By Shannon Hagerman
Elias Nasrallah says he’s watched corner stores like the one he owns disappear from city streets and wonders if he is part of a dying breed.
Nasrallah owns Roma Confectionary, an independent variety store that’s stocked with everything from bananas to cigarette lighters.
He started the family business 12 years ago and says the life of a corner store owner just keeps getting harder.
“For years we had a good name – we had our prices almost the same as the big stores – but now the big guys are taking over,” Nasrallah said.
Nasrallah and his wife tend the Rochester street shop from 7:00 a.m to 11:00 p.m., seven days a week.
They have three children who have already told their parents they don’t want to take over the family business. Nasrallah would like to get out of the business himself, but says he feels stuck.
“You put a corner store up for sale now and you’re dreaming if you think you can sell it,” he said.
Without the advertising, marketing or buying power of the large chains, small corner stores are struggling to compete.
Nasrallah said before the Ontario government passed legislation allowing Sunday shopping in 1992 he had a competitive edge. Now Sunday is one of the slowest business days.
The consolidation of supermarkets and the recent announcement of a national convenience store chain has brought attention to the plight of independent corner store owners like Nasrallah.
Alimentation Couche-Tard Inc., of Laval, Que., recently announced its plan to buy Toronto based Silcorp Ltd., for $220 million.
Silcorp Ltd., which owns Mac’s Milk, Mike’s Mart, Becker’s and Daisy Mart, is being bought out by the Laval company, which operates Provi-Soir, to create the country’s first national convenience store chain.
The deal will create a chain of 1,600 convenience stores and gas stations stretching from Quebec to British Columbia, said Alimentation Couche-Tard chief financial officer Richard Fortin.
No one is sure what effect this will have on the mom and pop shops of the country.
“It’s not our intention to have an impact on them but the food industry players are becoming bigger and bigger, so it means these small players don’t always have the tools… like the funds and the marketing to compete,” Fortin said.
According to Fortin, the buyout will increase the buying power of the large chains. Even his Quebec convenience store chain was affected after mergers last fall by some of the country’s largest supermarket chains, he said.
Loblaws Co. Ltd. bought Provigo Inc., while Sobey’s acquired Oshawa Group Ltd., which operates IGA.
Fortin says he can understand why some independent corner store owners may be fearful of the impending merger.
“It will be tougher and tougher on them, but there are many independents out there that are doing an excellent job and they will survive,” Fortin said.
The owner of Heck’s Confectionary on O’Connor Street says he wonders if his business will survive another month.
Syed Abduel Ahad Ali is faced with a $50,000 tax bill that he says he can’t possibly pay.
Ali, his wife and his three children live above the store in a one bedroom apartment. He says he would love to move into a bigger place but he can’t afford it.
Going into business for himself isn’t something that Ali said he always dreamed of. He says he was forced into it after he couldn’t find a job.
He borrowed money from his family to set up the business four years ago and says he made more money working at a donut shop.
Customers are the ones who benefit if businesses like his survive, he said.
“There are a lot of poor people out there and I try to help them out,” Ali said. “I don’t charge for bread and stuff like that because I want to help them out.
“Some day I might be in their position myself.”