Saan store bids adieu

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This article was published 15/08/2008 (6505 days ago), so information in it may no longer be current.

The Saan Store name is about to officially enter the history books, but its concept of servicing small town Canada will continue on with the latest owners.

Mississauga-based discount retailers The Bargain! Shop paid $8 million for 93 Saan/Red Apple store leases in small town Canada — including 10 in Manitoba — and intends to open The Bargain! Shop stores in all those locations.

Michael Roellinghoff the president and CEO of TB!S said his company was attracted by the real estate opportunities and the staffing that was in place.

The expansion of the chain to 270 stores from about 180 will see the evolution of the small town Canadian retailer come full circle. TB!Ss arose out of former Woolworth’s and Robinson stores which fell by the wayside as Canadian retailers moved to regional malls.

Saan/Red Apple stores grew to a peak of about 350 stores in the late ’90s, but started to be hurt badly by the arrival of Wal-Mart stores and other big box competitors.

But Roellinghoff said he believes that small town Canada might be more predisposed to shop at home now that gas prices are so high and travelling long distances to shop may become less economically viable.

“The way we bring value to customers is with a combination of everyday low prices on everyday products as well we scour the market across North America for end of line products and we are able to provide some brand names products at dramatically lower prices than is typical in the market,” Roellinghoff said. “When there is any kind of economic pressure, our stores are an important part of the community especially in rural Canada.”

He said he believes TB!S model will work when Saan didn’t because of the assortment of products aided by some current economic conditions.

“The business model is quite different,” he said “They were known as a family apparel retailer.”

The expansion of TB!S will further crowd the growing discount retail market.

Loe Charrierrie, chief financial officer of North West Co., which has opened 26 Giant Tiger stores in Western Canada including eight in Manitoba, said its stores are typically larger and in larger population areas.

He said with the right cost structure, the discount store model can work in Canada.

“But as the Saan stores showed, it doesn’t matter how low the prices are if the product assortment is not right,” Charriere said

Roellinghoff said the company plans to assume 10 Manitoba Saan store leases. It is not taking ones in towns like The Pas and Steinbach where TB!S already has stores. In Flin Flon it is taking over the Saan lease but will close the existing location of TB!S because the Saan store is bigger and has a better location.

Liquidation sales have been on-going at Saan stores since June. Many locations have already closed and the rest will close this weekend.

James Cohen, the executive vice-president of Gendis Inc., the former owners of Saan stores and the son of founder Albert Cohen, said it is a positive development for the chain.

“It is good that there will be strong ownership and hopefully the employees will be able to keep their jobs,” he said.

Gendis remained the landlords for six locations including the Red Apple store on Portage Avenue in downtown Winnipeg. That location will not reopen as a TB!S because the chain already has a Portage Avenue site.

Cohen said he does not believe there will be a problem finding another tenant.

martin.cash@freepress.mb.ca