Calgary’s grocery store landscape is evolving as population growth continues to outpace the expansion of traditional grocery stores.
According to Hani Abdelkader, a local real estate expert, while Calgary’s population has surged by 48% since 2008—from 1.1 million to 1.68 million people—grocery store space hasn’t kept up with the demand.
Abdelkader, who is Principal at Avison Young Commercial Real Estate, highlights the trend toward smaller grocery store footprints, which has become more prevalent in recent years.
“In 2008, the average grocery store size was 62,000 square feet. Now, it’s around 42,000 square feet, and it’s continuing to decrease,” said Abdelkader. “This shift is due to a lack of available real estate for large-format stores and the growing trend toward mixed-use urban developments, where grocery stores need to fit into smaller spaces—often 20,000 square feet or even 10,000 square feet.”
The rise of smaller, neighbourhood-focused grocery stores is especially noticeable in areas in residential areas. “Smaller neighbourhood stores are becoming more common. A lot of that growth is due to the rise in alternative grocery channels, such as Walmarts and Shoppers Drug Mart,” noted Abdelkader.
He also pointed to the increase in ethnic grocery stores in Calgary, with both large players like T&T and smaller, independent stores like the Italian Centre stores making a significant impact.
The expert also noted the growing presence of national grocery banners adopting smaller footprints.
“We’re seeing national grocery banners like Loblaws and Sobeys getting into ethnic models, and discount models like Freshco and No Frills are also gaining traction with smaller footprints. These smaller stores are definitely active in the market,” said Abdelkader.
One notable example of this shift is No Frills, which has opened a 10,000-square-foot location at West Village Towers on 9th Avenue. This move is part of a broader trend of smaller format grocery stores in the area. Sobeys is also following suit, with plans for a 12,000-square-foot urban format store in the Beltline area, just outside downtown Calgary.
Looking to the west side of the city, Sobeys is also preparing to open a new location in West Springs, targeted for a September to November timeframe. This store will be part of the Truman development in the area, further solidifying the trend of smaller grocery formats adapting to the needs of urban populations.
As Calgary’s grocery market diversifies, the rise of smaller stores and ethnic models is reshaping the way residents shop for food. With growing demand for accessible, convenient shopping experiences, it’s clear that the grocery store landscape in the city is evolving to meet the needs of an increasingly diverse and urban population.
According to an Avison Young report,
- Since 2008, the amount of grocery store space available per individual in Calgary has decreased from 3.5 per capita to 2.5 per capita. This reduction reflects a shift in the retail landscape, driven by evolving market demands and urban development trends.
- The average size of grocery stores peaked at 62,000 square feet in the 2000s but has since declined to 41,000 square feet for newly developed stores. This trend is influenced by the rise of high-density neighbourhoods and changing consumer preferences.
- The expansion in population and density has outpaced the current availability of grocery stores, leading to a gap in meeting consumer demand. In response, companies have opted towards quickly developing more smaller, compact grocery stores to better accommodate this growing need.
