is owned by Bob Silver from Winnipeg and Ronald N. Stern, formerly from Winnipeg but now based in Vancouver. Bob Silver is the director in charge. Stern owns companies valued just under $2 billion including many based in Winnipeg. Some wags have suggested that only papers with deep pocketed owners, preferably local, will ever invest in local media. Examples abound in Canada and the U.S. of this.

Digital subscriptions, as the New York Times has shown, is the way for the newspapers to find success. However, the big six grow ever more powerful so that that they can simply use artificial intelligence to create news stories largely harvested from what others report. All the money flowing to the big six even threatens the major industrial nations. It is the inherent danger if antitrust is not pursued. Total monopolies bullying nations.

The Star Tribune is probably not finished evolving. Both the Star Tribune and Free Press are doing newsletters and podcasts. Those are likely a lot of better for a newspaper than X/Twitter or Facebook. As the fifth largest newspaper in America and the addition of hiring six more Minnesota reporters, it will be creating considerably content.

In Canada, TV and radio conglomerates such as Corus, Rogers and Bell use their news teams across platforms. However, they have all made cuts and likely overpaying for show rights in the U.S. This makes them routinely ask to cut Canadian content. Rarely do they use Canadian-made content such as news as part of their commercial success. The mergers and acquisitions and overpaying for product brings inevitable cuts. And for what? Some of the radio and TV stations that get bought get closed down. Often enough there isn't even an attempt to sell the enterprise. Luckily, in Winnipeg, the National Post sold three papers including the Winnipeg Sun to Kevin Klein so they could be owned locally. There is a strong possibility that the papers might have been closed otherwise.

Throughout North America, the rate of closures is about two newspapers a week. Often this mean no local coverage of any regional issues which can lead to poor performance from local officials who face no scrutiny. You don't need a billionaire for a small media company but you sure could use a leading citizen or two interested in running and operating something that can't be treated like a franchise 
with identical reporting.

The Star Tribune has a billionaire owner in Glen Taylor and a local interested in investing in more reporting. The competitive market in Minnesota will be very interesting to keep an eye on. However, Minnesota is not the only state to keep an eye on. North Dakota has seen their own local media become regional in focus.

In the case of North Dakota, Winnipeg has been able to watch the growth of this media company much more closely. Anyone from Manitoba has been able to read the Grand Forks Herald and Fargo Forum newspapers has been exposed this Pulitzer-prize winning companies. The Herald won the Pulitzer for its coverage of the 1997 flood and fire which flooded and burned down their building.  The Forum won the Pulitzer for coverage of the 1957 F5 tornado that killed over 100 people. It was the northern most F5 today until the Elie, Manitoba F5 in 2007. 

The Black-Marcil family have built their business from the Fargo Forum platform. The newspaper was started in 1878 and took on the name Forum in 1891. The Black-Marcil family have owned it since 1917 and took over the Grand Forks Herald in 2006. Forum Communications is also a TV and radio owner. Most in Winnipeg will be familiar with today's WDAY (formerly WDAZ) that has been on the cable band for decades. Along with Prairie Pubic Broadcasting (PBS), these two station remain the only North Dakota stations still seen in Manitoba.

Forum Communications, from their Fargo headquarters, has run a large news team from their newspaper as well as their TV station. WDAY began in 1953 and was originally a NBC affiliate with a helping of other network programming from CBC, ABC and Dumont. A sister station in Grand Forks was started in 1967 because the region needed a station since Fargo's signal was now powerful enough to reach the area with CBC Winnipeg's broadcast. WDAZ ended in 2006 except for a news bureau of WDAY.

The Marcil family has had to adjust to the size of the state and but to go where their audience is. The state capital is down the highway from Fargo and has to be covered so a Forum bureau reporter is based there. The WDAY network maintains a bureau and sales office in Grand Forks. All of the newspapers that Forum Communications has purchased from big media companies have been folded into a news service that covers North Dakota, Minnesota and South Dakota.

In 2024, Forum Communications continues to pick up independent TV stations in places like South Dakota with the intent of establishing a regional media presence. The company has been expanding rather contracting. While it was a blow to Grand Forks to lose WDAZ, the trade off has been great state broadcasting of local sports throughout the region including Grand Forks. No national media corporation will ever be interested in this type of work.

Forum also owns WDAY radio but literally everything in radio is owned by huge conglomerates. Forum contracts out management to a North Dakota media group. Almost everything in American AM radio is conservative or Christian broadcasting. In many cases there is not a single employee working aside from some technical person. It has been problematic in disasters as there is often no one to even broadcast emergency signals as mandated by the FCC.

