General Retail News

[acottawa]

Originally Posted by JHikka

Wouldn't this sort of US expansion go against the entirety of the article provided earlier on this page? It looks like they have no issue expanding and maintaining locations in the NA market.

Neither did target.

[acottawa]

I just think Canada is a bridge too far for anything but niche foreign supermarkets. It requires competing with a triopoly with massive infrastructure, metric, French, cartels (dairy, poultry, etc), very low population densities, high labour costs and high real estate prices.

[kwoldtimer]

Originally Posted by acottawa

I just think Canada is a bridge too far for anything but niche foreign supermarkets. It requires competing with a triopoly with massive infrastructure, metric, French, cartels (dairy, poultry, etc), very low population densities, high labour costs and high real estate prices.

Perhaps they could get a foothold if, for example, they could buy Food Basics from Metro, but it's hard to see them starting up from scratch.

[Harley613]

Originally Posted by acottawa

I just think Canada is a bridge too far for anything but niche foreign supermarkets. It requires competing with a triopoly with massive infrastructure, metric, French, cartels (dairy, poultry, etc), very low population densities, high labour costs and high real estate prices.

Where are these 'Very Low Population Densities'? Canada's major markets are dense as hell. Quebec-City Windsor Corridor, Calgary-Edmonton, Vancouver/Interior...it's not like a new player would be trying to serve Iqaluit and Kapuskasing.

[JHikka]

Originally Posted by acottawa

Neither did target.

It's been well-documented why Target failed in Canada. The list of American retailers which have entered (and stayed) in Canada is quite lengthy...

Originally Posted by acottawa

I just think Canada is a bridge too far for anything but niche foreign supermarkets. It requires competing with a triopoly with massive infrastructure, metric, French, cartels (dairy, poultry, etc), very low population densities, high labour costs and high real estate prices.

How is Whole Foods doing?

I'm not trying to play devil's advocate - i'm genuinely curious. That's a niche grocery store that's entered the market and seems to have stuck.

[Harley613]

I'm so tired of hearing the excuse that Canada has low population densities and that's why we can't get affordable cell phone service and attract foreign business. The vast majority of Canada's population, around 30 million of us, exist in three little spots that all put together are not quite as large as the United Kingdom.

[YOWetal]

Originally Posted by JHikka

It's been well-documented why Target failed in Canada. The list of American retailers which have entered (and stayed) in Canada is quite lengthy...



How is Whole Foods doing?

I'm not trying to play devil's advocate - i'm genuinely curious. That's a niche grocery store that's entered the market and seems to have stuck.

Amazon bought them so they aren't really trying to make money at this point.

The European chains that actually do international expansion seem to be more interesting competittiios. Tesco, Carrefour, Auchan. French and Metric obviously not a problem. I guess they will be surprised we still price things in pounds as anyone new to Canada is.

[acottawa]

Originally Posted by JHikka

How is Whole Foods doing?

I'm not trying to play devil's advocate - i'm genuinely curious. That's a niche grocery store that's entered the market and seems to have stuck.

They don’t seem to have expanded beyond their initial group of stores, so they are presumably staying in the niche role. I would speculate it is easier for a high price store to do that than a discount store.

[acottawa]

Originally Posted by Harley613

Where are these 'Very Low Population Densities'? Canada's major markets are dense as hell. Quebec-City Windsor Corridor, Calgary-Edmonton, Vancouver/Interior...it's not like a new player would be trying to serve Iqaluit and Kapuskasing.

Those 3 areas are not anywhere near each other. In England one warehouse or distribution centre can cover 55 million people. The Windsor Quebec corridor is at best 18 million. A warehouse in Alberta might serve 4 million. A warehouse in the lower mainland about the same.

Canada is a Romania and two New Zealands, it is not 3 UKs.

[acottawa]

Originally Posted by JHikka

The list of American retailers which have entered (and stayed) in Canada is quite lengthy...

