|
|
Temporary setback
News that Extra Foods is shelving its new store in High Prairie is a harsh body blow to the community.
Over the years, many investors have tried many times to locate all of the chain stores in High Prairie. Repeatedly, they were told High Prairie is just too small.
We think they are making a mistake. High Prairie’s population of about 3,000 doesn’t reflect all the surrounding villages and, of course, the thousands of people on our First Nations and Metis Settlements.
That’s why there is no Boston Pizza, Tim Hortons, Wendy’s or McDonald’s in High Prairie. Unfortunately, for our region, High Prairie’s population is about the only thing the chains look at. As just about every business person in High Prairie will tell you, High Prairie is a good place to be in business. For a ‘little’ town, there’s ample work for any reasonably managed, decent store or service.
So, what’s the problem with Extra Foods?
Well, it’s not so much a problem with High Prairie. It’s a problem with the entire Loblaws chain, of which Extra Foods is one part.
Loblaws is a $12 billion dollar company in assets with $32 billion in sales. It is in the process of restructuring. Loblaws has had a few rough quarters the past year, and may be reporting another bad quarter at the end of this month. Share prices are tumbling. The company is by no means in big trouble. It takes a lot of killing to kill a $12 billion dollar company.
But, as part of the restructuring, Loblaws closed 70 stores in the past year. Fifty of those were in the last six months.
In that same time, they opened only six new stores. The closures are part of management’s plans to restore the company to strong profitability. Included in those plans is a rebuilding of what the company calls its Western supply and distribution system.
What it all adds up to is, adding a new store right now, anywhere, to a system that is broken just isn’t going to happen. Give the company time, perhaps another year, and they will be back. They own the land, and as said above, High Prairie is a good place to be in business.
Meanwhile, the news is a setback to the owners of the rest of the property, H.P. Farm Supply. The Extra Foods development was planned to kickstart a new commercial district on the west side of town. As it happens, big box developments tend to attract more big boxes and Extra Foods would have been a great anchor for more stores there.
Maybe one of these days, that will include Boston Pizza or McDonald’s.
Unfortunately, that’s tomorrow.
Today, there’s just no getting around it. The news hurts.
- J.K.B
Copyright © 1999-2005 South Peace News. All Rights Reserved.
No part may be reproduced without written permission.
View our Privacy Statement.
Send website suggestions to the Webmaster
|
|