Bismarck, which is the second largest city in North Dakota, literally has no media that is locally owned. Were it not for  Forum Communications, it would not have any North Dakota owned media. So much of newspaper, TV and radio industry is controlled from somewhere else and often, they would rather shutter the business than attempt to sell it. It has been Forum Communications that has picked up these assets when they have come available.

In Canada and the U.S. we have seen newspapers, TV station and radio stations closed down with very little attempt to find buyers. Assets are trades by big corporations and then dumped after after a while. It is only local owners who will care such as we see in Minneapolis and Fargo or in Winnipeg. And the goal of the local owners is to expand coverage and reach a larger regional audience.

Thursday, August 29, 2024

Specsavers Opens in Winnipeg

Specsavers, a corrective lenses store has entered the Winnipeg market in a big way. They have opened two stores in CF Polo Park and St. Vital Centre and a third one will open in SmartCenters Winnipeg West also known as Unicity. The one in Unicity was formerly Orange Theory gym. Above is work being done to meet their September 12 opening.

Glasses are incredibly expensive even when purchased from Costco or Walmart. Specsavers will be offering glasses at $39 for single lens until September 22. Progressive lenses are every day priced at $149. Seniors 65 and over get 50% off starting September 9 for lens upgrades.

Specsavers started 40 years ago in the UK and entered the Canadian market in 2021. They have a 125 locations in Alberta, B.C. and Ontario. These will be the first Manitoba locations. Worldwide they have 2,700 locations run by optometrist owners. That is roughly 44 million customers.
Competition in the glasses businesses has been difficult to come by. It comes as a shock to many Canadians that many of the optical shops out there have the same corporate owner. There used to be a lot more competition out there. Specsavers should help in this regard. And the fact that they are opening in large malls is welcome as so many shops over the decades have closed in those locations.

Tuesday, August 20, 2024

1984 Democratic National Convention Tale of Two Cities Speech - Mario Cuomo

I don't remember too much of the 1972 Democratic and Republican conventions as a kid except what might have been on Canadian news. We had only moved into our new house in 1970 and a had a black and white television with rabbit ears and really only two channels. CBC French channel really didn't come in that well in River Heights without a rooftop antenna. We got Videon cable in 1971 and a colour TV in the same year. The colour TV was a gift from my mom's parent's. 

It was our first exposure to ABC, CBS and NBC at home. Our family had begun to venture down to Grand Forks, North Dakota the same year and had discovered Saturday morning cartoons. We would stay at the Town House motel as it had a pool and all shopping at the time was downtown as Columbia Mall was a few years away from being built.

In 1972 in our travels to the States, I noticed the political signs for Republican and Democratic candidates and even in elementary school, it was an impressive site. Pretty much even before elementary school, I was aware of politics through the news. The words Vietnam was something I heard on the news all the time. I knew Canada was not in it but our neighbour to the south was. 

As a child in Canada experience the joy and pride of a new flag, a 100th birthday party for the country and a new prime minister called Pierre Trudeau, there seem to be a celebratory mood everywhere. This was followed by Manitoba's birthday in 1970 and Winnipeg's birthday in 1974. Meanwhile the U.S. seemed to be in chaos with wars, assassinations and street riots. 

Travelling to the U.S. at length showed the U.S. was much more than that. North Dakota and Minnesota were familiar territory and comfortable for those in Winnipeg travelling. It had exciting differences too. Cartoons for one. Cereals for another. And for 7 year old me, the pageantry and colour of a U.S. election was hard to look away from.

As mentioned, I was a bit too young in 1972 to stay up late watching the U.S. conventions. On a school night, it would be unusual for me to be up past 9 and that is when things were just getting going for conventions. However, by 1976 I was old enough and aware enough about real differences in the U.S. and Canada. Our family travelled months in the U.S. in the early 1970s which gave a different spin on what one saw on TV and through entertainment.

The amount of media exposure a kid could have by 1976 to the U.S. was overwhelming. And with only a dozen TV stations, the shared experiences via that medium were more widespread. Kids all over were watching Six Million Dollar Man in 1973. Today, there is far more diversity in entertainment offerings. May don't watch TV at all in favour of video gaming. As far as news goes today, if kids don't see it on TikTok, it often is something they don't know about. 

