Winnipeg Retail

[CoryB]

Originally Posted by cllew

Safeway to sell 4 stores in Winnipeg as part of the takeover by Sobey's

1441 Main Street
77 Vermillion Road
1120 Grant Avenue
850 Dakota Street

Except for Main St, almost seems like a group of stores that was hand picked for a possible wide roll out of Whole Foods in Winnipeg. They have announced plans for Canada and the demographics of these areas would seem like an okay fit for them. It is also interesting other relatively close stores like the Portage and Caliver/Unicity stores and the two on Lag are not on the list.

Originally Posted by cllew

Also the Sobey's owned Price Chopper at Pembina and Grant to Close

Always felt like it was a little out of place, perhaps an attempt to test a brand that did not really work well in this market? Could have just been a convenient time to wind down that brand here.

Originally Posted by cllew

Not good news for the people in the North end as with the earlier closure of the Econo Mart next to the Safeway there will be no major grocery stores in that area unless an independent operator picks up one of the two closed stores on Main St.

Always felt a little odd that Loblaws resurfaced the parking lot for the Extra Foods shortly before it closed and they continued to hold onto the lease. North Main (Riverbend/West St Paul) is a fast growing area and could likely support a new full line Loblaws store. Perhaps they will purchase the adjoining Safeway site and build something new and bigger there?

[Danny D Oh]

Did the Competition Bureau suggest to Sobey's which locations to sell, or just accept Sobey's list? Seems odd that the Crossroads Safeway or Reenders Sobey's wouldn't be on the list, while a Safeway in a neighbourhood underserved by grocers is on there. Good for Sobey's I guess.

[CoryB]

Doing some more thinking about the possible sale/closure of the Main and Luxton Safeway. I know when that neighbourhood faced a similar issue with the local hardware store their formed what became a highly successful coop to take over the store (Pollock Hardware). Successful to the point they are looking to open another store on south Osborune.

This got me wondering, might the Pollock Hardware coop be in a position to help a grocery store coop organizing and take over the Main and Luxton store following a similar model the the hardware store? It could even be marketted towards the members of the existing hardware coop as a starting point. Instead of the residents of that area taking on a woah is me attitude step up to the plate, organize your's and take action.

[CoryB]

Originally Posted by Andy6

Whole Foods has only barely got up to three stores in the entire GTA. It is way out of Winnipeg's price range. Their stores are as different from a Safeway as IKEA is from Brick's Fine Furniture. The market could maybe support one Whole Foods but it's all special brands (almost no national brands or products of any kind -- no Coke, no Pepsi, only super-expensive cereal brands you've never heard of, etc.) Setting all the necessary distribution up to service one store in a budget-conscious market sounds unlikely unless they're changing their whole business model.

I am not disagreeing that Whole Foods seems like a bad fit for the Winnipeg market, however the reality is they have really agressive plans for Canada.

Originally Posted by Financial Post May 22, 2013

U.S. grocer Whole Foods Market Inc. says it could open 40 or more stores and eventually tally $1-billion in annual sales in Canada as part of a wider expansion that continues unabated.

Source

Those 40+ stores would be in addition to the nine that were already open in BC and Ontario. Even given the relatively stronger market for the brand in those regions that level of aggressive expansion strongly suggests they are coming to Winnipeg with the question being when not if.

Which a a heavily entrenched food market in Canada these expansion plans suggest they are looking at acquistions as part of their expansion. There is unlikely to be a better opportunity to get prime locations in Winnipeg that are already setup for grocery operations. Yes, the layout might not fit them perfectly but the cost savings over a new build or conversion from other purpose may make the deal worth while.

While the stores are not perfectly located for their target markets it would be difficult and expensive to land the even more prime locations than these. With an established warehouse to sweeten the deal it seems like now is the time to pounce.

As for Metro, that would seem to be a non-starter. They used to have a large presence in Winnipeg with the Dominion chain. They exited this market for a reason. Further, they seem to be under heavy presure in their existing markets since Sobey's split from their wholesale business.

Save on Foods seemed like a strong contender early on to pickup the scraps of the Safeway sale. The curious choice of stores on the divestment list suggests that another factor may have been at play. For example, why was were the two Lag stores that almost share a parking lot excluded?

As I mentioned earlier, the list of stores that must be divested might not be the whole story as I am sure more stores will be sold or closed once the dust has settled.

[cllew]

These are the stores announced that are being sold to satisfy the Competition Bureau.

