North of 53 Consumers Co-op announced Monday it will open a spacious new store at the former armoury property, marking one of the most significant commercial developments in Flin Flon history.
With a projected price tag of $16 million to $17 million, the store is slated to open in late 2017 or early 2018, replacing the Co-op’s long-time home on Main Street.
“I think what you’re going to end up seeing at the end of the day is something that was needed in Flin Flon a long time ago,” said general manager Tom Therien.
“Our current food location is not adequate to meet the needs of our current clientele. We’ve just grown out of this building, out of our parking lot, and we need to expand. We found a property to do it on and we need to move forward.”
Dave Kendall, chairman of the Co-op board of directors, said the board decided to proceed with the project last Saturday, Aug. 27, about two years after first discussing the concept.
The decision came two days after Federated Cooperatives Ltd. (FCL), the umbrella organization for Co-ops in Western Canada, confirmed it would provide about $3.5 million in funding for the project.
The Co-op itself has saved up $4 million for construction, and will receive a 10-year, low-interest loan from FCL to cover the remainder.
“I know it’s a major amount of money, but we certainly think, the board, that we’re making the right decision,” said Kendall. “We’re really looking forward to what it’s going to look like, and we think it will have a very positive impact on our community.”
An FCL-sponsored feasibility study made a strong case for the new store. Kendall said the projected return on investment, better than eight per cent, is tops among new Co-op stores in Western Canada.
Sales at the current store were another encouraging factor. Grocery and gasoline profits (known as savings in the Co-op system) totalled $1.64 million in 2015. The previous year, 2014, was the Co-op’s second-most profitable year ever.
“We have sales right now that would support a much larger store,” said Kendall.
More options
With between 37,000 and 39,000 sq ft, the new store will offer about 50 per cent more space than the current food floor. The building will be similar to a new Co-op in Saskatoon, only smaller, and will be slightly larger than new Co-ops that have or will go up in the Manitoba communities of Virden and Roblin.
Therien said the added space will allow for a broader selection of groceries, including ethnic, gluten-free and organic options that are becoming increasingly popular.
“We carry small product lines of all of [that], but we aren’t capable of carrying full product lines,” he said. “Well, now we will be. So we’ll be providing more for our younger people, [who] are looking for different products. They have a totally different mindset when it comes to buying than their parents did.”
Another change will see the bakery and deli split into separate departments, and the addition of a sushi line through a Japanese company. The store will not expand into retail items such as clothing.
Therien said there are no plans for a gas station, either, but that door will be kept open for future consideration. An in-store pharmacy was also discussed but ultimately declined.
In terms of location, Kendall favours the former armoury site, situated along the major artery of Highway 10A, because of the space afforded for both the store and the parking lot.
“I think the number one thing that’s going to appeal to me is the ability to have adequate parking,” he said. “I think it’s very fair to say that if there is a sore point for most of our members, it’s coming in and not being able to find a parking spot, and this certainly does provide that.”
Kendall said financial projections for the store are closer to $16 million on the low end than $17 million on the high end, though there is a standard contingency built into the estimate.
The amount includes the cost of new equipment, such as coolers, that would be required whether the new building proceeded or not, Kendall said.
Therien said the current store is dated and needs new equipment and other upgrades totalling about $8 million. Since those upgrades would involve an existing building, FCL would not contribute any funding, and the store would need to be closed for an undetermined period of time.
Kendall said this was another factor considered: the Co-op gains a new store by spending another
$5 million of its own money, give or take, beyond what is currently required for upgrades.
While situated in a high-traffic area, not far from Walmart and Canadian Tire, the armoury site does not come ready-made for the new Co-op.
Demolition of the armoury building, once home to Flin Flon’s now-defunct military reserve unit, is to begin in September. Blasting of rock along the west side of the property, and behind the fence line, is expected to be finished before Christmas.
The store itself will be built behind where Habitat for Humanity’s ReStore, a brown storage building, is now located at the rear of the property. Land now in front of ReStore will be for customer parking.
Resistance
The concept of a new Co-op store has met some resistance in the community. Detractors believe the board should take a wait-and-see approach given the planned closure of Flin Flon’s 777 mine around 2020; others favour the downtown location and point to the current store’s financial success as a reason to maintain the status quo.
Ken Mansell, who favours the current building, has said a petition he circulated last year accumulated 460 signatures of Co-op members opposed to the new location. Kendall later indicated the number was lower than that, as the petition featured the names of some non-members and individuals who signed more than once.
Kendall does not dismiss the opposition, however. He said he can understand where opponents are coming from, but he pointed out that key to the decision are the many Co-op members who live outside of Flin Flon – as well as the importance of a good shopping experience for all customers.
Added Therien: “Our whole region is increasing in terms of population and need, specifically to the west of us.” That would include the growing First Nations communities of Pelican Narrows, Sandy Bay and Deschambault Lake.
Another concern about the new store is reduced accessibility for customers, particularly seniors, who live in the uptown area within walking distance of the existing Co-op.
Kendall said he understands that some people will be unhappy with a location outside the uptown area, but he added the new store will be along the bus route and will continue to offer home deliveries.
The current Co-op will not be abandoned, either. Store administration will remain in the building, and the store has been speaking with potential tenants to rent the food floor, just as the lower level of the building is partitioned off and leased by several different outlets.
FCL “put the bug in our ear” for a new store after the possibility of a Co-op in Snow Lake was explored, Therien said. That store was not deemed feasible, but FCL then brought up the concept of a new Flin Flon store.
