Downtown Residential Growth is Key to Attracting a Downtown Grocery Store

Earlier this year, City Council requested a Market Sounding be initiated by the Saskatoon Regional Economic Development Authority (SREDA) to determine what conditions are required to attract a grocery store to locate in the Downtown.

“It was important to Council to determine both the level of interest and the barriers that exist to establish a grocery store in downtown Saskatoon," says Councillor Cynthia Block.  "Getting feedback from grocers, food cooperatives, and developers who would be interested in owning/operating a grocery store will help Council determine next steps."

Now complete, SREDA’s Market Sounding report reveals key challenges expressed by industry partners, such as the current population density, cost of land, rent, construction, and establishing a site in an appropriate location with the desired building size and adequate parking.  Grocers who participated in the Market Sounding were asked whether or not they were currently interested in locating in Downtown Saskatoon.  Most indicated they had no desire as the current population is not sufficient to support a store.

"SREDA's research concluded that industry continues to be interested in the Saskatoon market; however, currently there is insufficient population to support a downtown grocery store.  That being said, if the downtown population continues to grow, and we develop the right mix of incentives and business conditions, we are hopeful that it's a case of when, and not if, a grocer will invest in our downtown," says Alex Fallon, President and Chief Executive Officer of SREDA.

Given the findings, the Administration is recommending to City Council that efforts be focused on increasing the number of residents in the Downtown, particularly in the north end where there is already a large concentration of residential buildings.

Current incentives in place for residential development in the Downtown, such as Vacant Lot and Adaptive Reuse Incentive Program Policy No. C09-035, are being recommended for review with the goal of making them more accessible, comprehensive, and effective in attracting developments.  These incentives may also target specific locations in the Downtown as a means to address population density.

“A robust suite of incentives aimed at prospective grocery stores will be prepared for Council’s consideration so that when a grocer comes forward, development of a grocery store can be expedited,” says Randy Grauer, General Manager, Community Services Department.

For a copy of the Market Sounding report, please visit saskatoon.ca/citycentre, or contact the Planning and Development Division at 306-975-7697.