Steinberg's

Founding and Early Growth

Ida Steinberg, a Jewish-Hungarian immigrant, opened the first Steinberg's grocery store on St. Lawrence Boulevard in Montreal in 1917. The modest storefront was a family endeavour, with Ida's five sons actively involved in its operation. Leadership soon passed to her son Sam Steinberg, whose vision and business acumen propelled the company's rapid expansion. In 1934, Steinberg's pioneered the supermarket concept in Quebec, introducing a larger format store that revolutionized grocery shopping in the province. The company was formally incorporated as Steinberg's Limited in 1930, providing a corporate structure to support its growing network of stores throughout Montreal and the surrounding region. Sam Steinberg implemented mandatory bilingualism for all personnel, making the company one of the first major employers in Quebec to do so.

Expansion and Diversification

Under Sam Steinberg's leadership, the company aggressively expanded its supermarket footprint while diversifying into numerous other business ventures. A major move came in 1959 with the acquisition of 38 Grand Union stores in Ontario, establishing Steinberg's presence west of Ottawa. The company also made significant inroads into real estate, forming Ivanhoe Investments in 1952 to develop and own shopping centres, a division that would become exceptionally profitable. To better align with Quebec's linguistic landscape, the company officially dropped the possessive from its name in 1961, becoming simply Steinberg. The chain's cultural impact was demonstrated by the phrase Je fais mon Steinberg entering Quebec French as a generic term for grocery shopping.

The company's portfolio of subsidiaries grew extensively, creating a vast, vertically integrated retail conglomerate. Key holdings included food production facilities like Steinberg Foods Limited, established in 1966, and Trillium Meats. The company acquired a large stake in Cartier Refined Sugars Limited in 1966, eventually taking full ownership. In retail, it launched the discount department store chain Miracle Mart in 1961 and the popular mall-based restaurant chains Pik-Nik, established in 1966, and Le Quick. The Ontario supermarket operations, which struggled with competition and poor locations, were rebranded as Miracle Food Mart starting in 1969. The company experimented with hypermarket formats under the Steinberg Beaucoup and Miracle Beaucoup banners, combining groceries, general merchandise, and dining under one roof, with the first two opening in Laval, Quebec, and Bramalea, Ontario.

• Miracle Mart: Discount department store chain launched in 1961, later renamed M.
• Miracle Food Mart: Supermarket chain operating in Ontario from 1969.
• Valdi: Discount grocery chain founded in 1979, operating in Ontario and western Canada.
• Pik-Nik: Mall-based snack bar and restaurant chain established in 1966.
• Le Quick: Restaurant chain often located in malls with a Steinberg store.
• Ivanhoe Inc: Real estate and development arm, founded in 1952.
• Steinberg Foods Limited: In-house bakery and food production facility, established 1966.
• Cardinal Distributors: A mail-order gift catalogue that merged with Consumers Distributing in 1979.

Corporate Structure and Peak Operations

By the late 1980s, Steinberg Inc had reached the zenith of its size and influence. The corporation was a diversified retailing giant with head offices in Montreal, engaged in food retailing and manufacturing, general merchandise retailing, and real estate development. Its extensive operations included over 300 supermarkets and grocery stores across Quebec and Ontario, 24 Miracle Mart department stores, more than 150 restaurants, and ownership interests in 35 shopping centres. In 1987, the company reported sales of $4.5 billion, held assets valued at $1.5 billion, and employed more than 36,000 people. Despite its public trading, the Steinberg family maintained firm control, with family trusts owning 88 percent of the company as of early 1988.

The company's structure was complex, with several major divisions and partial ownerships in other enterprises. The real estate portfolio held through Ivanhoe Inc was particularly valuable, containing prime commercial properties. Steinberg also held significant stakes in other companies, including a 50 percent share in the wholesale club Price Club, for which it was the exclusive Canadian operator starting in 1985, and a 50 percent stake in Lantic Sugar following the sale of Cartier Sugar in 1981. The company owned 30 percent of Phoenix Mills Inc, a large flour mill, and had acquired Smitty's Super Value Inc, an Arizona-based supermarket chain, in 1981. This period represented the full expression of Sam Steinberg's vision of a self-sufficient retail empire that controlled aspects of production, distribution, and sales.