As a little kid I remember the whole house watching the Apollo lunar landings in 1969. The broadcast were watched by nearly 90% of the population. Today that number would seem to be impossible no matter the newsworthiness. CBC covered the landing for hours just as all world networks did. The National on CBC TV was on at 11 pm so my exposure to news was mostly from the local news at 6:30 PM, Yes, you heard that right. CBC's 24Hours news program ran 6:30 to 7:30 until 1977. In our house, we had CBC Radio on and listened to the national news at 6 while eating at the dining room table. With no microwave, toaster oven or other cooking devices, dinners took longer to prepare. In 1971, we'd listen to As it Happens at 6:30 PM with Barbara Frum before the TV might go on.

The 1972 U.S. election saw Richard Nixon re-elected with the biggest majority ever by a Republican. The U.S. economy was booming even as the Vietnam War continued. The Canadian economy, by contrast, was slumping and the Trudeau government was re-elected with a minority. In Manitoba, it meant the only Liberal representation was businessman James Richardson who served in the cabinet. As as kid I saw how Trudeau went from loved to hated in four years. It was mystifying. However, in retrospect the Canadian and U.S. elections happened almost at the same time and a turn to Republicans in the States had some impact in Canada as people compared economies. The 1972 Summit Hockey series was on at start of campaign but did little to help Pierre Trudeau make people forget inflation.

Since Canada has different part conventions, there is no excitement of selecting a leader and policy debates can be a little dry. Both the Liberals and PCs had leaders in 1972. Even Nixon has to secure his party's nomination despite being incumbent president. All I remembered from the 1972 Democratic National convention in New York was that it was chaotic. The Vietnam War still raged on but an extremely Democrats were not able to capitalize and ran on a very liberal platform. Their nominee McGovern was not able to balance the ticket with a big city Democrat with Kennedy-like popularity and by the time he secured the nomination he ended up giving his acceptance speech around 3 AM. Nixon would go on to beat McGovern badly.

It would be the following year that I began delivering the Winnipeg Tribune. I had started filling in the year before and started my own route the next year. For kids, comics was often the first thing they read in the paper. Often sports might come next. I was already interested in the news so as a carrier I would usually read the paper cover to cover. People in Winnipeg were either Free Press people or Tribune people.

The Vietnam War was still a major issue but something called Watergate began to emerge in the U.S. and appearing in the papers in Winnipeg. Nixon dominated the headlines. It was around 1973 that I started watching American evening news more regularly. At first it was CBS and Walter Kronkite, then some NBC with John Chancellor. However, because ABC kept trying to reach new audiences, I would tune in to them and often keep watching their programming into the evening.

I mention the networks because CBS, NBC and ABC all build large studios at Democratic and Republican conventions. It is a rather impressive fare when seen with the backdrop of every state having markers for their delegates and the large convention arena seating. As mentioned, I was a bit too young to have been following the 1972 U.S. conventions but the 1976 ones were a different story.

In 1975, Saturday Night Live started on NBC and in the central time zone, it was on at 10:30 PM. It was the perfect program for weekends for younger people. While I had seen presidential and political humour on Johnny Carson, the craziness of SNL was unparalleled. Nixon was gone but they managed to parody Gerald Ford with pratfalls done by Chevy Chase that were hilarious.

It was shocking to me how popular Nixon was in 1972 and by 1974 he was most hated. My memory of him leaving out the back door by Marine helicopter while Ford took over in the front door remains with me today. The shocking decline felt familiar to me as in 1968 Trudeau was super popular but by 1972 had fallen hard.

I had been interested in politics right from Kindergarten. A teacher had told my parents that I shouldn't be worried about the Arab-Israeli conflict. I obviously had talked about it at school after listening to the news at home. By 1973, I was seeing a war in Israel and was still asking questions but school was a great place to ask them. My school text often had American references to presidents in them. Canadian history was thin. World history even thinner.

By 1976, I was able to take in the Republican and Democratic National Conventions. Gerald Ford had to fight a contested nomination with a few challengers such as Ronald Reagan in the convention in Kansas City in August. I was unfamiliar with the primary system but I do know that there were many who were not happy in the party with the Fall of Saigon, détente and what happened with Nixon's resignation. 

By contrast, the Democrats seemed more upbeat and Jimmy Carter, Governor of Georgia ran as an outsider. In 1975, our family had passed through Georgia on the way to Florida. I remembered Carter's name from our travels there. Carter chose Walter Mondale, the senator from Minnesota. 

The one thing I really remembered was the keynote speech from the Democratic convention in  New York was Barbara Jordan, the first black woman to address at convention. She had recently been elected to Congress in Texas. It was a great speech and was the first time I had heard of a keynote speech before. It was amazing and surprisingly, no duplicated in the 1980 convention.

