More than a marriage of convenience

Meet KaleMart24: a self-serve health food convenience store that’s turning the traditional c-store model on its head

By Danny Kucharsky

are becoming more conscious about their health. Millennials desire a higher quality food experience with a unique narrative and authentic global flavours. KaleMart24 is geared towards those grabbing a fresh lunch or snack in time to make it back to the office or to class.

You’ve said you’re trying to become “the Whole Foods of convenience stores.” How will you achieve this?

Raising The Bar

CALGARY CO-OP has developed bars of soap made from carbon captured from its head office and converted into mineral form.

KALEMART24 wants you to forget what you know about the traditional convenience store model. Soon to launch in Montreal as a better-for-you, self-serve c-store with healthier choices like organic and plant-based foods, KaleMart24 hopes to attract convenience-minded millennials. CEO and director Oussama (Sam) Saoudi outlined the concept to Canadian Grocer and shared the company’s expansion plans. This interview has been edited for length and clarity.

Why choose the better-for-you c-store model?

I love on-the-go options and we millennials are the ones driving the trend for increased visits to c-stores and graband-go stores. We make frequent trips to grab-and-go stores to get the food we need for the same day or the next couple days. We are becoming more conscious about our health; however, the natural food and beverage options in c-stores are currently very limited or inexistent.

What consumer insights are driving the concept?

Sales in the organic food and beverage sector grew by 7.1% in 2022. Organic sales are increasing because consumers

With a nutritionist on our team, we will look for the best natural and organic foods available, maintain the highest quality standards in the industry, and have a strict commitment to sustainable food. Our secret to winning involves a balance of brand consistency, customer appreciation, innovative assortment, and ease of experience. KaleMart24 is deeply entrenched in local communities, giving customers the opportunity to support local suppliers.

What is unique about the store design compared to other c-stores?

The stores will have a modern, upscale look, while still maintaining an earthy, market-like atmosphere. Expect all the usual [convenience] categories, but with specialty brands and products in addition to personal care items and even organic pet food. Plus, you can check out with or without the help of an associate [the store leverages tech such as self-checkout and mobile payments]. There will also be a large, ready-to-eat section with warm or fresh nutritious meals made daily.

What are your expansion plans and financial projections?

By establishing a strong national brand awareness in major cities, KaleMart24 hopes to expand to five stores in its first year and grow to 30 stores by 2025. By year three, we’re projecting revenues of $55 million and profits of $6 million. CG

The all-natural, biodegradable soap hit shelves across Calgary Co-op’s 23 stores in January. It comes in six scents: spearmint, vanilla chai, sweet and spicy lemongrass, coffee honey, activated charcoal and shea butter. It is likely the first of several carbon-captured products to be released by Co-op’s private-label brand Cal & Gary. The label launched in 2000 and now boasts more than 600 products.

To make the soap, the co-op uses a device from Calgary-based CleanO2 that pulls in carbon dioxide from the building’s heating systems that are normally emitted into the air. The captured CO2 is converted into pure pearl ash (potassium carbonate) and then harvested from the unit (which is about the size of two refrigerators) and transferred to a manufacturing facility.

Chris Gruber, managing director, head of private brands at Calgary Co-op estimates the unit’s impact on removing CO2 emissions from Co-op’s head office per year is the equivalent of planting more than 300 trees.

The soap comes in recyclable packaging branded with the slogan “Friendly Soap for Friendly People,” and is sold in the “natural store” department of Co-op’s supermarkets. —Chris Daniels