By Marc Aubin
Lowertown has been the place where many successful companies got their start. For example, while Pure Spring Ginger Ale is associated with the West End, it was in Lowertown, that the company got its start as a bottle recycling venture. Similar examples abound, including one of the most successful discount store chains in Canada, Giant Tiger.
Gordon Reid, founder of Giant Tiger, was born in Vancouver in 1933, and grew up in Montreal. At the age of 13, he started his retail career working in the warehouse for the Robert Simpson Company (later Simpsons Sears). Reid worked his way up through the retail industry. He saw discount stores in the United States for the first time in the late 1950s when he was a traveling salesman selling imported fishing tackle and sporting goods. This was a new business model that had not yet reached Canada.
Reid quickly capitalized on the idea and opened his first discount store in 1961 in the former headquarters of Le Droit newspaper at 98 George Street. He chose Ottawa due to its relatively uncompetitive retail market and dependable public-service cheques. His initial investment was $15,000, and the first year’s revenues were $139,781.
The second store opened in 1965; in 1968 the company adopted a franchising model to encourage expansion and by 1971, there were six stores in the chain. This was considered a slow expansion at the time compared to other discount chains, but Giant Tiger was focused on carefully developing its franchisees. It often gives franchises to long-timer employees who have earned them.
Competition grew fierce as the number of U.S. discount stores flooded into Canada. The number of discount chains grew from 10 chains in 1985 to 185 in 2003. Store location was a major factor in Giant Tiger’s success. The early strategy had been to situate its stores in secondary markets where there was less competition from big box stores. How many Walmarts are within walking distance in Lowertown?
That strategy has shifted over time with more factors now included in the decision of where to locate stores. Canadian retail expert, Bruce Winder, describes Giant Tiger as being between a Dollarama and Wal-Mart in terms of its offerings.
Giant Tiger celebrated its 50th anniversary in 2011. Today, there are 245 Giant Tiger stores across Canada employing 8,000 people, and 4 more stores are set to open this year. The headquarters is now located at 2480 Walkley Road in Ottawa. Gordon Reid is still actively involved in the company and its mission to deliver outstanding value to Canadian families every day.