Competition forces SuperValu out of business

Photo by Vince Fedoroff

After 37 years in the local grocery business, SuperValu - formerly Food Fair - is closing, co-owner Mike Palamar confirmed this morning.

Palamar told the Star the lack of business created by the increased competition from the Real Canadian Superstore and continuing competition from Extra Foods is making it too tough to make a living.

Feb. 14 will be the last day officially, if there’s any stock left by then, he said.

Palamar said the grocery store will be operating normally for the next two weeks, but come the first of February, will begin two weeks of reduced prices and sales to move the remaining inventory out the door.

“There’s been a lack of business ever since the Superstore opened up and with Extra Foods kind of continuing,” he said. “It is hard to fight the two corporate stores when they are less than two minutes away from you.”

Food Fair was started back in 1972 by Don Palamar, Mike’s dad, and his business partner, Bob Evans, when they purchased the grocery arm of Taylor and Drury, and renamed the business located in the Horwood’s Mall along First Avenue.

Mike and his brother Jim bought out Evans in 1985, and in 1991, Food Fair moved into its current location.

Food Fair changed its name and came under the Loblaws’ SuperValu banner some three years ago, when it was still believed Loblaws would be following through with its plan to close Extra Foods once its lease was up. That hasn’t happened.

Under the SuperValu banner, the former Food Fair business has remained under the independent ownership of the Palamars, including Don, who remained on as a partner after retiring a handful of years ago.

Both the Superstore and Extra Foods, however, are run directly from the corporate headquarters.

It’s difficult, said Palamar, to compete with pockets that are so deep.

Palamar, 45, has worked in the family business for 32 years, ever since he was 13.

“It is hard to give up what you have done for however many years,” he said. “But then again, you just have to look at the numbers.

“It just does not make any sense to continue.”

Palamar said the business has its regular clientele that he suspects will miss its personal services, particularly the mining camps and fishing lodges that phoned or faxed in their orders which were put together by store staff.

Residents of Old Crow, he said, call regularly with orders, which are delivered by Air North.

“I would just like to thank our customers for all the years, and the staff.”

It was decided to give the 10 full-time and 15 part-time employees as much notice as possible as a means of maximizing their time to look for other employment, he said.

“They are all very competent people, and I am sure they will have no problem getting other jobs.”

As for Palamar: “I’ll be taking a vacation with my family, then I will look for something to do.

“I have my fingers in one or two things coming up.”