Why do I keep reading about how "cash strapped" we all are around here? I'm financially secure, there is a house for sale on Spring Gardens for $2.5 million and I don't see all these poor people. What am I missing?


I'm going to have to agree with Suiseiseki on this one.

Yes,... in North York City Centre,... while an old bungalow in a decent size lot will cost about $1 million,... and a McMansion will cost closer to $2 million. And condos go for about $300-500 per square foot.

And that's exactly what the census report,.... including how many people in the area, type of residence, income level, age, people per household, etc,... and that's exactly the raw data the supermarket chain uses to decide where to place their supermarkets and what type of supermarket,... for which price points.

But what they do not focus on,... is disposable income.

You see,... there have been 50 new condo towers built in North York City Centre (along Yonge between Doris and Beecroft from Hwy 401 to Cummer-Drewry) in the last 15 years since amalgamation in 1997,... that averages to 1 new condo tower every 3-4 months,.... half the people in Toronto live in Condos,.. and in this area, with so many condos, we have more people living in Condos than houses. Seriously, consider your basic 30 storey condo have about 500 residents,.... an entire street like Poyntz with about 150 houses would have about 500 people,... and how many streets like Poyntz doe we have compared to how many condos!

Anyway,... very few condo buyers buy a new condo with all cash! Most condo buyers tend to be young. They usually need a mortgage,... and most people take about 15 years to pay off a mortgage,... so many of these condo units are not paid off yet. Thus many of the condo owners,... are in fact, "house poor": they`re relatively broke after purchasing the condo due to the mortgage payments and other related expenses,... even though their personal asset maybe increasing from owning a property,... their monthly disposable income (liquid asset) are usually fairly tight.

Then add in car payments,... fancy car payments,.. some of these young folks like spending money they don`t have to impress people they don`t know!

And then there are the condo renters who rent a condo from a condo investor,... these condo renters usually don`t have enough asset or income to qualify to buy their own condo,... thus they rent.

As for the area house owners,.. how many home-buyers buy a $1 million to $2 million house with all cash,.... there is usually a mortgage involved.

In addition, many of the older homes are still owned by older folks,... like seniors on fixed income pensions who are "house rich but cash poor",.... Cash Strapped!

If this area was full of people with high disposable income,... high end malls like BayviewVillage would be packed,... but it`s not!

Just because the area has properties higher than the GTA average doesn't mean the area is rich,... don't compare this area to Rosedale, ForestHill or Yorkville. Those rich areas don't have Dollarama stores,... areas that have Dollarama stores are poor area,.. err, I mean,... area with lower monthly disposible income (ie "Cash Strapped"). Case in point, the Dollarama in Sheppard Centre opened about 3 years ago,... and Dollarama is one of the busiest stores in SheppardCentre. A much larger Dollarama opened in EmpressWalk last year,.... and its now quite busy as well. These two Dollarama stores (SheppardCentre & EmpressWalk) are only 1km away from each other,... probably the shortest distance between two Dollarama stores anywhere!

Yeah,... we need a Walmart in SheppardCentre! Walmart is great for "Cash Strapped" people!
 
Last edited:
Tonight, Aug 13th:

xw1l.jpg
 
Now lets keep in mind Metro holds the #1 share in Quebec and #2 in Ontario. The consistently show stable profit growth and sales growth. They are known to have the most well equipped Management in the business and are the most likely to succeed in this highly competitive market.
Their new stores are superior to Loblaw and Sobey. Those are facts so the question now is what will this new format offer? My guess is a mixture of the best of all Chains. Remember the previous Metro was an old outdated A&P and just received a minor facelift and sign change upon purchase. No investment as the lease was near the end. The new store will likely exceed everyone's expectations. Time will tell but keep in mind when these guys launch something it rarely fails. They know what their doing and how to execute. Most investors look to Metro for a reason. They are most compared to Publix in the states for performance.
When this new format launches it will be swift and well executed.
I really believe they are the right choice location and all.

I agree with everything sunnyray says about T&T. They are better suited to serve the demographics of the area, much better than Metro.

If Emerald Park is the right choice and location for Metro, then why was Emerald Park's first pick to go with T&T? T&T only backed out because construction was falling way behind schedule. The decision to go with Metro was not their first choice.

The Empress Walk Dollarama recently closed. Not enough business.

Are you talking about the new Dollarama on the second floor, or the old dollar store on the lower level near the subway (Your Dollar Store With More)?

The dollar store on the lower level did indeed close, but a larger Dollarama opened on the second floor a few months ago (replacing Fabricland) and was still open when I passed by last week.
 
Last edited:
vz64: stunning night shots as always! These towers are going to be so narrow!
 
