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The name McKay Brothers first became associated with John Deere in 1950 when Grant McKay, a native of Webb Saskatchewan, took over the Lethbridge dealership from the previous owner, A.C. MacDonald. The original location of the McKay Bros. dealership was on second Avenue South, in close proximity to what was then the John Deere (wholesale) company store.
The original building, located a few blocks west of John Deere, housed McKay Bros. for 17 years until it moved to its current location on fifth Avenue North. Quarters were cramped and, as business improved, additional space was rented across the street. Competition was keen since there were a substantial number of other John Deere dealerships operating in the area. These included Stirling, Coaldale, Magrath, Raymond, Milk River, Vauxhall, and Picture Butte. Grant McKay and A. C. Mac Donald were great friends and the complete dealership, including the building, and parts were taken over by Grant with little money down and the business purchased out of operating profits. Grant's brother, Murray McKay, joined as a minor shareholder shortly after start-up and Fred Lastuka was hired as the key salesman in 1951. All three remained with McKay Bros. for the rest of their working lives. Three mechanics and an office girl brought the initial staffing to 7. Fred Lastuka tells us that, back in the '50s, John Deere was not well recognized in the area with International being “very big” and Case also with a good position. As well as having good quality Deere product to sell, Lastuka attributes their success in the earlier years to Grant and his staff always being true to their words, having respect for their customers, and being honest and forthright. Grant’s word was his bond. Having fun at work was also part of the culture.
The business was incorporated on October 25th, 1957 taking on McKay Bros. Farm Implements Ltd as its official name.
During the 1950s, the Lethbridge John Deere branch distributed parts and whole goods to most of Southern Alberta and, in addition to the main building, had storage across the tracks. Being located just down the street from the distribution point and a large parts stock was a major advantage for McKay Bros. and the point of envy for other dealers. In many cases it was possible to go to the branch office and pick up a part while the customer waited down the street at McKay's parts counter.
By the mid-1960s, the John Deere company had moved to Calgary and plans were in place for it to be closed and for Regina to be established as the major distribution center. Part of this change incorporated a plan to store substantially more whole goods inventory at dealerships, which, in turn, required larger land bases for each dealer. Therefore, in 1966, the current (6acre) site of McKay Bros. on fifth Avenue North in the industrial park was purchased from the City of Lethbridge. The site was grassland, had just been developed by the city, and McKay Bros. was one of the first to build in the new industrial park. The closest business was Superior Propane, which had taken over the site across the street which, during the war, had been a prison camp. Most equipment was shipped to the dealerships at that time by rail, and tractors were picked up downtown at the unloading yards. Construction of the 12,000 square foot building was completed in 1967 and the dealership moved to its current location where it has remained for over 35 years.
While Grant McKay was general manager of the dealership, the business was also involved at various times in marketing irrigation systems, fertilizer, as well as farming on the nearby Blood Indian reserve. In the early 60’s, the dealership was instrumental in the development and testing of a grain drill suitable for the conditions around Lethbridge. John Deere eventually put that grain drill into production.
In the early 1970s, Grant McKay sold out to his brother Murray and Charles “Chuck” James. Chuck was born in Lethbridge where his father, Avener James, had managed the John Deere branch house in the 1940s. Previous to joining McKay Bros. he had held various sales and management positions with John Deere Ltd. Chuck remained General Manager of the dealership until he retired in 1992.
Chuck purchased the shares owned by Murray McKay (who was retiring for health reasons) in 1980 at which time Rob Arvidson replaced Murray as Controller/shareholder. Later, in 1984, Alan Fabro joined McKay Bros. as a shareholder/sales person. Alan, originally from Kimberley BC, brought with him 7 years’ experience with John Deere Limited (including a term as territory manager in Lethbridge) as well as 3 years experience as General Sales Manager for Canada with Allis Chalmers.
On Chuck James’ retirement in 1992, Alan Fabro, Cor van Raay, and John James purchased all of the shares of McKay Bros. Alan, who had been Sales Manager for the previous 6 years, took over his current position as General Manager and John James held the position of Sales Manager until leaving the business in the spring of 2004. Cor van Raay, who operates a large farm and feedlot operation, is not active in the day-to-day operations.
By this time, McKay Bros. was one of the largest single-location Deere locations in Canada. Shop sales were high and were conducted out of four locations. The tractor shop was operating out of the main shop in the south-east section of the main building, the lawn and garden shop was in an add-on cinder block section on the south-west corner, the front half of the storage shed had been insulated to serve as the combine shop and a building on the east side to 33rd street was used for overflow. Space was at a premium and it was common, if a tractor was held up for parts, to “button it up” and store it outside for a few days to free up precious space. A decision was made to do a major building addition and upgrade in 1994.
A 19,000 square foot shop addition was made to the south end of the main building which necessitated relocating the storage building to the southwest corner of the property. The building was built with sufficient height to accommodate an overhead crane which also allowed for later (2002) upstairs development of additional offices, a boardroom, as well a coffee room large enough for the entire staff. New perimeter fencing was added, the exterior of the original building was re-clad and a few years later pavement was extended to cover the entire north half of the property.
McKay Bros. has earned a place in the John Deere Managers Club (the top 15 dealerships in Canada) a number of times but its crowning achievement was, in 2001, to be selected as Canada’s Number 1 Agricultural dealership.
Alan Fabro, General Manager, while congratulating the staff on their accomplishment, said, “Although our business has grown substantially over the years, the basic values of integrity, positive attitude and customer focus developed by the founders of McKay Bros. are still integral to our success”.
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