STELLARTON, NS and MINNEAPOLIS, MN: Sobeys Inc and Target Canada Co have inked a long-term wholesale distribution arrangement that will see Sobeys supply Target stores in Canada with some food and grocery products. Beginning in early 2013, Sobeys will supply Target’s food and grocery requirements for frozen, dairy, and dry grocery products, including national brand and Target’s private label brands.
“We are pleased to welcome Target as a valued wholesale customer,” said Bill McEwan, president & CEO, Sobeys Inc. “The associated increased revenue, and the supply chain efficiencies, which will lower our costs, will continue to strengthen our competitive position.”
Through its network of 23 food distribution centres across Canada, Sobeys said it will provide the same service level to Target’s store network as it does to its own network of 1,300 stores across the country. The two companies have also agreed to leverage each other’s distribution networks to mutually reduce transportation expenses. Along with the wholesale distribution arrangement, the companies said they will explore other supply chain opportunities.
“Target is excited to be working with a partner like Sobeys,” said Tony Fisher, president of Target Canada. “We look forward to building a strong relationship that creates value across both companies for a long time to come,”