A Handshake Deal: How Mitchell Goldhar helped bring Walmart to Canada
Source: SmartCentres Blog
True vision is created by experience. It evolves complexly and is executed through a series of small steps and decisions made over time– not in one fell swoop.
It’s this philosophy of vision and resilience that led SmartCentres REIT’s Founder, Executive Chairman and CEO Mitchell (“Mitch”) Goldhar to become one of Canada’s most successful entrepreneurs. Ultimately his vision, paired with a little help from our friends at Walmart, helped him bring value-oriented retail to all Canadians.
Mitch’s vision has always been deeply rooted in a commitment to do right by Canadians. “I was fighting for the average Canadian,” Mitch explains. “I was an average Canadian. I wanted to build retail centres with the realities of the average income and average household in mind; with likeminded retailers.”
Flashback to the 80s: Big Hair, Bigger Prices
It was the mid-80s and the prices of basics were on the rise. Sure, inflation happens, economic changes happen, but Mitch felt it was wrong…. He knew it was wrong. He knew he needed to help facilitate change for the average Canadian family. He knew it was time to usher in a wave of value and convenience. Canadians deserved better.
So, how exactly did a young, 20-something Mitch Goldhar convince one of the biggest retailers in the world that he could, and should support their entry to Canada? It’s become one of the most mysterious and rumoured stories in Canadian real estate development folklore. Among Mitch’s favourite rumours is that he pitched a tent in front of the Walmart Head Office in Bentonville, Arkansas and refused to leave until Walmart’s founder Sam Walton, spoke to him.
While this wild rumour certainly speaks to Mitch’s tenacity, that isn’t *exactly* how it happened.
The Truth: Walmart’s Market Entry
In 1989, Mitch had a “Future Shopping Centre” billboard on an empty piece of land in Markham, Ontario. A man by the name of Doug Sperber saw the sign and called Mitch’s number to enquire. What he didn’t know was that Mr. Sperber was an executive on a secret reconnaissance mission to scout potential new locations for his American employer: Walmart.
“We met in my office. He didn’t tell me his name or what company he represented. He listened to me rant about how Canadians were getting ripped off and how prices were too high,” recalled Mitch. “He listened and seemed to understand and agree. When he left, I was sure I would never hear from him again.”
Two months later, Mitch was surprised to hear from Doug Sperber once again. Even more surprising was when Sperber revealed who he was and what exactly he was doing those months ago when he called the number on the “Future Shopping Centre” billboard.
Meet Me in St Louis:
Mr. Sperber suggested that they meet halfway in St. Louis – one direct flight from Arkansas and one direct flight from Toronto – an early testament to Walmart’s thoughtful, fair, and equitable approach to our partnership.
Mitch was off to meet Mr. Sperber, where in a windowless boardroom in the St. Louis airport, they shook hands and began SmartCentres’ 30+ year partnership with Walmart. This handshake deal formalized Mitch’s role in helping bring one of the world’s largest and best-known retailers to Canada.
No paperwork… no signatures… a handshake.
It may not be as epic or heroic as pitching a tent in Bentonville, Arkansas, but Mitchell Goldhar had a vision and one that Walmart shared: Something better, something more for the average Canadian family. That vision continues to be one of SmartCentres’ guiding principles today. It is even written on the wall of our home office: “Take care of Canadians, and they will take care of you.”