Big chains snap up two empty locations
January 28, 2009
Winnipeg Free Press
Written by: Geoff Kirbyson
A pair of empty but high-visibility South End buildings are preparing to welcome new tenants.
Original Joe's, a Calgary-based bar and grill restaurant chain, is entering the Winnipeg market via the old Grapes location at Kenaston Boulevard and Grant Avenue, and Home Outfitters has signed on to take over the old Linens 'n Things store across from Polo Park Shopping Centre.
It's the third Winnipeg location for Home Outfitters, a subsidiary of Hudson Bay Co. It also represents the parent company's third property in the Polo Park area as both The Bay and Zellers are in the mall.
John Pearson, the commercial real estate broker at Shindico/IC&I Properties who brokered the Home Outfitters deal, said the fact a lease was signed just days after Linens 'n Things padlocked its doors shows Winnipeg's resiliency to the economic malaise afflicting most of the continent.
"Linens 'n Things went down across North America -- it was a casualty of the recession. Its Winnipeg store was profitable but it shows how a (retailer) can get still get caught up in the national fallout," he said. "Winnipeg was able to bounce back promptly and refill that space. I had several prospects and two offers for it."
Local retail analyst Rob Warren said the two moves, coupled with last week's announcement by Sephora that it will bring its cosmetics and fragrances retail concept to Polo Park in May, are positive signs for the local economy.
"We're still strong retail-wise and employment-wise. We're not seeing retail numbers shrink in Manitoba like they are in Ontario. (The three retailers) are saying they're looking at the numbers (in Winnipeg) and they look good into the future," he said.
After successfully branching out into all three provinces to the west, Derek Doke, president of Original Joe's, said Winnipeg was the next on its radar. He said he has no concerns about entering the highly competitive market this spring when the economy will likely still be slowing.
"We have a comfort food offering that we feel will be accepted in Winnipeg. We're excited to be there. We've been doing quite well during the downturn. People realize they get a big plate of food in a nice, comfortable room with good service at Original Joe's. We're pretty motivated to continue to grow," he said.
It's particularly encouraging to hear an out-of-town restaurateur deciding to come to Winnipeg so soon after the Christmas season, traditionally the slowest time of the year, said Scott Jocelyn, executive director of the Manitoba Restaurant and Foodservices Association. He said considering the intersection, Original Joe's should be able to make a go of it.
"There's so much traffic going up and down Kenaston," he said.
Arni Thorsteinson, CEO of Lanesborough REIT and Original Joe's new landlord, said a $300,000-renovation on Grapes' former longtime home has just begun.
"This will be an entire redo of the space. Grapes was pretty run down," he said.
geoff.kirbyson@freepress.mb.ca |
