In a strategic move that signals a fresh approach to urban grocery retail, Food Basics unveiled its innovative “urban concept” store in downtown Ottawa this week, marking the discount grocer’s bold entry into the competitive city core market. Located at 222 Queen St., the 22,000-square-foot location represents a significant departure from the chain’s typical suburban format, designed specifically to serve the unique needs of downtown residents and workers.
The new location, which officially opened its doors Thursday, occupies the former home of Sobeys, which shuttered in 2021 amid shifting retail patterns during the pandemic. This marks a notable return of affordable grocery options to an area that has seen limited discount food retail presence in recent years.
“Downtown Ottawa presents a unique opportunity to reach customers who prioritize both affordability and convenience,” said John Manax, vice president of operations at Food Basics. “Our urban concept store is tailored specifically to address the shopping patterns we’re seeing from professionals, students, and families living in the urban core.”
The Queen Street location features several adaptations from the standard Food Basics model. Most notably, the store offers an expanded selection of ready-to-eat meals, grab-and-go options, and smaller package sizes that cater to the on-the-go lifestyle of downtown shoppers. The store layout has been reconfigured to maximize efficiency in a smaller footprint while maintaining the wide selection customers expect.
According to CO24 Business analysis, this move comes as grocery retailers across Canada are rethinking their urban strategies. With rising downtown population density and changing consumer preferences following the pandemic, discount grocers are increasingly viewing city centers as untapped markets.
Market research firm Retail Insider reports that foot traffic in downtown Ottawa has recovered to approximately 85% of pre-pandemic levels, creating favorable conditions for new retail entrants. Food Basics appears positioned to capitalize on this trend while offering price points typically 15-20% lower than conventional grocery stores.
“We’re seeing a significant shift in how consumers approach grocery shopping post-pandemic,” explains retail analyst Maria Sorvino. “Urban shoppers are making more frequent, smaller trips rather than large weekly hauls. Food Basics’ new format acknowledges this reality while bringing their discount model to an area traditionally dominated by higher-priced options.”
The store has also implemented enhanced digital features, including self-checkout options and integration with the My Food Basics app, allowing customers to access personalized deals and expedite their shopping experience.
Local community response has been largely positive. Downtown resident James Chen remarked, “Having an affordable grocery option within walking distance makes a huge difference. Downtown living comes with a premium on most things, so having Food Basics here helps balance the budget.”
Metro Inc., Food Basics’ parent company, has indicated this location will serve as a pilot for potential expansion of the urban concept to other Canadian downtown cores. Company executives are closely monitoring performance metrics and customer feedback to refine the model.
As urban demographics continue to evolve and downtown areas rebound from pandemic-related disruptions, will other discount grocers follow Food Basics’ lead in reimagining their approach to city center locations? The success of this Queen Street location may well determine the future landscape of urban grocery retail across the country.
