First it was clothing stores. Then A&W. Now it’s the city’s only movie theatre. 

Yellowknife’s retail scene is shrinking as people swap local loyalty for digital deals, risking a future where the city’s charm is replaced by empty storefronts and digital algorithms. 

The exodus includes both national chains and local landmarks. While Reitmans and Warehouse One said goodbye, the city also lost Bijou and Iceblink. Yellowknife’s musical gear store, Fiddles and Stix, was a fixture for 31 years before closing its doors in September. And it’s curtains down for Capitol Theatre on March 31.

Experts attribute the closures to a combination of economic uncertainty that has gripped the country and a shift of people’s preferences to digital shopping, mostly because of convenience and price.

David Pullara, a retail expert from York University’s Schulich business school, said the wave of closures is not unique to Yellowknife. He chalks it up to financial volatility across the country given the on-again, off-again tariffs imposed by U.S. President Donald Trump.

The uncertainty means companies are stalling on big investments or hiring, leading to a lull in job creation, he said. 

“Discretionary spending goes down,” Pullara said. “If you’re not spending at retail then the retailers obviously are going to be impacted by that.”

While people are watching what they spend across the country, Pullara said the trend is magnified in Yellowknife because of the small population, remote location and — tariffs. 

With a population around 22,000, Pullara said it’s hard for mom-and-pop shops in Yellowknife to compete with big-box retailers and online giants like Amazon.

Local businesses champion local talent

Aislinn Stirling-Crosby, co-owner of Overlander Sports, said her store’s main competition is people shopping online or going south to get things. 

However, the community still looks to local shops for help, she said. Her store gets a lot of donation requests from local sports teams or charity organizations, she noted.

“I guess just when people want donations, they’re not writing to [Amazon founder] Jeff Bezos,” she said. “Amazon’s not giving your town anything. But we are.”

The town would lose its charm and colour without local businesses, and simply be a place with houses surrounded by office buildings, Stirling-Crosby said.

Jennifer Baerg Steyn, owner of Yellowknife Books, said their store has seen a drop in traffic too.

They said stores stores like theirs showcase Northern writing.

“If you’re depending solely off an Amazon algorithm, what is the likelihood that you are going, as a Northerner, to see the newest publications of Northern writers? Maybe your algorithm works for you, maybe it doesn’t.”

Pullara said there will always be a certain segment of the population who’s going to feel a sense of loyalty toward mom-and-pop shops. But a lot of people are carefully looking at their wallets and realizing that box stores offer competitive prices, he added.

“Sometimes they have to kind of huddle in and do what’s best for their household, not necessarily what’s best for the community in the long term,” he said. “That’s unfortunate, but I think that’s the reality sometimes.”

Bell sees ‘busy’ future for Yellowknife

Adrian Bell, a former president of the Yellowknife Chamber of Commerce, called the closing of retail stores “cyclical.”

“Over time tenants leave, new tenants come in,” he said. “If you were to see some of these spaces repeatedly being empty and several businesses closing down over time, then you might have cause for concern.”

He said he sees a “busy” future for Yellowknife as the federal government plans spending on military infrastructure in the coming years.

The federal government announced in February it’s set to spend about $2.67 billion to build military hubs. However, there was no timeline for when the three northern hubs would be operational.

Pullara was cautiously optimistic, saying the ripple effects will only be felt once there are more details about what is coming.

Richard Powers, associate professor at University of Toronto’s Joseph L. Rotman School of Management, said if the federal government does spend money developing the North, it increases opportunities for retail.

“So if you’re bringing in military – they all have families, they all have kids. They need clothing, they need hockey equipment, they need entertainment choices,” he said. 

“So anything to bring in more potential for more customers is positive.”