Jimmy Carter won the election but a terrible economy, price and wage controls and Iran taking American hostages crushed Democrats in the polls. Ronald Regan was back. I remember a little about the conventions. They were a little chaotic but then the who election cycle was overshadowed by American hostages. The Republican convention in Detroit had a keynote speaker who spoke with no notes for 37 minutes and probably set the tone for what was to come with Reagan. It really was a movement.

I won't go into all the conventions but in 1984 Reagan's speech to Republic National Convention and Mario Cuomo's speech were among the finest ever given at a convention ever. I have included Cuomo's speech above.

Skip the Dishes to Fire Hundreds

The downtown head office in True North Square of Skip the Dishes will look a whole emptier today as 100 corporate staff are laid off and 900 operations staff. In Winnipeg the number might be 350 staff. Four floors in the True North tower were Skip offices. It was estimated that in 2019 that nearly 2000 employees were in Winnipeg.

Skip has has three top execs in one year so clearly something has been going on there. The purchase of GrubHub for billions in 2021 has been a major drain on the company, a huge mistake. The heavy debt and the reduced demand post-pandemic on takeout has hurt the multinational company.

Further details likely to be released but with so much debt, Skip is struggling in 2024 and is looking to cut where it can.

Friday, August 16, 2024

Second London Drugs Coming to Polo Park

Polo Park goes through changes every ten years or so. Sometimes it is a surprise such as when Sears or Zellers closed and sometimes it is expansions they take on themselves. It is what make this particular shopping center the number 1 one in Manitoba and one of the tops in Canada.

The second floor has gone through a few changes. After many years as department stores like Brettons and Zellers, the mall decided to do a horseshoe of a variety of stores. Some have been very successful such as Tommy Guns will be moving to a larger location. Others unnamed will close. It was revealed some others like Famous Footwear are moving.

London Drugs will be the new store taking up second floor space at Polo Park. A few more stores are to be closed or moved before that happens. Below the Belt and Urban Outfitters will no longer be in the mall. Build-A-Bear has already moved. It will be sometime in 2025 that London Drugs will open which will be 25 years since they first arrived in Winnipeg at St. Vital Mall.

There is already a Shopper's Drug Mart in the mall. However, London Drugs is also known for electronics and other items that Shopper's Drug Mart does not carry. There are over 80 stores of London Drugs across western Canada. It is curious why Manitoba has only had one for 24 years when Saskatchewan has 5.
The horseshoe part of the mall has had more difficulty attracting and retaining stores than other parts of Polo Park. A pharmacy and store like London Drugs is a game changer. It will stabilize that area of the mall and make it and attractive stop for those not wanting to go all the way to St. Vital Mall. 

The War on Taiwan Movie【零日攻擊 ZERO DAY】 官方完整版前導片 Official Full-Length Trailer


Taiwan is roughly 130 kilometers off China's mainland. It is separated by the Strait of Taiwan. Since 1949, it has been governed by the Republic of China (ROC) which was on the losing side of the Chinese civil war that saw the Communist Party take over China as the People's Republic of China (PRC). Till the 1970s Taiwan held fast that they would re-take all of China and most western countries would not recognize the PRC as the legitimate government on the mainland.

Canada would recognize the PRC as the government of China in 1970. It would take till 1979 for the United States to do so. And while it looked like Taiwan was being displaced and was, they received from the U.S. and other countries specifically from the 1950s on because it was anti-Communist. During the Korean War in the 1950s, the U.S. as well as Canada were at war with North Korean as well as China. 

China's attempts to take Taiwan and associated islands was rebuffed and the U.S. helped defend Republic of China with U.S. military assets as well as the equipment. The Taiwan Strait might as well have been a moat. And it wasn't lost on China that the U.S. would use nuclear weapons to defend Taiwan.

The Korean and Vietnam Wars meant enormous U.S. spending in the region and Taiwan benefitted in the 1960s from economic reforms. Huge growth was the result. Meanwhile mainland China was struggling with a planned economy and Communist governance. Taiwan also had a dictatorial government that saw many thousands arrested or executed but the rising economic fortunes continued year after year.

By the 1970s, martial law in Taiwan began to weigh on the population. Many overseas Chinese saw the freedoms in places like the U.S. and yearned for not just economic success but personal freedom. Government crackdowns only stiffened the resolve. In 1987, martial law ended and elections began to be the norm The people of Taiwan began to assert their vision of their country's governance even as the Communist regime pushed back. It seemed they were more wary of a multi-party democracy than they were of a nationalist military force in control of Taiwan.

