Winnipeg Free Press

Winnipeg Free Press (Newspaper) - January 28, 2025, Winnipeg, Manitoba B5 TUESDAY JANUARY 28, 2025 ● BUSINESS@FREEPRESS.MB.CA ● WINNIPEGFREEPRESS.COM BUSINESS Peavey Mart closing eastern locations, sites here bear ‘store closing’ signs AS RUMOURS of a chain-wide closure rippled through the smaller centres that make up Peavey Mart’s primary market, the hardware and farm goods retailer remained silent Monday on the fate of the majority of its 90 stores in Canada. Officially, Peavey Industries LP of Red Deer, Alta., said it will shutter 22 locations in Ontario and Nova Scotia — but the “store closing” signs reported at Peavey locations in Western Canada tell a different story. The manager of one of six Peavey Mart stores in Manitoba referred ques- tions Monday to Peavey’s head office, but requests for interviews were not answered. There are two stores in Win- nipeg; one each in Steinbach, Winkler, Brandon and Swan River. “All I can say is that there is a ‘store closing’ event in-store right now, fea- turing 10 to 30 per cent off discounts — and all items are final sale,” the store manager said. Last week, the company announced the closure of its 22 Ontario and Nova Scotia stores by April. “The closures are part of a measured strategy to optimize Peavey’s retail footprint, focusing on reallocating re- sources to markets with stronger per- formance while addressing underper- forming locations,” the company said at the time. Earlier in January, the company an- nounced a $155 million refinancing ar- rangement with Boston-based Gordon Brothers, which is an expert in liquid- ating inventory, including leased retail locations. Craig Patterson, who does applied research for the University of Alberta Centre for Cities and Communities and is the founder and publisher of the digital trade publication Retail Insider, said despite what the company is or is not saying, “it’s obvious” the chain is closing. “There is a liquidation happening with signs that say, ‘store closing,’ so it’s not a secret at all,” Patterson said in an interview with the Free Press. Last summer, the farm and ranch supply chain announced it was ending its four-year relationship as the hold- er of the master franchise in Canada for Ace Hardware as of Dec. 31, 2024, something it assumed after Rona and Lowe’s ended their relationship. It has been reported Canadian Ace Hardware store owners were invited to renew their agreements directly with Ace International, based in the U.S. In addition to refusing to confirm if it intends to close all 90 stores, late Monday afternoon, the company had removed news releases from its website about the closure of 22 stores and the Gordon Brothers investment. In one of those releases, Peavey In- dustries LP CEO Doug Anderson said: “The Canadian retail environment has faced significant disruption over recent years, and Peavey has not been immune to these challenges. We recognize that difficult decisions like these (closing 22 stores) are necessary to create a more stable foundation for the long-term suc- cess of our business. While this is a step forward, it’s part of an ongoing process to adapt and rebuild in response to changing market dynamics.” Among other things, Patterson said it’s another blow to the small town re- tail landscape in Canada. “Peavey really does have a purpose in these communities,” he said. “There is not a lot of competition when it comes to some of the farm supply stuff and no competition in smaller markets.” Peavey Mart had its original roots in Winnipeg and opened its first store in Dawson Creek, B.C., in 1967 under the National Farmway name. It was rebranded Peavey Mart in 1975, when it was a subsidiary of Peav- ey Company of Minneapolis. It re- turned to Canadian ownership in 1988. martin.cash@freepress.mb.ca MARTIN CASH MIKAELA MACKENZIE / FREE PRESS Peavey Mart remained silent Monday on the fate of the majority of its 90 stores in Canada. ‘Strength in numbers’: south Winnipeg neighbourhood adds dozens of businesses in recent years Bridgwater rises on development boom F ROM his grocery store win- dow, Babu Sultan has watched his surroundings blossom. He first carted halal meats and naan bread into Essentials Bazar Ethnic Foods two years ago. Altea Active — a mammoth gym spanning at least 80,000 square feet — had already opened across the street. Save-On-Foods and Red River Co-op were Bridgwater staples. The Uncle Omlet restaurant opened in the same strip mall as Essentials Bazar earlier this month. Chai Mehfil, another restaurant, popped up just four months ago. Waverley West — the City of Winni- peg ward encompassing Bridgwater — saw a population increase of 36.6 per cent between 2016 and 2023. Mean- while, more than 60 businesses have opened in Bridgwater over the past decade. Development isn’t stopping. “I was thinking the area will be … suc- cessful for the business,” said Sultan, 60. He moved to Bridgwater from Dubai nearly three years ago, following his children’s relocation to south Winnipeg. The mechanical engineer found a lack of halal options in the neighbourhood; it prompted him to open Essentials Bazar. Customer demand is there, Sultan said. He’s expecting foot traffic to con- tinue growing as more housing units are built and filled. Yannick Bohm shares the same thoughts. “There’s obviously going to be more people shopping,” said Bohm, manager of a nearby Supplement King location. The health chain opened in Bridgwater when “there wasn’t really a whole lot going on.” A subsequent boom in development has been great for