Calgary’s Northwest to Lose Two Co-op Grocery Stores in March

Calgary’s Northwest will see the closure of two Co-op grocery stores in March. This decision, described as difficult by the retailer, results from changing economic and market conditions. The affected locations, in Sage Hill and Hamptons, are set to close on March 28.

Details of Store Closures

The Co-op grocery stores impacted by the closures are:

• Sage Hill: 111 Sage Valley Common N.W. (Opened in 2021)
• Hamptons: 1000 Hamptons Dr. N.W.

In addition to these grocery stores, the liquor and cannabis outlets in Hamptons will also shut their doors. Calgary Co-op’s spokesperson emphasized the need to adapt to meet customer needs in more sustainable locations.

Future Plans for Calgary Co-op

The closures allow Calgary Co-op to focus on other stores, including the North Hill location expected to open soon and a future location in Marda Loop planned for next year. As part of the company’s restructuring, they aim to maintain relevance and profitability in a competitive market.

Customer Reactions

Market Dynamics and Competition

Analysts attribute some of the struggles to intense competition from nearby retailers like Costco and Sobeys. Bruce Winder, a retail analyst, highlighted how the grocery sector has narrow profit margins that are growing tighter. Further, he pointed out that discount grocery brands are taking a larger share of the market amidst rising living costs in Canada.

Financial Outlook for Calgary Co-op

Calgary Co-op, one of North America’s largest retail cooperatives with over 400,000 members, is facing financial challenges. Recent reports show a projected loss of $10 million for 2024, a stark contrast to previous earnings of $16.7 million in 2023 and $38.7 million in 2022. Additionally, patronage payments to members decreased from $26 million in 2022 to $17 million in the latest report.

Broader Implications

Marc-André Pigeon, a director at the Canadian Centre for the Study of Co-operatives, remarked on the troubling financial trends facing Calgary Co-op. The closures of the two grocery stores in Calgary’s Northwest reflect broader challenges in the retail grocery sector. These challenges include navigating competitive pressures and shifting consumer preferences.

Calgary Co-op is engaging with team members and the union to assist the staff affected by the impending store closures. As the company seeks to adapt, the upcoming expansions and service adjustments are critical to its strategy for stability and growth.