Leadership Transition and Mounting Challenges

The company's fortunes began to falter following the death of its visionary leader, Sam Steinberg, in 1978. His passing revealed a critical lack of a succession plan and ignited a protracted power struggle among his heirs. His daughters Mitzi, Marilyn, and Evelyn, along with Mitzi's husband Mel Dobrin, each held equal controlling shares through trusts, leading to internal conflict and a loss of strategic direction. The shares of Sam's widow, Helen, were also part of the family voting trust, which was stipulated to vote as one block. The company also faced mounting challenges from higher unionized labour costs compared to its competitors, a problem stemming from Sam Steinberg's earlier dealings with unions. For several years, the company drifted without clear leadership, losing ground to chains like Provigo and Metro.

In an attempt to reverse the decline, the board appointed Irving Ludmer as CEO in April 1984. Ludmer, a former Steinberg real estate vice president who had worked with the company from 1957 until 1971, rejoined the real estate branch Ivanhoe in 1983. He implemented sweeping operational changes that temporarily improved sales and stock performance, making the company more attractive to investors. However, the underlying issues of family discord, high costs, and fierce competition from chains like Loblaws continued to erode the company's foundation. By the end of the decade, the family decided to sell, placing the company on the auction block with an estimated value of $1.5 billion. Potential buyers included Loblaws, Oxdon Investments, Oxford Development, Metro-Richelieu, Provigo, and a management buyout group led by Ludmer and Arnold Steinberg.

Leveraged Buyout and Asset Sales

After a complicated bidding process where Loblaws was blocked by the Quebec government, Steinberg Inc was sold on August 22, 1989, for $1.3 billion to a joint venture between Socanav, a marine shipping firm, and the Caisse de dépôt et placement du Québec. The buyout was highly leveraged, saddling the company with a crippling debt load. Socanav, despite having no retail experience, immediately began dismantling the empire to repay creditors. The Caisse de dépôt had wanted the Ivanhoe real estate arm for its attractive portfolio from the start, and acquired it for $887 million in 1990. Other major stakes were quickly liquidated, with the 50 percent shares in Lantic Sugar and Price Club sold for $110 million and $58 million respectively.

The Ontario grocery operations, consisting of 58 Miracle Food Marts and 11 Miracle Ultra-Marts along with divisional offices in Rexdale, Etobicoke, were sold to A&P Canada in July 1990 for $235 million, with the deal closing on October 20, 1990. These stores were eventually rebranded under A&P, Dominion, or Ultra Food & Drug banners. The final ten Ontario stores in Ottawa, Cornwall and Brockville, which were part of the Quebec division, were purchased by Loblaws under National Grocer Co. in January 1992 and converted or closed. That sale included two stores operating as Xtra Discount supermarkets. The Valdi chain, with 74 stores in Ontario and Quebec and others in western Canada, remained a subsidiary until its western stores closed in 1991 and 1992.

Bankruptcy and Final Store Closures

Attempts to save the remaining Quebec core through franchising and restructuring failed due to the 1990 to 1992 recession, supplier uncertainty, pressure from creditors, mounting losses, and heavy interest payments on the buyout debt. Under Socanav, some locations were operated as franchises for the first time to save on labour costs. In May 1992, the company obtained court protection to liquidate and pay off creditors. Loblaws again attempted to buy the chain but was foiled by the Quebec government, which arranged for the stores to be sold to local competitors Metro Richelieu and Provigo. To avoid creating a monopoly, Provigo resold half of its acquired Steinberg's stores to IGA.

By mid-1992, the phased closure of the Steinberg's grocery chain and its M department stores was underway. The M locations closed outright as no buyer could be found for them. Sixteen Steinberg's grocery locations found no buyer. Six of these stores closed on August 29, 1992, and the final ten shuttered on September 5, 1992, in the cities of Rimouski, Chicoutimi, Longueuil, Hull, Saint-Hubert, Quebec City, Saint-Bruno, Saint-Jérôme, Laval and Bromont. The acquired stores were split among five supermarket chains: Metro, IGA, Maxi, Héritage and Provigo. None converted directly to the Super C banner, though some Metro stores later rebranded to Super C in the mid-1990s.

