Downtown Lethbridge, file photo. (Image: Lethbridge News Now)

By David Opinko

Lethbridge moving away from sit-down restaurants, e-commerce growing: Report

Oct 5, 2022 | 1:22 PM

LETHBRIDGE, AB – A new report from Avison Young is highlighting recent changes to Lethbridge’s retail sector.

They used data from Statistics Canada and Economic Development Lethbridge (EDL) to provide insights for the Lethbridge Retail Market Report for October 2022.

The report shows that the business sector overall in the city is recovering from a drastic decline at the start of the COVID-19 pandemic in 2020.

In 2019, there were 4,253 total licensed businesses in Lethbridge. That number fell by 464, or 11%, in 2020 to 3,789.

An additional 54 businesses were in operation as of 2021, marking a comparable level of growth to the last few pre-pandemic years.

Week-in-review: A spring storm, Whoop-Up Days entertainment and housing for seniors

May 11, 2024

What's Happening in Lethbridge this weekend: May 10, 2024

May 10, 2024

Week-in-review: Passenger rail, a big investment in Coaldale and an NFL draftee from Lethbridge

May 04, 2024

The makeup of the commercial sector, however, is changing.

Avison Young Associate Shane Garner says restaurant owners are shifting away from traditional sit-down dining models.

“In the first full year following the onset of COVID-19 quick-service outlets have fared far better than competitors,” says Garner. “One could argue that quick service food concepts have become one of the hottest retail growth areas in 2022.”

New quick-service restaurants (QSR) have decreased in physical size by 10-20% with many concepts eliminating most or all of their seating capacity. Many newer establishments have 10 or fewer seats.

Many larger restaurant and QSR chains are seeing smaller, “secondary markets” as opportunities for growth.

The food service industry as a whole is reportedly moving towards digital/mobile orders, drive-thrus, pickup windows, and curbside pickup.

This change, called “retail omni-channeling,” sees businesses integrate physical and online shopping experiences.

Avison Young Executive Vice President Jeremy Roden says, “All retail has expanded their online offerings as a necessity.”

Since the onset of the pandemic, the report notes that wellness and outpatient service providers have experienced growth in Lethbridge.

Avison Young explains that the federal health system was strained throughout the pandemic, resulting in people turning to health-related services.

Another trend that was noted in the report was a move to more mixed-use developments with new areas incorporating a mixture of commercial businesses and residential offerings.

In the second phase of the Crossings complex on the west side, for example, the report’s authors say the original plan was to have it consist mostly of businesses. It now plans to have multi-use residential, religious institutions, storage facilities, educational services, and hospitality.

You can see the full Lethbridge Retail Market Report for October 2022 on the Avison Young website.

READ MORE: Lethbridge News Now