How this independent grocer is flourishing — and competing against the big players | 24CA News

A Nova Scotia impartial grocer well-known for its rock-bottom costs is able to put shovels within the floor as a part of an growth to double its dimension.

For Tamara Selig, who co-owns Gateway Meat Market together with her husband, Jamey, the expansion is an “emergency” in mild of meals insecurity within the area.

They’ve submitted a rezoning utility to construct a brand new storefront on their Main Street property in Dartmouth and are ready to listen to again.

The couple opened the shop 15 years in the past as a meat store, however it has advanced to incorporate extra produce and grocery gadgets. She stated it’s develop into more and more evident over the previous yr that there’s a requirement for inexpensive meals, and it’s a void they attempt to fill.

“We definitely are trying to bring in more items that we weren’t carrying before,” she stated.

“With such food insecurity issues, people are always looking to find new ways to save money and are willing to drive longer to get to us, which then obviously makes our pool of customers even bigger.”

To maintain costs low, Selig stated the business maintains low overhead prices. It has few staff, no head workplace, no printed flyers, and Selig herself runs the shop’s in style Facebook web page.

She additionally credit an in depth relationship with native suppliers and “not your usual chain of distribution” for the infamous offers.

“My husband does all the buying and negotiates all the pricing with all of our suppliers. So it’s definitely a very efficient way to run a business without having a whole slew of people that have to approve something,” she stated.

“Right now in the store, we have bacon for $1.97 because we got a really good bulk deal on it and we didn’t have to do anything to offer it except getting it shipped in.”

In latest months, the nation’s bigger grocers have been blamed for meals inflation. In response, firms like Loblaw Companies Ltd. defended themselves by putting the blame on suppliers and elevated prices, comparable to fuel.

Selig stated Gateway just isn’t immune from these elevated prices, however they’ve made the corporate “more aggressive and more creative” to find methods to save cash.

“Whereas I think the big chain store, they just kind of follow their algorithm and their prices go up with raw goods, where we just kind of take it as a challenge and try to find new ways of doing things that are more efficient or better,” she stated.

“Basically, (we) just get creative with what we can do to keep prices down because making groceries unaffordable anymore is not an option.”

Ed McHugh, who teaches business on the Nova Scotia Community College, stated impartial grocers like Gateway have a significant function in Canada.

“The price of groceries is no secret to anyone. Inflation’s high. Groceries are much higher,” he stated.

“These stores have played a huge role for those people who are struggling with their weekly bills, including groceries. Huge.”

More competitors wanted

Last month, the Competition Bureau launched a report analyzing focus within the grocery sector.

Most Canadians purchase meals in shops owned by a handful of grocery giants, with Canada’s three largest grocers — Loblaws, Sobeys and Metro — collectively reporting greater than $100 billion in gross sales and $3.6 billion in income final yr.

The answer, the report discovered, was extra competitors.

“The entry of new competitors and growth of existing independents would increase competition, empower consumers, and drive businesses to lower prices, improve product quality, and innovate,” the research stated.

But the research additionally detailed the struggles and downsides confronted by “new players and regional independents” in Canada’s grocery scene.

In talking with impartial grocers, the researchers discovered that many had to purchase their inventory from their opponents — comparable to Loblaws and Sobeys — as a result of they weren’t large enough to have their very own warehouses or purchase straight from suppliers. As properly, bigger grocers are paid by suppliers to have their merchandise on cabinets.

“Independent stores generally aren’t, and that can put them at a disadvantage,” the research famous.

As properly, impartial grocers spoke about their issues that bigger chains had been shopping for up smaller ones like theirs and “there wouldn’t be a future for small stores.”

It’s a situation McHugh acknowledges is going on.

He stated for such a small nation, it’s “amazing” to him that there are solely three main gamers within the grocery trade — the results of fast consolidation.

“You know, Sobeys started in Stellarton, (N.S.), right? And grew to be a regional company. And then all of a sudden, in a very quick period of time, they’re a national strong player through acquisitions,” he stated.

McHugh stated the giants are “formidable” and it’s not simple for independents to develop or flourish.

“What you’re going to see is niche players, small independents,” he stated.

“For example, in this market, Atlanta, Canada, we had Pete’s Frootique, right? Nice little independent grocery store, good profit, I’m guessing. … What happens to Pete’s? Sobeys buys it. So almost anytime a small niche player comes along and becomes successful, one of the bigger players buys them.”

The outcome, McHugh stated, is huge firms that “keep getting larger and larger.”

Gateway trying to broaden

As for Gateway, Selig stated it needs to stay a small family-run business and it’s not trying to open a second location.

It does, nonetheless, want extra space.

The retailer is at the moment 2,200 sq. toes, and the Seligs hope to greater than double that house. They not too long ago submitted a rezoning utility to the municipality for a brand new constructing on the prevailing property and the property subsequent door they’ve bought.

“We’re trying to make it at least 5,000 square feet, which will make it a lot,” Selig stated.

“Now that we’ve put everything through for all the rezoning, I’m hoping that they can understand that this is more of an emergency issue situation and help us expand quicker to meet the demand of families that really are having a hard time affording groceries elsewhere.”