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Grocery competition heats up in Hay River

Paul Bickford
Northern News Services
Published Monday, September 10, 2007

HAY RIVER - Hay River is getting a second major grocery store.

Construction is expected to begin this week on the store, which will be attached to the existing Hay River Big Way Foods.

NNSL Photo/Graphic

John Hill, co-owner of Hay River Big Way Foods, stands in front of the existing store and the parking lot where a new grocery store will be constructed. - Paul Bickford/NNSL photo

However, the two stores will remain separate and will have different entrances. The new store will be known as Hay River Super A Foods, while Big Way will be renovated and its name changed to TAGS Gas and Convenience Foods.

The new grocery store will be built into the parking lot of the Big Way.

The venture is a partnership involving John and Tracy Hill, who own the Big Way, and Big Way manager Steve Anderson.

"We would like to be open for spring," said John Hill.

Hill noted business at the Big Way started to increase when Anderson, who had previous experience running a grocery store, became manager.

"We felt unable to provide the service people wanted in this building," Hill said.

The existing Big Way has older equipment, no bakery and narrow aisles.

However, things will be very different in the Super A store, which Hill said will be a full-service grocery store, featuring large aisles, a full bakery and state-of-the art equipment.

"We do have a few surprises in store," he added

Hill declined to give the exact size of the new store or how much it will cost to build.

However, he did say it will be two storeys high with a second-floor office. The rest of the building will feature an open concept with a high ceiling.

The main grocery store in Hay River is currently NorthMart.

Hill believes the town can support two large grocery stores, noting there are already two hardware stores and two lumber yards.

"We feel there's room," he said. "The market can bear two."

Hill added competition is a healthy thing.

The North West Company, the Winnipeg-based firm which operates the NorthMart store, agrees.

"Obviously, competition is good to have," said Craig Wilson, the company's general manager of the region which includes Hay River. "More importantly, it allows us to continue to improve and sharpen our operating skills and provide better services."

Wilson also believes Hay River is big enough for the new store, noting it will basically expand on the service Big Way already provides.

Although owned by the Hay River partnership, the Super A and TAGS stores will be part of a chain involving The Grocery People, a grocery supplier based in Edmonton. The Grocery People also own the name Big Way.

Currently, the Big Way store employs 40 people. That will increase to about 50 with the two separate stores.

The project is being built by Arcan Construction of Hay River.

Hill hopes the new store will encourage more people to shop locally instead of buying groceries in High Level, an Alberta town about three hours to the south.

"We hope to stop a little more of it," he said.

In fact, Hill noted the prices on weekly flyers from The Grocery People will be the same in Hay River as at the Super A store in High Level.

While noting that some items will always be higher priced in the North because of transportation costs, he said, "We want to be competitive in our pricing."