Winnipeg Free Press

Winnipeg Free Press (Newspaper) - July 11, 2024, Winnipeg, Manitoba H%e PressBUSINESS B5 THURSDAY JULY 11, 2024 • BUSINESS@FREEPRESS.MB.CA • WINNIPEGFREEPRESS.COM Dakota Family Foods grocery store to shutter under operating costs pressure'It was just time to move on' GABRIELLE PICHÉ After nearly two decades in business, Dakota Family Foods is winding down operations. The south Winnipeg grocery store announced its impending closure Wednesday morning. “This decision was not made lightly,” the grocer, located at 1099 St. Mary’s Rd., said in a statement on social media. It was roughly seven months in the making, according to owner Scott Clement. Dakota Family Foods’ 10-year lease is up in November. Clement said he couldn’t come to an agreement on a new lease with the landlord. The decision was backed by other “small-business” problems, Clement continued, including labour and operating cost increases, construction hindering customer traffic and shoplifting. “I think the grocery industry is probably the most challenging out there,” Clement remarked during an interview. “It was just time to move on.” The roughly 20,000-square-foot store will close by November. It may shutter earlier, depending on staff and inventory, ownership said. Clement expressed sadness at the looming layoff of 60-odd staff. Dakota Family Foods has had “amazing” employees, he said. Increased minimum wage — and having to pay higher-wage staff more as a result — was the largest nail in the coffin, Clement said. Manitoba’s legislated minimum wage rose to $15.30 per hour in October, a total bump of $3.35 per hour compared to September 2022. Food inflation costs were largely passed to customers, but higher operating expenses (such as equipment) dampened store revenue, Clement stated. Dakota Family Foods likely experienced five to 10 shoplifting incidents daily; theft continues to be “the toughest part of our industry,” Clement relayed. Meanwhile, customer traffic decreased after an eight-month construction project near the store in 2022 and it hasn’t fully returned, he continued. “It’s the toughest decision of my life,” Clement said of closing Dakota Family Foods. He plans to take time away from the industry post-closure. His family will continue to operate Portage Family Foods on Portage Avenue. Grocery store margins can be “exceptionally thin” — around one to three per cent in most areas, said John Graham, Retail Council of Canada’s director of government relations for the Prairies. Independent stores are both managing escalating labour costs and fluctuating global pricing pressures, he explained. Customers are also dealing with higher BUTH BONNEVILLE / FREE PRESS Scott Clement, owner of Dakota Family Foods at 1099 St Mary's Rd., says the south Winnipeg grocery location will close by November. The decision not to renew its expiring lease comes amid years of 'small-business' problems, including increased labour and operating costs, theft and nearby construction hampering customer traffic, Clement says. 'The grocery sector is exceptionally competitive ^ it's not easy for any store to compete. Ultimately, it'll be up to Manitobans to continue to support small, independent stores and help them to be able to continue to operate' — John Graham, Retail Council of Canada's director of government relations for the Prairies prices — and they’re visiting discount retailers more often, he added. Dollar stores, too, have gained popularity as food sources. Almost two-thirds of Canadians have changed their primary grocery store in the past year for lower prices, a survey by Dalhousie University’s Agri-Food Analytics Lab found in February. “The grocery sector is exceptionally competitive _ it’s not easy for any store to compete,” Graham said. “Ultimately, it’ll be up to Manitobans to continue to support small, independent stores and help them to be able to continue to operate.” The Dakota Family Foods site was previously an IGA grocery location. The locally owned store has “amazing customers,” Clement said. Some patrons flocked to the grocer upon hearing its days were numbered. On Wednesday, Alice Edwardsen filled her cart with noodles and discounted soups. “These shelves are going to be empty sooner than later,” she said. “It’s very sad to see this _ coming to an end.” Edwardsen has visited the location since its IGA days; she’s gotten to know Dakota Family Foods staff, including Clement. She once ran into the store owner in Las Vegas — at the time, he was a familiar face she’d never talked to, she recalled. The local and personal element drew her to Dakota weekly, Edwardsen said. Meanwhile, Carole Christle and her daughter Stephanie were picking up pastries to freeze. Stephanie, 16, grew up with a weekly sweet treat from Dakota Family Foods, courtesy of her grandma. “It brings back memories,” said Carole Christle, holding