Red River Co-op adds three rural food stores
Winnipeg, Manitoba – Red River Co-op has agreed to lease three of the Marketplace food stores from Federated Co-operatives Limited (FCL) in the Manitoban communities of Lorette, Stonewall and Selkirk.
The dates that the stores will open under Red River Co-op ownership are as follows:
July 12, 2018 – Selkirk – 335 Main Street
July 17, 2018 – Stonewall – 420 Main Street
July 19, 2018 – Lorette – 11 Laramee Drive
Pending completion of customary closing conditions, the transaction is expected to close by July 19, 2018. Both parties have agreed to work together to ensure continued high level of customer service is provided during the transition. Plans are in the works to changeover some of the branding elements from Marketplace to the Co-op shield in the coming weeks. We are also working to finalize plans to upgrade these locations to our latest image standards.
“Red River Co-op’s leasing of the three Marketplace food stores was driven by a desire to add an additional service to our members living outside of Winnipeg,” says Red River Co-op CEO Doug Wiebe. “Because of Red River Co-op’s strong market performance and solid financial base, now is the perfect time to expand our food business with the support of our new employees.”
“FCL’s primary business is serving the more than 180 independent retail co-operatives across Western Canada, largely as a wholesaler,” said Patrick Smith, Vice-President of Retail Operations at FCL. “This is an opportunity for Red River Co-op to expand its network and allow FCL to step back from directly operating brick and mortar stores.” Approximately 150 employees work at the stores and are involved in this transaction and will continue to be employed at each of the respective locations following the acquisition. Customers can expect uninterrupted service as the stores move from Federated Co-operatives Limited ownership to Red River Co-op operations.
“This transaction strengthens our presence in Stonewall and Selkirk, where we already have gas bars, and will open a new market in Lorette,” says Red River Co-op CEO Doug Wiebe. “We are excited to add a talented group of people to our team who are experienced working under our current systems and programs, and we will assist them with some additional training to integrate some of the unique things we do under our cooperative business model. Those who have shopped in the stores over the years will continue to see friendly, familiar faces, and the products and services Co-op shoppers have always enjoyed.”
Adding food stores to three new markets is an opportunity for customers to become Red River Co-op members and enjoy lifetime membership benefits, including profit sharing. In 2017, Red River Co-op members shared in $29.3 million of profits.