A long-vacant grocery store in Winnipeg is set to return to life as FreshCo prepares to open a new location in Fall 2026, marking both a community milestone and a broader signal in Canada’s evolving grocery landscape.
Construction is now underway at 1870 Burrows Avenue, where a former Sobeys store has sat empty since closing in December 2016. The redevelopment, led by Shindico Realty Inc., will see FreshCo take on the role of anchor tenant in a revitalized retail space that has remained dormant for nearly a decade.
For local residents, the reopening represents the return of a full-service grocery option after years of limited access to fresh and affordable food. For the industry, however, the project reflects a more strategic shift in how discount grocery banners are expanding and how retail landlords are repositioning legacy assets.
Discount Grocery as a Strategic Growth Engine
FreshCo, operated by Sobeys Inc. under parent company Empire Company Limited, has grown steadily since its launch in 2010. The banner now operates more than 125 stores nationally, with a focus on delivering fresh food at lower price points through a simplified, high-efficiency format.
In recent years, the brand has played a central role in Empire’s broader discount strategy. Across Western Canada, the company has converted dozens of underperforming conventional grocery stores into FreshCo locations, effectively repositioning existing real estate to align with changing consumer demand. That phase of expansion is now nearing completion, with the majority of targeted conversions already finalized or underway.
As a result, the company’s focus has begun to shift. While Atlantic Canada has emerged as a key battleground for new store development in 2026, targeted infill opportunities such as Winnipeg are increasingly important. These projects allow FreshCo to enter or strengthen its presence in specific communities where demand for value-oriented grocery options remains high.
Reviving a Long-Dormant Retail Asset
The Winnipeg project highlights a growing trend in Canadian retail real estate, where landlords are seeking stable, high-traffic tenants to reactivate large-format spaces that have remained vacant for extended periods.
In this case, the former Sobeys location represented a significant gap in the local retail landscape. By securing FreshCo as a replacement tenant, Shindico Realty has effectively aligned the property with a format that is better suited to current market conditions.
“FreshCo is the perfect fit for this community, offering another much-needed grocery option and bringing a long, dark space back to life,” said Michael Stronger, Broker at Shindico Realty Inc., in a statement.
The decision reflects a broader shift in leasing strategy. Rather than prioritizing traditional full-service grocery formats, landlords are increasingly turning to discount banners that can deliver consistent foot traffic and align with evolving consumer expectations around value.
A Changing Competitive Landscape
The expansion of FreshCo also underscores the intensifying competition within Canada’s discount grocery segment. Banners such as No Frills and Food Basics have long held strong positions in the value-focused category, particularly in Ontario.
FreshCo’s growth has added another national player to the mix, particularly as it expands beyond its traditional strongholds. Its continued rollout into underserved markets suggests that competition is no longer limited to major urban centres, but is increasingly playing out in neighbourhood-level trade areas where access and affordability are key concerns.
At the same time, macroeconomic pressures continue to shape consumer behaviour. While food inflation has moderated from earlier peaks, many shoppers remain focused on price, driving sustained demand for discount-oriented formats. In this environment, banners that can combine low prices with a credible fresh offering are well positioned to capture market share.
A Signal of What Comes Next
The reopening of a single grocery store may appear incremental on the surface, yet it reflects several larger shifts underway across the Canadian retail sector.
First, it highlights the ongoing transition from conventional grocery formats toward discount-driven models. Second, it demonstrates how landlords are adapting to this shift by repositioning existing assets rather than relying solely on new development. Finally, it underscores the importance of targeted expansion strategies, as national retailers seek to fill gaps in their networks while responding to local demand.
For Winnipeg’s Burrows Avenue community, the arrival of FreshCo will restore a long-missing retail service. For the broader industry, it offers a clear example of how discount grocery, real estate strategy, and consumer behaviour are increasingly intersecting.
As FreshCo continues to expand its footprint across the country, projects like this suggest that the next phase of growth will be defined less by rapid market entry and more by precision, focusing on the right locations, the right formats, and the right value proposition for today’s consumer.
