From niche grocer to supermarket giant: How T&T plans to repeat success in the U.S.

Shoppers visit in Toronto's Fairview Mall as outlets participate in Black Friday sales, Nov. 28, 2024. THE CANADIAN PRESS/Chris Young

Canada's biggest Asian grocery chain is expanding into the U.S., hoping to bring its patented array of food, skin care and more to a new market.

On Thursday, Bellevue, Wash., will be home to T&T's 37th store, and its first south of the border as it looks ahead to more growth in Canada and the U.S.

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"It's a natural expansion for us," said CEO Tina Lee in an interview at the T&T store in Toronto's Fairview Mall.

Amid the current climate of distrust and frustration over food prices that many Canadian grocers are weathering, T&T seems to be enjoying a strong and dedicated customer base. Shoppers post hauls of their products on TikTok and line up around the block to visit new locations. At the Fairview store, Lee points out a whole fried chicken in the hot food section that she says went viral online, and as she's standing in the bakery aisle, two young shoppers recognize her and ask for a photo.

"We can feel (that) Canadians are cheering for us, just like you cheer for the Canadians at the Olympics," said Lee.

It's Lee's 10th year as CEO of the company her mother founded more than three decades ago.

The T&T brand began in 1993, when Tina's mother Cindy, with the help of her husband Jack, opened two stores in Burnaby and Richmond, B.C.

Tina and her sister Tiffany -- who is coming up from Los Angeles for the Bellevue opening -- make up the two Ts in the store name.

Lee said it's been clear for several years that T&T had a good chance of making it in the U.S. Though many Canadians travel south to snap up popular products they can't get here at places like Trader Joe's and Target, the company was noticing a slew of American licence plates in its own parking lots.

Usually it's U.S. retailers that expand into Canada, not the other way around, said Lisa Hutcheson, a retail strategist with J.C. Williams Group.

"When you have a winning concept and there is a demand for it in another market, that's when it's time," she said.

Aritzia and Lululemon are good examples of Canadian companies that have successfully expanded south of the border, said Hutcheson.

T&T has seen a lot of growth in just a few years, said Lee. Being part of Loblaw -- which bought the retailer in 2009 -- has helped support that growth through capital and distribution, she said.

Bringing a winning retail concept to another country isn't always easy. Just ask Target, which launched more than a hundred stores across Canada about a decade ago before spectacularly flaming out within just a couple of years.

But Lee isn't worried about whether the business model will do well in the U.S. and is anticipating a warm welcome from American customers.

In fact, Lee said she thinks opening T&T stores in Quebec was a bigger challenge from a cultural standpoint. T&T opened its first Quebec location in 2022 in Montreal, and its second just last month in nearby Brossard.

"That's given me and given us a lot more confidence in saying, 'Well, look, if we can make it in Quebec ... then yes, we can make it in Seattle."'

While she may not be intimidated by the expansion, there's certainly a lot of work involved, including detailed market research, changing labelling to meet nutritional and language requirements, adapting HR policies and other technical details.

After customer research including focus groups in Bellevue, careful site selection -- a 76,000-square-foot former Walmart, the biggest T&T yet -- plus mass hiring and months of training in B.C. for soon-to-be managers and supervisors, "we're very excited about it. I think the community is really excited about it."

Though the Bellevue store is a big milestone for T&T, the company isn't taking a breather. It's opening its 38th store in the spring, to be located in downtown Toronto. A second Washington state location is on the way, and its third U.S. location will be in San Jose, Calif.

The company hadn't anticipated opening so many stores so quickly, but Lee said they had to take the good real estate opportunities that came up.

"The location is with you for decades," she said.

The company has distribution partners set up along the west coast, with a lot of its products already coming up from California.

Hutcheson said she thinks T&T's move makes "logical sense," depending on the areas it picks, adding that while the banner still has room to grow in Canada, "the U.S. is just that much bigger."

"It appears that they've been strategic in terms of their rollout and how they grow, and it just seems like this is a next evolution," Hutcheson said.

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The company's widespread success story shows that stores like T&T aren't just for certain communities anymore, said Lee.

Research has shown that North American consumers are increasingly interested in eating and cooking food from a variety of different cultures. According to research firm Mintel, Gen Z consumers are driving consumption of international food and drink both at restaurants and at home, often turning to social media for cooking inspiration.

"I think certainly my mother would have never imagined it, but we've grown beyond just an Asian clientele," Lee said.

"We're appealing to a much broader range of customers."

Lee said younger generations in particular are much more interested in cooking and eating food from all different cultures.

"Canadian culture is just having the best of all the different cultural backgrounds," she said.

"What we are exporting is exactly that food mosaic concept."

This report by The Canadian Press was first published Dec. 4, 2024.