Remaining Influence and Cultural Impact

Elements of the Steinberg empire continue to operate today. Its real estate arm, Ivanhoe, merged with Cambridge Shopping Centres Ltd in 2001 to become Ivanhoe Cambridge, a global real estate investment and management firm. The Pik-Nik restaurant chain, founded in 1966, lasted until the mid-2010s. The story of the company's rise and fall, particularly the succession struggle after Sam Steinberg's death, was documented in the 1974 National Film Board film After Mr. Sam by Arthur Hammond. For decades, Steinberg's was the largest supermarket chain in Quebec, with stores in nearly every district of Montreal, and it remained a major competitor until the late 1980s.

The company's influence extended into Quebec language and culture. The chain's name became so entrenched that the act of grocery shopping was commonly referred to as doing one's Steinberg. The company's policy of mandatory bilingualism for staff set an early standard for retail employment in the province. The various subsidiaries, from Miracle Mart to Valdi, shaped shopping habits across multiple retail sectors. The dismantlement of the company in the early 1990s marked a significant shift in Canadian retail, redistributing its substantial market share among competitors and concluding a 75-year business history that began with a single immigrant-owned grocery store.

Questions about Steinberg's

When did Steinberg's go out of business?

Steinberg's went bankrupt in 1992, after 75 years in business. The company obtained court protection in May 1992 to liquidate and pay creditors. The final company owned Steinberg's grocery stores closed on September 5, 1992, in cities like Rimouski and Quebec City. This followed a highly leveraged buyout in 1989 which led to the piecemeal sale of assets, including its Ontario operations and real estate portfolio, throughout 1990 and 1991.

What happened to Steinberg's stores in Ontario?

Steinberg's Ontario operations were sold off separately. In July 1990, A&P Canada purchased the Ontario division, which consisted of 58 Miracle Food Marts and 11 Miracle Ultra Marts, for 235 million dollars. These stores were later rebranded under A&P, Dominion, or Ultra Mart banners. The remaining ten stores in Ottawa, Cornwall, and Brockville, which were part of the Quebec division, were bought by Loblaws in January 1992 and were either converted to Loblaws or Your Independent Grocer stores or closed.

Why did Steinberg's fail?

Steinberg's failed due to a combination of internal and external pressures. The decline began after founder Sam Steinberg's death in 1978, which led to family infighting, a lack of succession planning, and higher unionized labour costs than competitors. The company was sold in a heavily leveraged buyout in 1989, incurring a massive debt load. This forced the rapid sale of profitable assets to pay down debt, while the remaining operations struggled with supplier uncertainty, creditor pressure, and mounting losses, leading to bankruptcy in 1992.

Who founded Steinberg's and when?

Steinberg's was founded in 1917 in Montreal by Ida Steinberg, a Jewish Hungarian immigrant. The grocery store began as a tiny storefront on St. Lawrence Boulevard. Her five sons, led by Sam Steinberg, grew the company into Quebec's largest supermarket chain. It was a family owned business from its inception until its sale in 1989.

What was Steinberg's real estate arm called and what happened to it?

Steinberg's real estate arm was called Ivanhoe Investments, established in 1952. It became one of the company's most profitable ventures, owning several shopping centres. This real estate portfolio was the company's most valuable asset by the time of its sale. In 1990, the Caisse de dépôt et placement du Québec acquired Ivanhoe for $887 million. It continues today under the name Ivanhoe Cambridge after absorbing Cambridge Shopping Centres Ltd in 2001.

What does the phrase 'Je fais mon Steinberg' mean?

The phrase 'Je fais mon Steinberg' translates to 'I'm doing my Steinberg's' and was a synonym for going grocery shopping among French speaking Quebecers. This phrase highlights how deeply the company was entrenched in Quebec culture. Steinberg's was the largest supermarket chain in Quebec for several decades until the late 1980s. The company's cultural impact was so significant that the phrase was used regardless of which supermarket chain people were actually shopping at.

Sources and further reading

• Steinberg's (Wikipedia)
• Steinberg Inc (thecanadianencyclopedia.ca)

Checked by the Novello Desserts desk. Last updated 2026-10-24.