Taiwan is now a fully formed democracy with regular elections and has moved back and forth between the nationalist KMT and newer parties forming government. From economic miracle to a democratic model, the 23 million people in the densely packed islands have shown remarkable resilience. While the One China policy may still exist, Taiwanese have shown pride of place and no longer harbour ideas of ruling mainland China. The 23 million people of Taiwan have been trying to forge their own path and it is a democratic market economy.

China, on the other hand, has created economic success but any sign of democracy is crushed ruthlessly. Threats to Taiwan are a routine occurrence and calls for invasion come often. China has not ruled out force to bring Taiwan under their control. Understandably, Taiwanese are resistant to that and wish to just engage in a non-hostile relationship. Were it not for the United States and a fairly prickly defence Taiwan has invested in, China would likely take Taiwan if it could.

Taiwan has a fairly significant military force. At times they have painfully had to beg countries to sell to them weapons. And when that hasn't worked, they have built there own. Compared to Canada, Taiwan has substantial navy, air force, army and marine units. If they were brought to full defence, it is likely they could land more than a bloody nose to China but ultimately couldn't defeat it. It is the United States that holds China back. Sink a U.S. carrier and America will respond.

Canada and Taiwan maintain trade offices with each other and Canada has sailed military ships through the Straits of Taiwan in favour of international shipping lines. This has supported Taiwan while irritating mainland China. However, international travel lanes are essential to trade and China laying claim to vast areas in the region and creating artificial islands has been causing fear with many countries.

Taiwan has been facing this since 1949. There has been several military flare ups over the years and even now, China has navy and air assets squeeze in and intimidate. There is still support for one China policy in Taiwan but real fear about loss of autonomy and persecution if the Communist government does ever take over. It is clear there is discussion that seems to lead to a mutually happy joining. Taiwan's mere existence seems to whip up Beijing's ire.

The business climate of Taiwan is well known but the community has many artists, particularly film and television. Netflix has numerous offerings from Taiwan this year and none from China. This is largely in part due to China making it hard for western partnerships. Hong Kong once produced 300 films a year but none for Netflix this year. Taiwan used to invest heavily in film production there but the cold chill of recent relations has meant Taiwan is turning to home investment in the industry and western partners. Meanwhile Hong Kong suffers more stringent rules and caters production to China. This it finds it's home audience in its own city in decline as tricky subjects like police corruption that moviemakers used to love in Hong Kong can't be done as they once were. 

With this in mind Taiwan has repatriated money that they used to invest in freewheeling Hong Kong industry including film. It isn't a surprise then that Taiwanese TV and filmmakers have thought about mainland China and what it might be like if Taiwan was taken by force. The result has been a TV series called Zero Day that has recently released a 17 minute trailer that can also be watched in English. Why English? Because this is just as much for western audiences as they are for Asian.

The actual series won't come out till 2025 but the trailer was released during a air raid siren drill. The trailer obviously got everyone talking. The producers consulted widely and researched how a forced China takeover of Taiwan might overwhelm the island and isolate it from any potential help. Quite rightly they identify how China would have many pieces already in place in Taiwan before they acted. They would need a pretext such as a false flag attack against Chinese aircraft, they would need people on the ground to sabotage transportation, communication and utilities. Everything in the trailer sounds plausible and worse for Taiwan, it seems likely. 

China has already test-drived filling both air and water with military assets. It remains to be seen if the U.S and other allies would attempt to keep those routes open. If there was fear that American and western citizens could be harm's way, they certainly would. Any mixed messages from Taiwan might stall that help. This is why verifiable communications would be essential. In the TV series, it is suggested that China would use deep fakes to confuse the population. It would likely confuse allies as well. It is for this reason that the U.S. is about to build new bases in The Philippines within 150 kilometers of Taiwan to support that area if needed. To the north, the U.S. already has massive bases in Okinawa.

It is likely Zero Day will see interest in other countries as well. The security of Taiwan has always been the back of the people's mind but the level of wariness has increased. The one area that was not really detailed in the trailer is what Taiwan might look like following a takeover. I guess we will have to wait for the sequel to find that out! 

