Fredericton supermarket closing after 2 decades in business on Sitansisk First Nation

St. Mary's Supermarket, which opened in 2003 on Sitansisk First Nation in Fredericton, will close by the end of June.

Two Nations One Stop, a gas bar and convenience store on Howe Street, will upgrade to offersome of theproducts carried by the supermarket, including meat and produce, but on a much smaller scale.

"I'm devastated," said Chief Allan Polchies Jr. in an interview on Information Morning Fredericton.

"Myself, the board, the council. This was not a very light decision to make."

A combination of factors led to the decision to close the Cliffe Street supermarket.

He said Canada's challenging grocery system, controlled by five large corporations, has made it difficult for the supermarket to establish buying power and access basic items.

And he says itdoesn't help that there's already a Walmart close to Sitansiskand a No Frills coming to the area soon.

Polchies said news of No Frills opening so close to Sitansiskwas partthe decision to close the supermarket.

"We can't compete with those folks."

Consumers have been stoppingto buy one or two items, saving their big grocery hauls for other stores, and the supermarket hasn't been turning profit for a long time, Polchies said.

But because Sitansisk previously had a tax-revenue sharing agreement with the province, the First Nation could absorb the deficit.

The Higgs government ended that agreement in January 2023. Now, Sitansisk is losing $125,000a month, he said.

"[That's] a lot of cash that's being lost on premium grocery items."

If the supermarket's 50 employees can't find work at other retail locations on Sitansisk by the time the store closes on June 30, they'll receive severance pay, according to a newsrelease about the closure.

There will be 17 jobs available at Two Stop, but all current supermarket employees will have to reapply to ensure a fair process, Polchies said. In the meantime, there will be resum writing workshops and other support available.

The remaining Sitansisk retail businesses, which include a gas bar and the Wolastoq Wharf restaurant,remain cash-flow positive, the news release said.

There are no concrete plans yet for the supermarket building.

"This chapter will close. A new one will begin for our community," said Polchies.