There is nothing saying that Sobey's won't be closing/selling more Winnipeg stores in the future for business reasons. Maybe one or two years down the road once the numbers firm up.

Besides one of the Lag stores I could see one of the 3 on Henderson Hwy (Henderson @ Bronx?) going as well. Also one in the Burrows / Keewatin area where they are across the street from each other.

[cllew]

The other question is what happens to the stores that are supplied by the McDonald Consolidated wholesale division of Safeway?

Small chains like the Food Fare and independents like Cantors Foods come to mind. Will they have to look to a different supply source to stay in business if Sobey's decides to close the Safeway distribution center on King Edward.

I know Loblaws has the cash and carry on Ellice @ Century but do they still operate Sunspun Foods which I believe supplied their old Shop Easy franchise chain?

[cslusarc]

The other question is what happens to the stores that are supplied by the McDonald Consolidated wholesale division of Safeway?

Small chains like the Food Fare and independents like Cantors Foods come to mind. Will they have to look to a different supply source to stay in business if Sobey's decides to close the Safeway distribution center on King Edward.

I know Loblaws has the cash and carry on Ellice @ Century but do they still operate Sunspun Foods which I believe supplied their old Shop Easy franchise chain?[/QUOTE]
Regarding Sobeys/Safeway... there are some other nodes around town where there are a Sobeys and Safeway nearby. Why weren't more stores put on the chopping block. Who will be the purchaser of this cast off? Loblaws is likely the only buyer I can think of unless another non-supermarket wants this real estate?

- for Main and Luxton: I'd like to see a full sized Real Canadian Superstore built on the Extra Foods Lot while the Safeway lot could be turned into a giant parking lot (or vice versa).

[bryanscott]

Originally Posted by cslusarc

For Main and Luxton: I'd like to see a full sized Real Canadian Superstore built on the Extra Foods Lot while the Safeway lot could be turned into a giant parking lot (or vice versa).

People seem to forget that there is a street (Luxton Ave) between the Safeway Lot and the Extra Foods lot. It would be a nightmare dealing with a constant stream of shoppers crossing the street. And the street can't be closed off—it's already closed off on one side by the field for Luxton School.

[cheswick]

Originally Posted by bryanscott

People seem to forget that there is a street (Luxton Ave) between the Safeway Lot and the Extra Foods lot. It would be a nightmare dealing with a constant stream of shoppers crossing the street. And the street can't be closed off—it's already closed off on one side by the field for Luxton School.

Yeah I'm sure some people forgot this, but not sure I agree that it can't be closed off. I'm pretty sure the city wouldn't have an issue closing it off if it meant a large grocer occupying the space. It would make for a funny street. Having two seperate gaps in it.

[bryanscott]

Originally Posted by cheswick

Yeah I'm sure some people forgot this, but not sure I agree that it can't be closed off. I'm pretty sure the city wouldn't have an issue closing it off if it meant a large grocer occupying the space. It would make for a funny street. Having two seperate gaps in it.

So should residents of this block just park their cars on another street and walk to their houses?

I don't think we're going to see a whole city block closed off on two sides. Take a look at Google maps. On the east side the block is closed off by the Luxton School field (with egress to a back lane only). No way the west side (Main Street) will be closed of as well.

[cheswick]

Originally Posted by bryanscott

So should residents of this block just park their cars on another street and walk to their houses?

I don't think we're going to see a whole city block closed off on two sides. Take a look at Google maps. On the east side the block is closed off by the Luxton School field (with egress to a back lane only). No way the west side (Main Street) will be closed of as well.

Not sure why closing Luxton in this area would neccesitate people parking on a different street to get to their houses..... There would be an exit to polson and an exit to inskster behind the store in addition to the aformentioned exits on the other end to polson and to the north.

[bryanscott]

Originally Posted by cheswick

Not sure why closing Luxton in this area would neccesitate people parking on a different street to get to their houses..... There would be an exit to polson and an exit to inskster behind the store in addition to the aformentioned exits on the other end to polson and to the north.

Yes, but these are all back lanes—not proper streets. Are there precedents in the city where residential streets are only accessible via back lanes?

I really hope that never happens, as a resident of that part of Luxton Avenue. Nobody would ever be able to find our house!

[TR_Chick]

Originally Posted by cheswick

Not sure why closing Luxton in this area would neccesitate people parking on a different street to get to their houses..... There would be an exit to polson and an exit to inskster behind the store in addition to the aformentioned exits on the other end to polson and to the north.

