Struggling To Survive (1961-1971)
Reid returned to Canada and in May 1961 opened the first Giant Tiger store, with a $15,000 investment. The store was located at the corner of George Street and Dalhousie Street in Ottawa's Byward Market, in the building that had formerly housed Ottawa's French-language newspaper, Le Droit. Reid was so short of cash that he was unable to afford proper store fixtures, and had to build his own display tables. Initially, he had intended to name his store Top Value Discount, but discovered that in Canada, the "Top Value" trademark was already owned by the Loeb grocery store chain. According to Reid, he made this discovery when he spotted the name on the side of the carton from which he was pouring milk into his breakfast cereal. His second choice was "Giant Tiger", a name which had not been trademarked in Canada, although it was then being used by another of the discount chains that he had encountered in Ohio.
Reid had chosen Ottawa as the location for his first store because he believed that public service paycheques would ensure a customer base with a stable income. As well, the city still had a relatively uncompetitive retail environment, and in particular, no shopping centres. This initial choice would reflect a long-time focus on selecting locations (usually in small towns) that were sheltered from direct competition with other retailers. Reid's intention was to build a national chain, due to his belief that it was necessary to place large-volume merchandise orders in order get the best prices, which could then be passed on to consumers. However, for years it was not possible to put this strategy into effect, as Giant Tiger's expansion was initially extremely slow. In its first year, Giant Tiger’s total sales volume was only $139,781, and Reid had to rely upon his wife's income as a teacher to cover expenses. A second store was not successfully opened until 1965, and by the chain’s tenth anniversary in 1971, Giant Tiger had only expanded to six stores, and its survival rested, to a large degree, on the fact that it was servicing uncompetitive markets.
Read more about this topic: Gordon Reid (businessman), Giant Tiger
Famous quotes containing the words struggling and/or survive:
“The fundamental steps of expansion that will open a person, over time, to the full flowering of his or her individuality are the same for both genders. But men and women are rarely in the same place struggling with the same questions at the same age.”
—Gail Sheehy (20th century)
“I believe that if we are to survive as a planet, we must teach this next generation to handle their own conflicts assertively and nonviolently. If in their early years our children learn to listen to all sides of the story, use their heads and then their mouths, and come up with a plan and share, then, when they become our leaders, and some of them will, they will have the tools to handle global problems and conflict.”
—Barbara Coloroso (20th century)