Red River Co-op to open grocery store, pharmacy at Portage Place redevelopment

A Red River Co-op full service grocery store and pharmacy — “one of the missing pieces in the puzzle of downtown” — will be an anchor in the massive redevelopment of the former Portage Place mall.

True North Real Estate Development announced Wednesday the downtown location will include a 22,500-square-foot food store and a 6,500-sq.-ft. pharmacy.

“Red River Co-op was founded nearly 90 years ago on the belief that people working together can create stronger communities. Our investment in the Portage Place redevelopment reflects that same belief today,” Red River Co-op CEO Craig Gilpin said in a news release.

“This project is about more than building a food store and pharmacy, it is about bringing essential services back to the heart of our city, investing locally and helping create a downtown Winnipeg that future generations will be proud to call their own.”

The store is expected to open in 2029 and create 57 local jobs. It will be Red River Co-op’s 10th food store and pharmacy location, and part of True North’s $650-million transformation of Portage Place.

True North said a full-service grocery store has long been a key component of its plans for the project. Community consultations and surveys consistently identified access to grocery services as a “priority need.”

“Access to fresh food, household needs and pharmacy services within walking distance is an essential part of improving the livability of our downtown for the thousands of people who already call downtown home, and the thousands more who soon will,” said Jim Ludlow, president of True North’s real estate development arm.

Red River Co-op will join the Healthcare Centre of Excellence and a planned residential tower at the site. Construction of the health-care centre is underway. The the 216-unit residential tower is slated as the project’s second phase.

“Access to fresh food, household needs and pharmacy services within walking distance is an essential part of improving the livability of our downtown.”

Mayor Scott Gillingham, during a news conference at Fred Douglas Place, called the announcement “a very big deal” in a much larger effort to reshape downtown.

“A full-service grocery store downtown has been talked about for years as being one of the missing pieces in the puzzle of downtown,” Gillingham said.

“Because for people who live here and work here, having access to fresh food and household essentials and pharmacy services matters, because it helps downtown feel more complete.”

Gillingham said there are more announcements to come.

“I’ve recently seen proposals for downtown projects that are incredibly exciting, projects with the potential to transform entire blocks of our downtown and completely change how people experience the heart of our city,” he said. “So, stay tuned.”

Southern Chiefs’ Organization Grand Chief Jerry Daniels said the grocery store will be especially important for the redevelopment of the former Hudson’s Bay building on Portage — a $310 million project, named Wehwehneh Bahgahkinahgohn (“it is visible”) that will feature hundreds of homes and affordable housing for First Nations citizens.

“Housing cannot stand alone,” Daniels said. “If we want people and families to thrive in downtown, we need some things that every neighbourhood requires. They need strong foundations, strong organizations, that will bring food, health care and pharmacy services and community spaces and create a more safe downtown and walkable connections.”

Daniels said the announcement closes a gap First Nations citizens face, including barriers to food equity and affordability.

“It helps downtown feel more complete.”

“When fresh food and pharmacy services are not close by, people are forced to travel far, pay more or go without the supports they need,” he said, adding Wednesday’s announcement will support better health outcomes.

Kate Fenske, CEO of the Downtown BIZ called the announcement “really incredible news for this community.”

“It’s one part of so many different moves, investments, commitments and collaborations… happening right now,” she said. “I think people are going to look back between 2025 and 2030 (and say), ‘Wow, did downtown ever change for the better.’”

The province’s recently released grocery price study pointed to the need for a grocery store downtown, noting the redevelopments of Portage Place and the former Bay building are “helping to bring people downtown and create the business case for a new full-service grocery store in Winnipeg’s core.”

The store will be located in the Portage Avenue-facing space once occupied by Staples.

It’ll be smaller than a typical Co-op — the supermarkets in Grant Park Shopping Centre and off Dakota Street are 55,000 sq. ft. — so the downtown departments will be “a little tighter,” Gilpin said.

Co-op hasn’t designed the space yet. The company expects to take possession in 2028, based on True North’s timelines. Gilpin estimated the company will spend more than $10 million on the new site.

True North has embedded a tenant construction allowance into its lease, Gilpin said, declining to give further details. He didn’t say how long Co-op’s lease would be, other than “for a long time.”

“We believe downtown matters,” he said. “Strong cities need strong downtowns, and strong downtowns need everyday services. This project is about bringing food access, pharmacy care and neighbourhood services back to the core.”

Co-op has been searching for a downtown location; talks with True North began last year. The space is ideal, in part, because of a direct loading dock off Vaughan Street, Gilpin said.

He said Red River Co-op’s membership, currently at about 330,000, will grow after the store opens its doors.

Security will likely resemble measures at the grocer’s nine other Manitoba locations, he said, adding the pharmacy will be separated from the food store by a hallway.

The owner of another area grocery store welcomed the news.

“I’ll be very happy for the people who do not have a grocery store in that zone. We’re a little far from them,” said Kishan Zalawadia, who owns Downtown Family Foods at Broadway and Donald Street. “People will be very happy, because they’ll have a different option to explore.”

Zalawadia said he doesn’t see the new store as competition.

“Now they can compare the prices,” he said.

He said it’s uncommon for people to make the trek from the Portage Avenue area to his store, saying many people go to the nearby Giant Tiger, instead.

scott.billeck@freepress.mb.ca

gabrielle.piche@freepress.mb.ca

morgan.modjeski@freepress.mb.ca