Knob Hill Farms
Steve Stavro, founder of Knob Hill Farms, was a serial innovator and one of the early adopters of the concept of a big box retailer. Knob Hill Farms bought in very large volumes to secure maximum discounts from brokers, wholesalers and farm co-operatives. Knob Hill Farms advertised heavily in Toronto area newspapers and customers flocked to the stores for prices, wide selection and the unique experience. The decision to purchase stock in bulk necessitated the construction of "food terminals" that were significantly larger than any competitors at the time. Over the years Knob Hill Farms would construct the largest grocery store in Ontario, then Canada, followed by North America and finally the world with the construction of Knob Hill Farms' Cambridge terminal in 1991.[3] Knob Hill Farms' stores were located close to major transportation arteries for the delivery of bulk goods (and the convenience of the driving public) and many of the stores were serviced directly by railway spur lines (and one directly accessed the Port of Toronto on Lake Ontario).
As a result of Knob Hill Farms large individual store sales volumes and the frequent occurrence of customers leaving with bulky orders, Knob Hill Farms adopted a company-wide policy of providing their customers first with large, re-usable, cardboard boxes (for five cents each) and then with sturdy, re-usable plastic baskets, to take their groceries home. These baskets held significantly more than any paper or plastic grocery bags. This initiative represented one of the first examples of a retailer abandoning plastic and paper bags in favour of a reusable and environmentally friendly alternative.[8]
Stavro brought a focus to purchasing from local farms, where seasonally appropriate, both to decrease transportation costs and to support local business.[8] In addition to purchasing local products, Knob Hill Farms developed relationships with brokers, wholesalers and suppliers around the world to cater to Toronto's rapidly growing multicultural immigrant communities. Knob Hill Farms was especially notable for its large selection of Continental European, South Asian and Caribbean products.
Stavro opened his first food terminal in December 1963 (a 65,000 square foot (6,000 square metre) store). It was located just north of Toronto at Woodbine Avenue and Highway 7 in Markham, Ontario. (At the time of its opening, the Markham location was Canada's biggest grocery store.)[8]
Eight years later, on August 4, 1971, Stavro opened a second terminal in Pickering, Ontario – immediately to the east of Toronto. With each store opening it became customary for Stavro to hold events for large industry groups, including brokers, wholesales and manufacturers. This store opening was also noteworthy for the arrival of Sam Walton, founder of Walmart and Sam's Club, who drove in from New York to meet with Steve Stavro. Following the Pickering terminal Stavro opened his third terminal, the first in Toronto, on September 3, 1975. The terminal was located at Lansdowne Avenue and Dundas Street West, on a site previously occupied by a National Cash Register plant. A second Toronto terminal opened on February 2, 1977, at Cherry Street and the Gardiner Expressway.
The fifth store, billed as the largest food store in North America, opened November 1, 1978 at Dixie Road and the Queen Elizabeth Way in Mississauga – immediately to the west of Toronto. This was the first store in the chain to sell some non-food products and was initially two stories tall. The second storey was later closed to customers and used for storage. A restaurant, drug store, and wine shop all rented space within the building.
On June 29, 1983, Knob Hill Farms opened a location in Oshawa, Ontario in the former Ontario Malleable Iron Company Limited's factory. The building had been used as an iron foundry since 1898, although the company had operated at that site since 1872. The 226,000 square foot (21,000 square metre) building had railway spurs for both Canadian Pacific and Canadian National Railway lines running right to the store. A pharmacy, bakery, dentist's office, video rental store, wine store, and a card shop were among the other businesses initially located within the terminal.[9] The Ontario Municipal Board and the Ontario government approved a 12-acre (5 ha) site in 1982 for the seventh Knob Hill Farms terminal, this one at Weston Road and Highway 401 in the Weston community of Toronto. For this opening a team of executives from The Kroger Company, the largest supermarket chain in the US, flew in on a company jet for the opening. The site was previously an industrial building dating back to the 1930s and was used for the assembly of airplanes (de Havilland Mosquitos) by Massey Harris during World War II. The 325,000 square foot (30,200 square metre) store opened May 14, 1986. Features of the supermarket included a man-made waterfall, rides for children and a variety of shops. The store also featured John Richmond's 1,300 foot (400 metre) mural depicting the history of food from Prometheus to Marc Garneau.[10]
In 1984 Knob Hill Farms purchased 1900 Eglinton Ave. East from General Electric on the closing of its factory. The plan was to construct a new food terminal catering to the Scarborough community. This plan, however, was opposed by some members of the local community and led by the area alderman, a real estate broker, who felt the terminal would be "too disruptive to the existing fabric of development".[11] In 1987 the application for development was formally turned down. The denial came as somewhat of a surprise forcing Knob Hill Farms to pivot its strategy for the location, turning it into a wholesale retailer on the north side of the building and the south side of the building became Knob Hill Farms' head office.
On August 21, 1991, Knob Hill Farms opened a terminal in Cambridge Ontario, the first outside the Greater Toronto Area. The terminal measured 340,000 square feet (31,500 square metres), making it the largest food retail store in the world. It was estimated that the terminal saw over 20,000 customers on opening day with hour long lines and traffic jams surrounding the store.[12] The Store featured 5,250 feet (1,600 metres) of refrigeration units, a 500-foot (150 metre) meat counter and 1,500 parking spaces.[12] An interesting facet of the terminal also was the partnership with the local Mennonite community. 8,000 square feet (750 square metres) of the store was devoted to the sale of homemade Mennonite furniture and fabric, while the parking lot featured a five buggy hitching post to accommodate the Mennonites' horse and buggy travel.[12]
The final Knob Hill terminal, the Riverdale Terminal, opened in 1992. The terminal was located at the Carlaw and Gerrard intersection in Toronto.
In August 2000, Stavro announced that all stores would close. At the time, the company had about 800 employees at 10 locations.[13] Knob Hill Farms had lost market share to new competitors, including Walmart and Costco and existing competitors such as Loblaws. In addition, Knob Hill Farms had incurred significant debts. The final store — the Weston site — closed in February 2001 and Stavro ensured that all debts were repaid in full, including termination payments to all employees.
