The Food Retailing Structure of the Northwest Territories

Abstract

Food retailers in the Northwest Territories face dramatically different conditions from those of southern food retailers. There are three main differences: (1) small market size, (2) limited geographical access to suppliers and (3) different types of competitors. These differences have resulted in higher food prices and smaller, more general, stores with a wider variety of merchandise than southern supermarkets. Resupply is much less frequent than in southern supermarkets because resupply must be made via either air or barge shipment rather than truck delivery. The N.W.T. food retailing structure comprises three types of food retailers: the independently operated stores, the cooperatives and chain stores. This first examination of the similarities and differences between the store types is drawn from a mail survey of all the food retailers in the N.W.T. The food retailers have adapted to the small, isolated northern markets by expanding their merchandise line well beyond food products. The Hudson's Bay Company stores carry the widest variety of merchandise, while the others carry a more limited product line. Inventory management varies among the store types. The cooperatives generally fail to use the cheaper alternative transportation modes (road or water) where possible. This is not due to location but may reflect poor managerial skills or simply a lack of profit motivation.