Comment 116903

By Haveacow (registered) | Posted March 08, 2016 at 12:18:14

I was told that to have a successful grocery store in eastern Canada you have to have the volume to lower profit margins between .5-.75% per item. To do this your store must have no less 200,000 sqft. of actual shelf space. Not a store of 200,000 sq.ft but a shelf area of 200,000 sqft. This means for most places, you need very large stores. Unless a company is willing to raise the profit margin per item and thus its prices, you can't have older smaller stores. If the market is good I guarantee someone will move in.

Keep in mind all of this is outside of the Walmart issue. Its very difficult for any store to compete against a very large retailer that doesn't have to pay union wages. Most other Canadian Grocery stores have to do this and thus are at a financial disadvantage. Forcing Walmart to unionize won't work either, make no mistake, Walmart will leave Canada if it has to unionize its operations and said this as a threat to anyone thinking about it. This would be devastating to most communities in Canada at least in the short term. Devastating not just to store customers but the many, many food and goods suppliers that they use whom rely on them for their very survival.

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