Co-op Food Distribution Centre closing, leaving 200 without work
Posted Nov 21, 2019 12:05 pm.
Last Updated Nov 21, 2019 3:27 pm.
This article is more than 5 years old.
CALGARY (660 NEWS) – Over 200 jobs will be lost as Calgary Federated Co-op Ltd. (FCL) will close its food distribution centre.
In July, Calgary Co-op announced it was sourcing its groceries from Save-on-Foods effective April 2020.
Executive Vice-President of Customer Experience Vic Huard called the decision a self-imposed wound.
“We’re deeply saddened by this avoidable development. There’s been a Co-op warehouse in Calgary for 70 years, and we know that the negative repercussions of this decision will be felt for a long time in Calgary.”
FCL says products for other Co-ops in Alberta and B.C. will gradually be shipped through its warehouses in Edmonton and Saskatoon.
Huard adds it will be a difficult time for the employees and their families and right now, there’s no word on what will happen to the facility.
“We are looking at all sorts of other future ramifications of this decision. We’re not done system-wide with other decisions we’re going to have to take in this regard. The warehouse itself, for the time being, we’re going to maintain the warehouse as a property, but future use of that property remains to be determined.”
Calgary Co-op CEO Ken Keelor says the company feels for those losing their jobs, but this change will allow them to offer more high-quality products at a better price.
“Our focus is on 440,000 member-owners of Calgary Co-op and being here for them for the long term. We also have 3,700 team members or employees,” said Keelor. “A switch in suppliers or the name on the truck that’s showing up at the back door is less relevant. Our focus is on the benefits to members who are coming in the front door.”
He adds they need to be competitive as they try to keep up with bigger chains.
“Margins are very, very thin. And Calgary Co-op, our volume is very small compared to the competitors who we are up against.”
