A new front opens up in the grocery wars!

Is this the future of grocery shopping for the Northwest? The Overwaitea Food Group has begun to open up a no frills operation called PriceSmart Foods, stores which as their website states “we sell food for less – anything to save you money!”

And it’s no doubt that it’s that marketing statement, which has the folks at the UFCW a little concerned for their future. In the last number of weeks speculation has been making the rounds that the Overwaitea Group plans on converting as many of their old line stores as possible, stores such as Save on Foods and the Overwaitea brand into these new design, no frill operations. Some say it’s to control costs and streamline operations, others that they hope to be able to sell off the chain to a new investor, once they have an attractive bottom line to offer up.

Regardless of the reasons, the concern of the UFCW is that it’s another attempt go around existing collective agreements and bring in more friendly work terms for the employer. The move certainly brings fears that it could be the beginning of the Walmartization of British Columbia's retail food market.

The march towards the PriceSmart banner has begun with stores in the lower mainland and in Fort St. John taking on the new looks and new terms of agreement. A collective agreement signed between the UFCW and PriceSmart is in effect until the year 2015, with a re-opening window available in 2010 should neither side find the new arrangement to their liking. It provides an interesting glimpse into what the future may hold for the Northwest grocery outlets from Podunk to Prince George. With a new development planned for Highway 16 on the old BC Hydro site, perhaps a PriceSmart Foods may be in our future sooner than we think!

It could prove to be a most contentious issue, with the UFCW preparing to take on the Overwaitea group on its plans for future rebranding of existing stores. One only has to think back a few years ago to negotiations at the local Overwaitea, a very tense time for the employees of that store, with jobs and pay on the line and even fears of a store closing making the rounds at the time.

By far the grocery industry seems to be the most hotly contested business in the province, both between the different companies and between the companies and their unions as well. It will be interesting to see how this plays out over the year and what the effect may be on the northwest.