Rising Rent May Force Decades-Old Halifax Grocery Store To Close
HALIFAX — Rising rent has been an issue top of mind for Maritimers since early in the pandemic. Most of the conversation has centered around residential rent increases, but small businesses are facing higher prices from their commercial landlords as well.
And unlike residential renters, businesses in New Brunswick and Nova Scotia aren’t protected by any rent controls.
Abdulsalam Mohammad has owned Mid-East Food Centre & Café on Halifax’s Agricola Street since 2008. In total, the grocery store has existed for nearly 50 years. But now the store may close for good because Mohammad is facing a rent increase of $1,000-$2,000 per month. He is currently paying $4,500 per month plus taxes.
“I can’t make it, because in the grocery market, you don’t make that much. Plus the shipping costs, utilities, and operation costs are up a lot,” said Mohammad.
“This is a problem for not just me. Small businesses, when they raise the rent, we will struggle, because we can’t make it.”
Mohammad’s lease is up in September, so he is trying to find a new location for Mid-East before then. He has found two possible locations for the move. But, if he doesn’t find a place located in Halifax’s North End, he will simply close the shop and retire – which he doesn’t want to do.
“Business has been stable for a long time. But what I enjoy is the connection with the neighbourhood, socially, and I’m happy here.”
“I thank everyone who supported me and all the customers who stopped by and said, ‘we’ll miss you.’ But I promise I’ll try to relocate nearby in the North End. If I don’t find it, I’ll close forever.”
“Retirement is not a good thing, but sometimes the nature of things goes against you.”
Mohammad fell in love with Halifax years ago after visiting from Vancouver. He saw an opportunity to move here when he bought Mid-East in 2008. His wife and his daughter help run his family business.
“I just visited from Vancouver and I like Halifax. And I said, ‘why not?’ So I moved here and it was an opportunity for me to try it, and I bought the store.”
Like many small business owners, Mohammad is facing the pressures of inflation, on top of rent increases. Mid-East gets much of its products from Ontario and Quebec. His shipping costs, due to the insane prices of oil and gas, have doubled recently.
Mohammad has had to increase prices on his end but says he tried to keep those increases as reasonable as possible.
Derek Montague is a Huddle reporter in Halifax. Send him your feedback and story ideas: [email protected].