Agreed. It wouldn't take much to build up one of these streets slightly more and call it a road, plop a sign on it and have "proper" access to Luxton. This really is a non-issue. And in light of now both stores closing, I am sure the residents would appreciate an option to shop at walking distance, even if it means they have to pop down or up a block to get access to Main st.

[bryanscott]

Originally Posted by TR_Chick

Agreed. It wouldn't take much to build up one of these streets slightly more and call it a road, plop a sign on it and have "proper" access to Luxton. This really is a non-issue. And in light of now both stores closing, I am sure the residents would appreciate an option to shop at walking distance, even if it means they have to pop down or up a block to get access to Main st.

Yes, walkable access to at least one grocery store is crucial. But I'm really not even sure why either of the existing stores/lots can't cut it on their own as a future grocery location (without combining the lots and creating a mega-lot). Why is the giant supermarket the only viable option? Really, how many varieties of toothpaste do people need to choose from? The Main Street Safeway is small (by today's standards), but it's big enough, and contains an amount of variety that most reasonable people need (ie, 50 toothpaste options as opposed to 200). The only rationale I can think of to combine the lots is to provide for a giant parking lot, to which I say no thanks—since we're all walking anyways.

The neighborhood would be better off with one great medium sized store (which after living there for several years I would suggest is all it needs) rather than a great-big shitty suburban megastore with a giant complementary parking lot. Better off fixing up one of the stores and filling the other lot with infill housing.

[CoryB]

Originally Posted by bryanscott

The neighborhood would be better off with one great medium sized store (which after living there for several years I would suggest is all it needs) rather than a great-big shitty suburban megastore with a giant complementary parking lot. Better off fixing up one of the stores and fill the other lot with infill housing.

The reality that the Main at Luxton store seems to be facing is that both existing stores are too small to provide the profit margin that is needed. The answer would seem to be building a bigger store that would take over a significant portion on one (or both) lots meaning that parking for the new, larger store would span both lots. The advantage of a larger store that is not a Sobeys/Safeway is that there is potentinal to pull in commuter traffic on their way home.

The other possibility would seem to be for the Pollock Hardware coop to either take over the Safeway or to ehlp facilitate a whole independent coop to run the grocery store. The Pollock Hardware model has demostrated that the community is willing to support that model in a smaller foot print than might has worked for other companies.

I feel there are opportunties for Main and Luxton if people are willing to look for them and work towards a solution that involves some compromises from the current status.

[rypinion]

Originally Posted by bryanscott

Better off fixing up one of the stores and fill the other lot with infill housing.

That's always been my vision whenever I bus or drive past there. Perhaps some higher density housing.

[h0twired]

Originally Posted by bryanscott

Yes, but these are all back lanes—not proper streets. Are there precedents in the city where residential streets are only accessible via back lanes?

I really hope that never happens, as a resident of that part of Luxton Avenue. Nobody would ever be able to find our house!

I would be all for that.

Close off the street at both ends and turn the street into a green space.

[esquire]

Originally Posted by CoryB

The reality that the Main at Luxton store seems to be facing is that both existing stores are too small to provide the profit margin that is needed. The answer would seem to be building a bigger store that would take over a significant portion on one (or both) lots meaning that parking for the new, larger store would span both lots. The advantage of a larger store that is not a Sobeys/Safeway is that there is potentinal to pull in commuter traffic on their way home.

Is it really too small? My local Safeway is the one on South Osborne, and it's tiny... it has to be one of the smallest Safeways in the chain. Yet it manages to make a go of it, even with larger alternatives nearby.

The Extra Foods and the Safeway are reasonably large... the Extra Foods looks like it's a bit bigger and has a bit more parking, but certainly both are comparable to other supermarkets in the city.

[1ajs]

Originally Posted by cllew

The other question is what happens to the stores that are supplied by the McDonald Consolidated wholesale division of Safeway?

Small chains like the Food Fare and independents like Cantors Foods come to mind. Will they have to look to a different supply source to stay in business if Sobey's decides to close the Safeway distribution center on King Edward.

I know Loblaws has the cash and carry on Ellice @ Century but do they still operate Sunspun Foods which I believe supplied their old Shop Easy franchise chain?

sobees has a cash and cary on arlington and duffern

[1ajs]

as for luxton u just have the street become a 2 behind the store