a boxed cheesecake slice. “Good memories.” Customers regularly travelled between Dakota Family Foods and nearby Gimli Fish Market, said Charlene Bell, a fish market employee. “That is going to affect us a little bit,” she predicted of the impending closure, adding it is sad news. Family Foods locations are independently owned and operated, the brand’s website promotes. It boasts upwards of 70 locations across Western Canada. Dakota Family Foods will discount its inventory within the next few weeks, according to an online statement. gabrielle.piche@winnipegfreepress.comDaniel McIntyre shines on national liveability real estate listGABRIELLE PICHÉ WINNIPEG’S Daniel McIntyre neighbourhood has been named one of Canada’s most liveable places by a national real estate titan. On Wednesday, Re/Max Canada released its 2024 Liveability Report. The West End neighbourhood made its top 10 list, alongside areas such as Sandy Hill in Ottawa and Westmount in Saskatoon. And many Winnipeg regions — 14 others — joined Daniel McIntyre by being highlighted in more specific Re/ Max liveability lists. Winnipeg tied Edmonton with four “best” neighbourhoods for first-time homebuyers. “It’s very exciting,” said Coun. Cindy Gilroy (Daniel McIntyre). “This is now showing, ‘Hey, this is a destination _ this is a place that people can call home that is affordable.’” Re/Max surveyed Canadians about the qualities they seek in a neighbourhood via Leger, a Canadian market research agency. Re/Max also partnered with Local Logic, a Montreal-based data analytics company, to find communities hosting reportedly desired qualities. However, the search did not account for crime; that data wasn’t available, according to Re/Max. Liveability factors considered include affordability, commute times and access to transit and green spaces. In Winnipeg, homebuyers are most likely looking for a low crime rate, walking distance to amenities and a sense of community, the realtor said. Top concerns included affordable housing and a low housing supply. The report errs, however, in specifying Daniel McIntyre alone in its top 10 NIC ADAM / FREE PRESS A for-sale sign Wednesday on Toronto Street in the Daniel McIntyre neighbourhood in west central Winnipeg. 'It's very exciting. This is now showing, "Hey, this is a destination ^ this is a place that people can call home that is affordable"'— Coun. Cindy Gilroy (Daniel McIntyre) list; it’s meant to highlight the West End area as a whole, according to Akash Bedi, a Re/Max broker and liveability report contributor. The West End checks many boxes — accessibility to transit and shops, affordability, an overall feeling of community, said Bedi. “This is _ a hot market for newcomers to Winnipeg.” He estimates nearly half of his firsttime homebuyer clients have been in Canada for three years or less. A majority immigrate from India, the Philippines and Ukraine, Bedi said. Daniel McIntyre residents typically don’t need a car, due to transit and active transportation routes access; it keeps costs down, agreed Gilroy. “Our homes are affordable,” she said. “People are trying to buy into the market, which is expensive in other cities and other parts of our city.” A residential detached home in Winnipeg cost, on average, $437,367 in June, according to a recent Winnipeg Regional Real Estate Board analysis. The Re/Max report highlighted Winnipeg as having the most neighbour hoods best suited for big-city lovers without kids. Charleswood, Linden Woods, Westwood and Royalwood made the top 10 list. Winnipeg also tied Montreal in having the highest number of neighbourhoods best suited for big-city lovers with kids. Bridgwater Trails, Sage Creek, Devonshire Park and North Kil-donan were featured. The Re/Max report comes eight months after the Globe and Mail named Winnipeg the country’s best city for raising children and one of Canada’s most liveable cities. “It helps us continue to put the spotlight on Winnipeg as a great place to live in Canada,” said Alberto Velas-co-Acosta, Economic Development Winnipeg’s vice-president, international. The economic development agency launched a campaign following the Globe and Mail’s ranking. It markets a website (liveinwinnipeg. com) internationally and to Canadians living in cities with a higher cost of living. “It’s very exciting to see our point (about) Winnipeg being an ideal place to live validated by data,” Velasco-Acosta commented. Re/Max listed Winnipeg’s West End, downtown and West Kildonan as the city’s most affordable areas. Summerlea, Bison Run and Parkview Pointe are considered Winnipeg’s up-and-comers; Tuxedo, Waverley West and Sage Creek were deemed the most luxurious neighbourhoods by Re/Max. Liveability scores in Re/Max’s report used data from the firm’s 2024 housing market files, the Canadian census and Local Logic.gabrielle.piche@winnipegfreepress.com ;