Wednesday, August 14, 2024

More 7-Elevens to Possibly Close in Winnipeg

In a meeting with 7-Elevens CEO and officials from Canada, Winnipeg City Council was warned that 10 more of their convenience stores face closure over crime issues. This is a unique warning for Winnipeg as the company has tremendous success in the city but shoplifting challenges have outpaced all their considerable security measures. The time-lock safes, the LED lights, the security cameras, the removal of lottery tickets and tobacco from easy access at night and the low amount of cash on hand has not been enough to stop wholesale removal of product. Police regularly stop at 7-Elevens for coffee and Slurpees. It still isn't enough.

Some helpful people have suggested liqour store-like IDs and locked doors. This would an expensive add on as a full time person has to be doing security. Heaven help us if every store went this way then it would lead to line-ups the likes we haven't seen since Covid. Perhaps there is a way to streamline this but it puts the onus far too much on the retailer. And to be fair, 7-Eleven already does a considerable amount on security.

The ten stores likely to be closed have not been identified but there are several such as William and on Ellice that have shuttered and remain boarded up. No other business has seemed interested in the properties. And why would they? If heavy security 7-Eleven can't withstand it, who can? Some areas of Winnipeg that are a food and convenience store desert will be even more so. 

The province has stepped up policing with supports and retailers and restaurants are asking for it to be extended and expanded. The feeling is that some crime issues manifest from seeming lack of consequences. Add to that a real increase in toxic drugs that result in addiction and more desperation.

So what stores are in danger of closing? They are: 1895 Wellington (Airport location) 119 Salter Street, 1184 Portage Avenue (Wolsely location), 909 Lorette (Fort Rouge location), 665 McPhillips, 120 Keewatin, 456 Talbot, 891 Arlington, 1485 Inkster Blvd and 815 Ellice. At some of these locations stock was entirely removed from shelves and walked out the store.

One suggestion was for doors to be locked and only a few people let in at a time. In the U.S. sometimes only a take out window is open. Some suggested security guards full time but even grocery stores are finding only police actions and consistent arrests will put a stop to it. 

Others will blame society, police, housing, poverty, drugs and say only a re-make of society will be helpful. That likely won't save the grocery and convenience stores. Certainly police arrests of some people with tens of thousands of goods should give some idea how pervasive the problem is. The loss of so many stores is an emergency requiring provincial and city effort.  Having only two city councillors meet the officials from 7-Eleven might not be enough. The warning should be enough to reach all elected officials on holiday. 

Tuesday, August 13, 2024

Dakota Foods Closed

Dakota Foods closed this August 11 weekend although any stock left Monday and Tuesday could be sold as well. The Clement family still has their location on Portage Avenue. In a day where every grocery store can contribute to a neighbourhood, the store at St. Mary's Road struggled with shoplifting, higher lease prices, inflation and labour costs. Most retailers have said the police strategy for shoplifters is starting to work and have asked for an extension but it is not to save the 60 workers at the store.

The old Safeway design of the building is still visible on Dakota Foods. It isn't clear what will replace the old store. Ideally, it would have been another grocer. Dollar stores generally won't be sellers of dairy or meat. As mentioned in this blog, we could really use discount grocers in Canada and still don't have any.

There were a lot of sad faces in St. Vital over the closure. A lot of memories of the 20 years for Dakota Foods store as well as as groceries past. Just prior to Dakota, it had been an IGA store. It is a very busy commercial area by the grocer. It seems the perfect place for that type of business to succeed.
Schools, apartments and various roads intersect by the store. Gimli Fish Market is nearby and successful. They may be hurt somewhat by the closure depending on what goes in the space left by Dakota. 

Grocery stores drive regular traffic to an area. While department stores have reduced capacity as anchor stores, a grocery store will have people from early in the morning till late at night. A shopping mall relies on this for success. It is also essential for apartments, transit and other services to have commercial hubs or areas become food deserts and people have no choice but to travel far for essentials.
It is the smaller grocers that have really suffered. One example: Academy Road had three grocery stores on it till at least the late 1980s, early 1990s. Now there is one specialty grocer. In general, people in River Heights have to travel outside their neighbourhood for grocery, banking and pharmacy. And now people in this end of St. Vital will have to do the same thing. 
Across from Dakota Foods were apartments, a hotel and many businesses. It truly was a hub.
The cross section of streets by Dakota Foods should still be attractive to some businesses.
Fast foods restaurants across the street.
There is already a Dollarama across the street so some grocery items are still sold nearby. Just no dairy or meat sections.
It is certainly the end of a multi-decade era of a grocery store where Dakota Food was. A sad time really. We can use all the competition in the food industry as we can. And something local versus travelling far is more affordable for everyone.