A Nova Scotia independent grocer famous for its rock-bottom prices is ready to put shovels in the ground as part of an expansion to double its size.
For Tamara Selig, who co-owns Gateway Meat Market with her husband, Jamey, the growth is an “emergency” in light of food insecurity in the region.
They’ve submitted a rezoning application to build a new storefront on their Main Street property in Dartmouth and are waiting to hear back.
The couple opened the store 15 years ago as a meat shop, but it has evolved to include more produce and grocery items. She said it’s become increasingly evident over the past year that there’s a demand for affordable food, and it’s a void they strive to fill.
“We definitely are trying to bring in more items that we weren’t carrying before,” she said.
“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 keep prices low, Selig said the business maintains low overhead costs. It has few employees, no head office, no printed flyers, and Selig herself runs the store’s popular Facebook page.
She also credits a close relationship with local suppliers and “not your usual chain of distribution” for the notorious deals.
“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 said.
“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 recent months, the country’s larger grocers have been blamed for food inflation. In response, companies like Loblaw Companies Ltd. defended themselves by placing the blame on suppliers and increased costs, such as gas.
Selig said Gateway is not immune from those increased costs, but they have made the company “more aggressive and more creative” in finding ways to save money.
“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 said.
“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 at the Nova Scotia Community College, said independent grocers like Gateway have a vital role in Canada.
“The price of groceries is no secret to anyone. Inflation’s high. Groceries are much higher,” he said.
“These stores have played a huge role for those people who are struggling with their weekly bills, including groceries. Huge.”
More competition needed
Last month, the Competition Bureau released a report examining concentration in the grocery sector.
Most Canadians buy food in stores owned by a handful of grocery giants, with Canada’s three largest grocers — Loblaws, Sobeys and Metro — collectively reporting more than $100 billion in sales and $3.6 billion in profits last year.
The solution, the report found, was more competition.
“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 study said.
But the study also detailed the struggles and disadvantages faced by “new players and regional independents” in Canada’s grocery scene.
In speaking with independent grocers, the researchers found that many had to buy their stock from their competitors — such as Loblaws and Sobeys — because they weren’t big enough to have their own warehouses or buy directly from suppliers. As well, larger grocers are paid by suppliers to have their products on shelves.
“Independent stores generally aren’t, and that can put them at a disadvantage,” the study noted.
As well, independent grocers spoke about their concerns that larger chains were buying up smaller ones like theirs and “there wouldn’t be a future for small stores.”
It’s a scenario McHugh acknowledges is happening.
He said for such a small country, it’s “amazing” to him that there are only three major players in the grocery industry — the result of rapid 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 said.
McHugh said the giants are “formidable” and it’s not easy for independents to grow or flourish.
“What you’re going to see is niche players, small independents,” he said.
“For example, in this market, Atlantic 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 any time a small niche player comes along and becomes successful, one of the bigger players buys them.”
The result, McHugh said, is big companies that “keep getting larger and larger.”
Gateway looking to expand
As for Gateway, Selig said it wants to remain a small family-run business and it’s not looking to open a second location.
It does, however, need more space.
The store is currently 2,200 square feet, and the Seligs hope to more than double that space. They recently submitted a rezoning application to the municipality for a new building on the existing property and the property next door they’ve purchased.
“We’re trying to make it at least 5,000 square feet, which will make it a lot,” Selig said.
“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.”
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