In terms of stores with grocery store level of logistics it is a pretty short list. Home Depot, Costco, Walmart. All arrived in the 90s, all bought an existing Canadian business.

There are no foreign grocery stores of any size, no foreign drug stores, only one foreign discount store, no foreign whatever Crappy Tire is.

[waterloowarrior]

Rexall and Uniprix are now American-owned (McKesson), the same company owns the brand/distribution behind IDA, Remedy's and a few other independent pharmacy groups.

[OTSkyline]

Is the Metro supposed to reopen at the base of Claridge Royale on Rideau once it is ready? If so, it seems like the east side of downtown is relatively well-served (Loblaws & Metro on Rideau, Farm Boy on Metcalfe, Independent on Bank) while the west side of downtown (west of Bank St, east of Island Park) has no major grocery store.

Seems weird as other cities like Montreal, Toronto or event Calgary/Edmonton have a few major grocery chains located downtown (often times at the base of major condo projects). Seems perfect for Moon (or Lebreton, although that is still years from now).

Weird that Ottawa only has 2 No Frills at either end of the city (Stittsville and Orleans), although I don't see discount grocers opening up downtown given the high rent prices associated with location.. Could be well suited for a full-service Sobey's though.

[J.OT13]

As far as I know, it's still the plan to re-open Metro at Claridge Moon.

[acottawa]

Originally Posted by OTSkyline

Is the Metro supposed to reopen at the base of Claridge Royale on Rideau once it is ready? If so, it seems like the east side of downtown is relatively well-served (Loblaws & Metro on Rideau, Farm Boy on Metcalfe, Independent on Bank) while the west side of downtown (west of Bank St, east of Island Park) has no major grocery store.

I have never understood the East-West Grocery divide in Central Ottawa.

[BlackRedGold]

Originally Posted by acottawa

In terms of stores with grocery store level of logistics it is a pretty short list. Home Depot, Costco, Walmart. All arrived in the 90s, all bought an existing Canadian business.

There are no foreign grocery stores of any size, no foreign drug stores, only one foreign discount store, no foreign whatever Crappy Tire is.

You're forgetting Whole Foods.

And Costco arrived in the 80s and didn't buy an existing business.

[SidetrackedSue]

Originally Posted by OTSkyline

Is the Metro supposed to reopen at the base of Claridge Royale on Rideau once it is ready? If so, it seems like the east side of downtown is relatively well-served (Loblaws & Metro on Rideau, Farm Boy on Metcalfe, Independent on Bank) while the west side of downtown (west of Bank St, east of Island Park) has no major grocery store.

Slight correction, Metro is east of Island Park on Wellington. But that's the only one and I don't consider it part of Downtown West, just Wellington West and East Westboro.

When downsizing, we looked to rent on Laurier. Lack of grocery store is another reason I'm relieved we didn't. And why I never considered Little Italy.

I suppose I could learn to shop in little shops but I'm frugal and old and one-stop shopping where I can get everything under one roof at the best prices offered in town (Superstore with price matching) suits me very well and it is an easy walk. Now that the pandemic restrictions are over we are slowly relearning shopping multiple times a week in order to shop on foot rather than by car.

[YOWflier]

Costco was initially Price Club. They were competitors that merged in the 90s and retained the Costco brand.

[BlackRedGold]

Originally Posted by YOWflier

Costco was initially Price Club. They were competitors that merged in the 90s and retained the Costco brand.

Both were American chains that expanded into Canada.

[acottawa]

Originally Posted by BlackRedGold

You're forgetting Whole Foods.

And Costco arrived in the 80s and didn't buy an existing business.

Whole Foods has 9 stores in Canada, which I don't think meets the "any size" threshold.

You're right about Costco, I thought Price Club was Canadian.

[Acajack]

Originally Posted by acottawa

I have never understood the East-West Grocery divide in Central Ottawa.

There is also the Loblaws on Isabella.