Now lets keep in mind Metro holds the #1 share in Quebec and #2 in Ontario. The consistently show stable profit growth and sales growth. They are known to have the most well equipped Management in the business and are the most likely to succeed in this highly competitive market.
Their new stores are superior to Loblaw and Sobey. Those are facts so the question now is what will this new format offer? My guess is a mixture of the best of all Chains. Remember the previous Metro was an old outdated A&P and just received a minor facelift and sign change upon purchase. No investment as the lease was near the end. The new store will likely exceed everyone's expectations. Time will tell but keep in mind when these guys launch something it rarely fails. They know what their doing and how to execute. Most investors look to Metro for a reason. They are most compared to Publix in the states for performance.
When this new format launches it will be swift and well executed.
I really believe they are the right choice location and all.

And in the news today, Metro announced it is closing down 15 stores.

http://www.thestar.com/business/201...rio_stores_convert_others_to_food_basics.html
 
I agree with everything sunnyray says about T&T. They are better suited to serve the demographics of the area, much better than Metro.
If Emerald Park is the right choice and location for Metro, then why was Emerald Park's first pick to go with T&T? T&T only backed out because construction was falling way behind schedule. The decision to go with Metro was not their first choice.

T&T may have better product selection for Asian cuisine than Metro, but that's not the point, and really this angst is misdirected. The 2nd Floor of Emerald Park is just another condo being sold to the highest bidder. I'm sure the developer doesn't really care who buys it. Maybe some "pacific mall" type stores on the 1st level "got screwed" if they believed T&T was on the 2nd floor, but there's no evidence of this.

So the real question is if this market was going to be a GOLD MINE for T&T, then why did they give it up? Just for construction delays? That doesn't add up.

I completely reject the notion of this area being majority cash-strapped. Whole Foods / Loblaws / Metro / Starbucks aren't stupid. Bayview Village is a top performing mall in the country in sales/SF and is in a position to land high-end retailers and part of its appeal is because it isn't a zoo. Seems to me there's enough well off people to support all these places.
 
vz64: stunning night shots as always! These towers are going to be so narrow!

Thanks sMT! Indeed, the towers will be razor-thin and, if cladding is good, will create quite a gateway to the NYCC (along with Hullmark Centre)!. The east tower crane will be re-located some time soon as now it is outside of the building's envelop. Re sunnyray comments--I think he is right that the better choice, considering area demographics, would be T&T, but I think the Metro will not be as underused as the one that was in the older plaza. I guess many customers will be local from EP and HC (and some other condos that were not there when Metro was still open). Anyway, we are all just speculating; let's see how it turns out in a couple of years...
 
My bad! I did not know about the new larger Dollarmara at Princess Mall. I guess we are all "cash poor" after all.
 
Right on schedule. The restructuring I spoke of. Only 1 or 2 stores to close. 6 to Food Basics and the others converted to a lower wage contract as permitted by current labour agreements. They also announced an increase in Ontario Cap spending. The Eglinton/Lloyd Manor store is where they will take the Metro's. Earnings on Par as per usual. This is a restructuring of Ontario which is needed as the A&P format has been in place since the purchase. Changes are coming soon now. The Emerald Park Metro will be the best store in the area when it opens. You will get to see first hand why Metro is the choice of Investors. Keep the faith!
 
Now lets keep in mind Metro holds the #1 share in Quebec and #2 in Ontario. The consistently show stable profit growth and sales growth. They are known to have the most well equipped Management in the business and are the most likely to succeed in this highly competitive market.
Their new stores are superior to Loblaw and Sobey. Those are facts so the question now is what will this new format offer? My guess is a mixture of the best of all Chains. Remember the previous Metro was an old outdated A&P and just received a minor facelift and sign change upon purchase. No investment as the lease was near the end. The new store will likely exceed everyone's expectations. Time will tell but keep in mind when these guys launch something it rarely fails. They know what their doing and how to execute. Most investors look to Metro for a reason. They are most compared to Publix in the states for performance.
When this new format launches it will be swift and well executed.
I really believe they are the right choice location and all.

Ok, we all get it that you are proud to be working at metro, even though some of us wouldn't be. But nothing of what you said above is a fact other then them having the biggest market share in Quebec (which is only normal considering they are the only big Quebec player).
 
Lol. I don't work for them or anyone else in the business. Simply an investor and they have fantastic return compared to Loblaw. I really respect the Management and did much research before making a commitment. I guess you might say I put my money where my mouth is. They have only been in Ontario for 8 years and have accomplished plenty. See earnings. Just be patient and they will impress you more than any other competitor!
 

Back
Top