Three Edmonton businessmen have purchased the Legal Co-op, who have changes in mind to make the outlet viable as a grocery store.
The ownership group is comprised of Ahmar Syed, Kashif Alan and Nadeem Mirza. The three have experience in convenience stores, land development and dry cleaning.
High atop their priority list is bringing down prices.
“The prices are a little too high for the community,” said Syed, 37. “Right now we are working with different suppliers to get the best price.”
The sale becomes final June 8. The new owners are in the process of surveying town opinion before deciding on a new name.
Other potential changes include extended hours, opening on Sundays and expanding into areas like hardware, electronics and stationery. The owners could also add seating and fast food.
Syed has about 12 years of experience in the convenience store business and thinks his partnership has an advantage over the Co-op structure.
“They are a big organization and they had a lot of overhead expenses which we won’t have. We are running as an individual, not as a corporation,” he said.
Syed and Alan will both work full-time at the store. They’ve offered jobs to all the former Co-op employees who want to stay.
“We need support from the people because we are new people here and without support we cannot be successful,” he said.
The partners have plans to buy other small town grocery stores.
They outlined their plans for the Legal store to the town’s council at a meeting May 19.
“I’m excited that it’s staying a grocery store,” said Mayor Albert St. Jean.
“These people are willing to give it a go and I’m hoping that they succeed because we do need that store in our town.”
A change in the store has been looming for years as its annual sales have remained stagnant at approximately $1.8 million despite population growth of 13 per cent in the town. The Co-op’s current board spent months trying to turn the money-losing store around but it lost more than $100,000 last year.
A plea for more community support last fall increased sales by 15 per cent but that was just half the 30 per cent the board felt it needed to keep operating the store. The board voted unanimously last month to sell.
“We were quite pleased to sell it to someone who wished to keep the food store in Legal. It was the number one priority,” said board president Colleen Prefontaine.
The sale drew more than one offer but Prefontaine wouldn’t be specific. The Co-op has operated the store since 1942.
“It was a tough decision but we also have to treat it like a business,” Prefontaine said.
“We had to look at the dollar and cents of the whole thing and that was how we made our final decision, but there was a lot of emotion and regret.”
The Co-op will continue to operate its fuelling station and delivery trucks. Former grocery manager Bev Seitz will manage that business.
