Co-op grocery pushed out of Main Street location - Action News
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Manitoba

Co-op grocery pushed out of Main Street location

The Co-op grocery store on Main Street is closing its doors but not by choice.

Grocery store moved in just 2 years ago but building owner wouldn't renew lease

The Co-op store on Main Street, between Polson and Luxton avenues, will shut its doors this summer, just two years after it took over the former Safeway. (Jeff Stapleton/CBC)

The Co-op grocery store on Main Street is closing its doors but not by choice.

General manager DougWiebe said thebrokerage company that owns the building,between Polson and Luxton avenues,has refused to renew the lease.

The company told Wiebeithas lined up a new tenant, but didn't saywho it is or when they're moving in.

The food section of the Co-opwillclose June18 while the pharmacy will close June 30. The pharmacy is staying in the immediate area, however,moving just across Polson to a former Scotiabank, where it will reopen July 2.

There was nothing available in the areathat would have allowed the grocery store to relocate and keep serving the neighbourhood, Wiebe said.

"We've got until June 30to vacate and in that short time frame, we just don't have time to secure another property for a food store," he said.

Co-op took over the formerSafewaylocation two years ago afterSobey'stook over theSafewaychainand thefederal Competition Bureau madeitclosesome stores.

At that time, there were two years left on the lease of the Main Street building andWiebesaid Co-op just assumed it would be renewed. In fact, the store was set for some bigrenovations.

"A major expenditure of close to half a million dollars to upgrade that facility as well just to spruce it up," said Wiebe.

"So our plans were all moving forward to upgrade and enhance that facility, not to close it down. That wasn't in our cards."

He said Co-op also tried to buy the building outright from the brokerage company but was turned down.

The store faced new competitionin the last year afterLoblawsopened a No Frills discount grocery store just across Luxton, but Wiebe said that didn't have a huge impacton Co-op's business.

"No Frills definitely impacted our volume as we anticipated it would, but you know, we were holding our own. Our plans were to continue in that business for a longer term," he said.

Most of the grocery store'semployees will be moved to other Co-op locations in the city,Wiebesaid.

Some may not be mobile, though, so they will be looking for work, he said, while otherpositions will be phased out and those employeesare being offered severance packages.