Thrifty Foods is preparing to expand one of its oldest Victoria stores, but its growth will force the relocation or closing of three small retailers.

Thrifty Foods' Cloverdale location at 3475 Quadra St. will be renovated and expand to take over about 5,000 square feet of retail space in a neighourhood strip mall shortly after Christmas.

According to spokesman Michael Alexander, it's a move that's been a long time coming as the company has already renovated and expanded its older James Bay and Fairfield locations.

"It's badly needed, so we're expanding quite a bit to accommodate the shoppers in the neighbourhood," he said. The store would remain open throughout the renovation which is expected to wrap up in May.

"There is increased competition coming into the marketplace and to maintain your competitive edge you have to be able to offer your customers what they want."

The renovated store will feature a number of Thrifty staples like cheese islands and expanded departments.

"It will have an easier flow for customers," he said.

Not so lucky are three tenants of the strip mall -- Villages Pizza, Nighthawk Video and a Women in Need store -- which have been asked to vacate their space by the end of the year.

"We're just looking for a new location, but there's nothing in the neighbourhood," said John Papaloukas, owner of Villages which has six other locations in the region. "It's too bad, this store was profitable and it's such a great neighbourhood."

Papaloukas said there are no hard feelings as Thrifty made it known years ago that expansion was always a possibility.

Papaloukas said he's not sure where they will relocate the store, but suggested the Uptown development makes sense.

"It looks like the good, long-term play though they are not really cheap," he said. "Then again, I have to think the traffic will be big there."

The owner of Nighthawk was unavailable yesterday, but a letter on the door told customers that due to the changing movie-rental landscape with things like on-demand movies, and the Thrifty Foods decision, the store would not relocate but instead would be winding down operations Dec. 31.

A letter on the door of the thrift store told customers it will close Nov. 30, but items would be relocated to an expanded Pandora Avenue location.

Thrifty Foods is also expanding outside Victoria with renovations and expansion at stores in Parksville and Duncan.

There are also plans to open three stores on the Lower Mainland next year with a South Surrey store in February at the Morgan Crossing development, and stores in Abbotsford and North Vancouver in the fall of next year.

The three stores are all likely to be about 35,000 square feet in size, but each will be tailored somewhat to the community.

Alexander said the new stores in Vancouver are about need.

"It's not that the Island is a mature market or saturated, not at all, but the profile for growth is going to focus on the Lower Mainland," he said.

When the new stores open, Thrifty Foods will have 26 locations in B.C.

aduffy@tc.canwest.com