The Bay, Toys ‘R’ Us vacancies raising questions about Saskatoon’s downtown retail

It's been one year since Hudson's Bay closed its doors at Midtown, and just steps away, Toy 'R' Us is also vacating a massive downtown space.

It’s been one year since Hudson’s Bay closed its doors at Midtown Plaza, leaving behind a large empty space in the heart of downtown Saskatoon. Now, another major retail vacancy has appeared just steps away, with Toys “R” Us recently closing its downtown location.

The two prominent empty storefronts have sparked questions about the future of retail in Saskatoon’s downtown core, with some residents concerned about the impact on shopping and foot traffic.

“It’s a big void,” shopper Susan Smiley told CTV News. “Eaton’s left. Now The Bay left. Sears left. What do you put into these spaces?”

Others say anchor tenants play a critical role in attracting shoppers.

“Having a big anchor tenant is really important, I think, to the business plan. Hopefully something comes back soon,” resident Brandon Harris said.

Some shoppers also expressed disappointment at seeing the spaces remain vacant.

“It’s a wasted space if nobody’s doing anything. But I do miss The Bay,” nearby resident Joyce Franko said.

Despite the concerns, downtown business leaders say the closures have not had the negative impact many feared.

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Shawna Nelson, executive director of the Downtown Saskatoon Business Improvement District, says she has been speaking regularly with businesses both inside Midtown Plaza and throughout the downtown core.

“Traffic is still there and the retail spend is still there, if not better. I feel that the Bay leaving hasn’t really impacted things like some thought that it would.”

Nelson said while global economic uncertainty continues to influence consumer spending habits, downtown retailers are still seeing strong support from shoppers. Additionally, marketing around buying local has seen success.

Nelson added she believes there is opportunity in the vacant properties.

“With The Bay not being there, as well as Toys ‘R’ Us, there is some great opportunity for some big investment to happen,” she said.

However, filling the large anchor spaces may take time, retail experts warn.

David Williams, an associate professor of marketing at the University of Saskatchewan’s Edwards School of Business, says downtown Saskatoon is unlikely to attract large format retailers that typically require extensive parking and suburban-style development.

“You’re not going to get Home Depot or Costco downtown because of parking. They’re probably going to subdivide the space or find an alternative use,” Williams said.

The marketing expert believes the retail landscape is changing across Canada, with fewer traditional department stores and more specialized retailers.

“Get used to no department stores. That’s a sign of the times. It’s going to be more specialized retail,” Williams added.

Residents have their own ideas about what could move into the vacant locations.

“[The downtown] obviously can always use a grocery store in some way, shape or form,” Harris added.

Shopper Jamie Smith, who was visiting Saskatoon from southern Saskatchewan, suggested a more social-service-oriented approach.

“How about an urgent care unit and a unit for people to sleep that don’t have anywhere to sleep?”

CTV News contacted Midtown Mall for comment on the future of the former Bay space, but in an email, the mall declined an interview.

For now, two of downtown Saskatoon’s most visible retail locations remain empty, while business leaders, retailers and residents wait to see what comes next.