Northern Stores used to have a monopoly over Cree customers and their money. But those worry-free years for Northern are a thing of the past, a victim of the realities of the marketplace.
Now for the first time Northern faces competition from Native businesses and it’s fighting back with everything it’s got.
Winnipeg-based North West Co. has $585 million in annual sales and it’s not about to give up on that market without a fight.
But some Native-owned stores say Northern goes too far, using unfair competition to snuff out rivals.
Sandy’s Corner Store in Whapmagoostui was one of the first stores to offer Northern competition in a Native community in Canada.
Sandy’s manager Kevin Hatt says Northern is waging a concerted campaign to drive his store out of business. He says Northern is undercutting competitors’ prices to the point where no one makes any money. But once the competition is driven out, Hatt warns. Northern will hoist up its prices again.
Bernie Delmaire, operations manager for Northern stores in Nunavik, flatly rejects these charges. “No, I have never heard that. Our policy is never to have a price war. We don’t do that.” Delmaire defended Northern’s policy of sending employees into rival stores to check up on their prices. “That’s normal business practice everywhere. We have to check our competition to see what’s going on to stay competitive.” Still, Delmaire acknowledged that Northern has had to adjust to a new competitive market it’s never faced before. “It’s becoming more competitive, for sure.” But Northern isn’t worried, he added. “That’s the way the world is going. I don’t think we lose sleep over it.” Jim Deyell, operations manager for Northern stores in James Bay, said the new competition is healthy and northern consumers are benefitting.
“It’s a concern in the eyes of the merchant only. The consumer is the one who makes the choice.”
