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New Co-op store details revealed at meeting

North of 53 Consumers Co-op is coming off another highly profitable year, but it was the store’s future that dominated the discussion at its latest annual meeting.
Co-op board president Dave Kendall fields questions as Tom Therien looks on.
Co-op board president Dave Kendall fields questions at the store's annual general meeting as general manager Tom Therien looks on. - PHOTO BY JONATHON NAYLOR

North of 53 Consumers Co-op is coming off another highly profitable year, but it was the store’s future that dominated the discussion at its latest annual meeting.

With the new Co-op store opening around the spring of 2018, officials fielded questions on topics ranging from First Nations market share to traffic concerns.

“I really do think our future is very bright,” general manager Tom Therien told members at the store’s annual general meeting, held Wednesday, April 19 at St. Ann’s Hall.

“We’re going to offer you stuff that we’ve never been able to offer before. We’re going to offer it in ways that we’ve never been able to offer it before.”

On the wall behind Therien hung an artist’s conception of the exterior of the new Co-op. At nearly 40,000 square feet, the store will offer about 70 per cent more space than the current food floor.

Officials have identified growing First Nations communities in the region as a rationale for the project. Residents of those communities regularly travel to Flin Flon to shop for groceries and other goods.

Asked what percentage of First Nations customers the Co-op hopes to attract, Therien provided no specific figure but said Flin Flon, Creighton and Denare Beach cannot be viewed in isolation.

The current store attracts a “fairly decent” share of the First Nations market and is hoping to draw a higher share, Therien told an audience of 34 members.

Customers will enter and exit the new Co-op property via two sloped ramps. There had been talk of making the store property level with Highway 10A, but Co-op president Dave Kendall said that could have cost another $1 million or more.

Co-op member Gail McKenzie voiced concerns about the slopes becoming slippery in the winter, but Kendall assured her, “We’re told it’s going to be fine.”

The new store will not include a turning lane at this stage, Therien said in response to another question.

Kendall said the new store will feature a small lunch and coffee area, likely with seating for up to 16 people.

Co-op member Frank Gira asked whether coffee drinkers who “sit and waste time” might end up taking seats away from customers who need them. He said this previously occurred at the current store.

Therien said the people who were having coffee at the current store lived downtown. He did not think they would walk to the new store just to have coffee, but “we’ll have to police it and see where it goes.”

Lunch areas have been very successful at other Co-ops, he added.

One potential source of lunch customers will be students from nearby Hapnot Collegiate and Many Faces Education Centre. Members heard that a walkway will stretch between the store property and the schools.

Therien conveyed optimism over the new store throughout the meeting, including when he was asked about the hypothetical scenario of Walmart seriously expanding its grocery selection.

He said he does not believe such a move would benefit Walmart, but added it is possible. Either way, he reiterated the Co-op believes it is making the right choice and will survive.

Asked whether the Co-op might open on holidays or expand Sunday hours to match those of Walmart, Therien said no consideration is being given to that idea.

He said the Co-op takes pride in letting employees spend holidays and Sunday mornings with their families. He said it’s possible the store loses sales as a result, but noted Sunday is already one of its busiest days.

Therien said nothing is written in stone in terms of operating hours and the store would “make adjustments” if needed.

Prior to deciding on the new building, Co-op officials considered the possibility of buying the vacant former Extra Foods building at the Flintoba Shopping Centre.

Asked about the status of the Extra Foods building today, Therien replied, “Well, let’s put it to you this way. If we had happened to have got the property, that building would have come down.”

The Co-op plans to rent out its current food floor after moving to the new building. Kendall said parties are interested in the space, but he was not at liberty to identify them.

Kendall said one party is perhaps considering the entire upper level of the building, while a couple more are looking at renting portions of the space.

The Co-op plans to keep its administration offices in the current building, but if a party is interested in renting that space as well, the offices may move.

While Co-op officials consider the current parking lot to be too small, Kendall said other businesses would welcome a lot of its size.

“Other people look and say, ‘You know what, this is probably the most parking there is in the uptown area,’” he said.

Kendall said the new building, projected to cost $16 million to $17 million, was at last report “maybe a little under budget.”

 

Profits and an election

North of 53 Consumers Co-op enjoyed its second-most profitable year in 2016.

Documents released at the store’s annual meeting show profits – or net savings, as they are called the cooperative system – reached $1.89 million last year. This amount will be allocated to the membership.

The Co-op store generated 70 per cent of those sales, with the remainder coming from the petroleum division.

Last year’s profits marked an increase of $256,235 over 2015. 2016 was also the Co-op’s most successful year to date other than 2013, when profits hit $2.12 million.

Meanwhile, the Co-op will hold an election to fill two spots on the board of directors.

Erhart Dzubiak and Delwyn Ward are both seeking re-election. They face three challengers in Donna Champagne, John Moore and Richard Dansereau.

Advance voting will take place Wednesday, May 3. Regular voting will be Friday, May 12.

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