Federated Co-op grocery warehouse to close in Calgary at cost of 200 jobs

CALGARY — Federated Co-operatives Ltd. says a decision by Calgary Co-op to switch to Save-on-Foods as its grocery supplier means it will have to close its Calgary distribution centre at the cost of just over 200 jobs.

The Saskatoon-based co-operative owned by more than 170 retail co-ops across Western Canada says the warehouse operation in southeast Calgary will close next April when Calgary Co-op makes the supplier switch it announced last summer.

In a statement, Federated executive vice-president Vic Huard says the shutdown was an “avoidable development” that will add to the city’s current “significant” economic challenges.

He says Calgary Co-op’s decision to access groceries from a competitor means it will no longer receive annual profit-sharing from Federated that amounted to about $186 million over five years from 2014 to 2018.

He adds the withdrawal will result in a $400-million annual reduction in FCL’s revenue from wholesaling, manufacturing and other services, which will have a negative effect on returns to its other co-op partners.

In an announcement placed on its website in August, Calgary Co-op said the supplier switch was one of several changes driven by customers’ desire for “choice, quality and everyday value,” adding there would be a new emphasis on local and healthy food offerings and a new line of private label groceries starting next spring.

Earlier this month, it announced it would buy independent Calgary grocer Community Natural Foods, which specializes in organic groceries.

“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,” said Huard.

“Calgary Co-op members have contacted us asking how this decision to move to a competitor happened without Calgary Co-op’s members being consulted. That’s not something we can answer.”

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Prime Minister Justin Trudeau speaks during a news conference on the COVID-19 pandemic outside his residence at Rideau Cottage in Ottawa, on Tuesday, Jan. 26, 2021. THE CANADIAN PRESS/Justin Tang
Cancel travel plans, Prime Minister Justin Trudeau urges Canadians

OTTAWA — Canadians should cancel any non-essential travel plans they might have,… Continue reading

In this Dec. 18, 2020 photo, pipes to be used for the Keystone XL pipeline are stored in a field near Dorchester, Neb. Canadian Prime Minister Justin Trudeau says his officials have been in frequent contact with President-elect Joe Biden’s incoming administration making the case for a long disputed oil pipeline that reports say Biden will cancel on his first day in office.   (Chris Machian /Omaha World-Herald via AP)
Members of Kenney’s UCP caucus nix NDP bid to seek details of failed Keystone XL deal

EDMONTON — Members of Premier Jason Kenney’s caucus have refused an Opposition… Continue reading

Art Kempf, originally from the Stettler area but now living in Lacombe, is pictured here with his late wife Lillian. Art’s 100th birthday is coming up on Feb. 22nd.
photo submitted
Former Stettler area resident Art Kempf will be celebrating a very special day next month

Kempf, now a Lacombe resident, marks his 100th birthday on Feb. 22nd

Pope Francis, third from left, watches Pope Emeritus Benedict XVI entering St. Peter’s Basilica accompanied by Monsignor Georg Gaenswein, at the Vatican, Tuesday, Dec. 8, 2015. (AP Photo/Andrew Medichini)
Vatican clears retired US bishop of multiple abuse claims

Retired Wyoming Bishop Joseph Hart exonerated

Terrance Josephson of the Princeton Posse, at left, and Tyson Conroy of the Summerland Steam clash during a Junior B hockey game at the Summerland Arena in the early spring of 2020. (John Arendt - Summerland Review)
QUIZ: How much do you know about hockey?

Test your knowledge of Canada’s national winter sport

(Photo submitted)
Central Alberta researchers recognized for studies in agricultural sciences

Jessica Sperber of Ponoka and David MacTaggart of Lacombe awarded prestigious scholarship

(Photo submitted)
Ponoka RCMP receives new police puppy trainee

Detachment says goodbye to ‘Maja’ and welcomes ‘Neutron’

Conservative MP Tracy Gray rises during question period in the House of Commons on Parliament Hill in Ottawa on Friday, Jan. 31, 2020. The Opposition Conservatives are urging the federal government to push back on President Joe Biden’s protectionist Buy American plan.THE CANADIAN PRESS/Justin Tang
Opposition urges Liberal government to push back against Biden’s Buy American plan

DISTRICT OF COLUMBIA — The Opposition Conservatives are urging the federal government… Continue reading

Quebec Crown prosecutor Francois Godin speaks to reporters outside a courtroom, Thursday, Nov. 5, 2020 in Quebec City. THE CANADIAN PRESS/Jacques Boissinot
Quebec City Halloween night stabbing suspect returns to court for brief hearing

QUEBEC — The 24-year-old man accused in the Quebec City Halloween night… Continue reading

European Commission President Ursula Von Der Leyen addresses European lawmakers during the presentation of the program of activities of the Portuguese Presidency on a plenary session at the European Parliament in Brussels, Wednesday, Jan. 20, 2021. THE CANADIAN PRESS/AP/Francisco Seco, Pool
Canada’s vaccine deliveries further threatened as Europe mulls export controls

OTTAWA — Prime Minister Justin Trudeau says he remains confident in Canada’s… Continue reading

Conservative MP Tracy Gray rises during question period in the House of Commons on Parliament Hill in Ottawa on Friday, Jan. 31, 2020. The Opposition Conservatives are urging the federal government to push back on President Joe Biden’s protectionist Buy American plan.THE CANADIAN PRESS/Justin Tang
If Canada can survive four years of Trump, it can navigate the new Buy American: PM

DISTRICT OF COLUMBIA — Prime Minister Justin Trudeau says after the last… Continue reading

Nova Scotia’s provincial flag flies in Ottawa, Friday July 3, 2020. THE CANADIAN PRESS/Adrian Wyld
Mistaken identity: Porn allegation dropped against Nova Scotia doctor after mix-up

HALIFAX — In a bizarre case of mistaken identity, Halifax police blamed… Continue reading

Art Kempf, originally from the Stettler area but now living in Lacombe, is pictured here with his late wife Lillian. Art’s 100th birthday is coming up on Feb. 22nd.
photo submitted
Former Stettler area resident Art Kempf will be celebrating a very special day next month

Kempf, now a Lacombe resident, marks his 100th birthday on Feb. 22nd

Most Read