business, Bohm noted, adding Supplement King wanted to join the community as it was being created south of Abinojii Mikanah. Coun. Janice Lukes (Waverley West) threw a block party for Bridgwater businesses before the COVID-19 pan- demic. There were around 25 business- es then, she estimated. She held another block party last summer. About 62 companies were on the list. “It’s fantastic,” Lukes said. Cafés, banks, insurance companies, dental and veterinary sites, cannabis shops and pizza joints have conglomer- ated in the area over the past decade, she noted. Many brands are firsts in Winnipeg. Commercial spaces continue to open on the main floors of new hous- ing complexes. One of the challenges local compan- ies face is a lack of public awareness, Lukes said. “We’re not on a linear strip,” she said. “We’re not like Pembina Highway, we’re not like Henderson (Highway).” She threw the block party in Septem- ber, in part, to bring visibility to Bridg- water shops. They’re often tucked off roundabouts or in strip malls. During the event, Manitoba attendees went on scavenger hunts, entering stores to scan QR codes. “People get lost when they come into the neighbourhoods … if they’re not from the area,” Lukes said. She’s encouraged businesses to target their advertising locally. She’ll meet with the area’s enterprises in February to fur- ther discuss promotion, Lukes said, not- ing more signage will be erected. “I would love to see the businesses marketing themselves as a destina- tion,” Lukes said. “There’s strength in numbers.” When asked about creating a busi- ness improvement zone, Lukes pointed to BIZ levies: “Businesses have a lot of challenges … I think there’s a hesitancy to that.” The area might be better suited for a business association, she added. Mean- time, she’s looking south of Bridgwater for future commercial development. Three swaths of land near the inter- section of Kenaston Boulevard and Waverley Street are pegged for busi- ness growth. Lukes highlighted prop- erty west of South Pointe School, space immediately surrounding the new Pay- works headquarters and a lot west of it across Kenaston. Property developer Ladco Co. Ltd. is overseeing development and project timelines, Lukes said. Ladco declined to provide project details for the South Pointe property Monday. “I think we’re on the cusp of hearing some great announcements,” Lukes said. Waverley West is Winnipeg’s fastest growing ward, a 2023 city report out- lined. Between 2016 and 2023, the ar- ea’s population grew by 16,111 people (36.6 per cent). Winnipeg’s total popu- lation jumped 11.3 per cent during the same timeframe, according to city data. Barb Ginter-Boyce moved to Bridg- water in July. She was looking to down- size and was drawn to her apartment building’s amenities — a gym, dog washing station and clubhouse. Ginter- Boyce called the business landscape “convenient.” “My bank is here, grocery store is here,” she said during a Save-On-Foods run. “It’s just all nice and contained.” Bridgwater was built with a town centre in mind. Building permits for the community started being taken out in 2009. The neighbourhood’s medi- an household income hovers between $100,000 to $124,999, a 2023 City of Winnipeg demographic outlook shows. To the east, Sage Creek has also seen rapid growth in businesses and residents, noted Coun. Brian Mayes (St. Vital). He counted 3,200 doors in Sage Creek in May. Some 10,000 people live in the neighbourhood, Mayes approximated. In 2021, roughly 7,400 residents called Sage Creek home. “(It’s been) non-stop growth,” said Angele Lavergne, owner of Marquis Dance Academy. She relocated her studio to Sage Creek around nine years ago. More space and the promise of young local families drew her. Now, upwards of 1,000 stu- dents are registered at Marquis. She’s clocked dentists, physiother- apists, pet stores and restaurants mov- ing in: “The community is getting every single service they could imagine.” Bonavista, a nearby southeastern community, is one to watch for business development, Mayes said. The com- munity is still in its infancy. The Refinery District in Winnipeg’s River Heights-Fort Garry ward, also in its infancy, is growing its commercial space. Jino Distasio, a University of Winni- peg urban geography professor, said he’s “not surprised” to see more com- mercial and retail hubs in Bridgwater and Sage Creek. “In many ways, this was expected and planned for as both of these subdiv- isions incorporated aspects of a town square design,” he wrote in an email. Further, the private sector chases customers and both communities are high-growth zones, he noted. “Ultimately, these newer areas will hit a threshold of what the local residents can support,” Distasio said, adding retail may expand to a regional scale, similar to growth along Route 90. Retail is “variable and volatile” and subject to trends, Distasio underscored. Continued population growth will re- quire the city to balance demands for services like fire and police, he added. The City of Winnipeg projects its population will reach 972,600 people by 2028. It’s a five-year increase of 62,300 residents, an August 2024 economic de- velopment and policy document shows. gabrielle.piche@winnipegfreepress.com GABRIELLE PICHÉ PHOTOS BY MIKAELA MACKENZIE / FREE PRESS Babu Sultan, owner of Essentials Bazar Ethnic Foods, shows the selection in his store in Bridgwater. The south Winnipeg neighbourhood has noticeably grown in population and its business sector in just the two years he has had the location, he says. ;