Small Business in the Heart of Old Strathcona Thriving and Overcoming Challenges

Old Strathcona and Whyte Avenue are among Edmonton's most iconic, unique and diverse areas, renowned for their rich history, vibrant culture, and lively atmosphere. The district’s blend of new and established businesses reflects the area’s constant evolution, navigating the challenges and opportunities of a dynamic and evolving marketplace.

As a hub for arts, entertainment, dining, and retail, the unique combination of community spirit and the areas liveliness draws locals and visitors closer. Small businesses are the backbone of any thriving community, and in Old Strathcona, they play a crucial role in sustaining the district’s distinctive character. The synergy between business owners and the community is crucial as entrepreneurs continue to work together to foster a sense of unity amid rising costs, changing consumer habits, vandalism, and fluctuating business conditions.

John Mackell, owner of Laurel’s Flower shop and a long-time member and chair of the Old Strathcona Business Association (OSBA) representing 600 businesses in the area. Laurels Flower shop is a true staple of the district for many years and has been in operation since 1992. Laurels has established themselves strongly in longevity and stability despite a fluctuating and challenging business environment. John describes how the flower shop faced an initial decline in business at the start of the pandemic, followed by a sharp increase that lasted for about two to three years. However, he mentions that the business is now leveling out.

Mackell says that the key to surviving and thriving in this dynamic environment lies in collaboration, adaptability, and a deep understanding of both the market and community needs. "It's not just about having a business, it's about knowing how to run it, knowing your customers, and staying connected to the community around you," he says.

Old Strathcona and Whyte Avenue have been many times the focus of local news coverage such as the CBC, Global News and Edmonton Journal, to name a few, putting a spotlight on the struggles faced by small business owners in the area. The district's reputation for unique local businesses, though strong, is not without its challenges. The OSBA is responsible for cleaning, beautification and enhancing the area's public spaces. These initiatives contribute to the district’s attractiveness, helping businesses by making the area more inviting to shoppers and visitors via collective effort. "There’s already that sort of microclimate of small businesses kind of working together here in our community."

The vacancy rate in Old Strathcona in 2024 was 20.69%, which is slightly up from 2021 and 2022. While this is a slight increase John attributes it to the residual impacts of the pandemic. John sees the resurgence of businesses to the increasing number of residents in the surrounding neighborhoods. These neighborhoods have seen new housing developments, like duplexes and multi-unit condos, which have contributed to more foot traffic and demand for local services. The growth of local population density is a significant factor in the success of businesses. You can tie this into the larger trend of urban revitalization. These developments are driving economic activity in the area, and how businesses in Old Strathcona are benefitting from this increase in local residents.

John notes that the pandemic shifted many customers’ habits to online shopping, and this continues even post-pandemic. As a result, businesses like Laurels Flower Shop have had to adapt their strategies to increase their online presence. The pandemic had a profound effect on consumer habits, shifting many people toward online shopping. Mackell’s Laurels Flower Shop, like many others, has had to adapt by enhancing its online presence to meet changing customer expectations.

Changes in the retail landscape, such as the closure of large chains like Starbucks and The Bay, reflect broader changes in shopping habits. Small businesses must adapt to these shifts to remain competitive, focusing on customer experiences and online platforms.

Programs like the University of Alberta’s Digital Economy Program are helping small businesses in the Edmonton area transition to the digital economy. This could be used to highlight how some businesses are adapting and thriving, even in challenging circumstances, by embracing technology.

Though economic pressures are a major concern, social disorder especially homelessness and vandalism also pose a significant challenge for some businesses in the area. The interviewee emphasizes that societal factors such as unemployment and systemic issues contribute to these concerns, and while small business owners can help by directing individuals to social programs they can't solve the problem on their own.

The importance of community engagement and collaboration among small businesses is emphasized. Festivals and community events contribute to the vibrancy of the Old Strathcona area. The future of the Old Strathcona area highlighting the importance of clean, safe, and attractive spaces to ensure long-term vibrancy. "I think it's the synergy of all the small businesses together here working as a unit that really bring that vibrancy and that growth."

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