Empire Co. Ltd. Halts Voilà Grocery Delivery in Alberta

In a significant shift, Empire Co. Ltd., the parent company of Sobeys, has announced the immediate cessation of its Voilà grocery delivery services in Alberta.

 

This decision also includes a pause on the planned expansion into the Vancouver area.

 

The Stellarton, Nova Scotia-based company cited that its Alberta e-commerce operations did not meet financial expectations, primarily due to the province's smaller-than-anticipated online grocery market.

 

Consequently, customer fulfillment centers in Calgary and Edmonton will be shut down immediately.

 

Empire anticipates a $750 million writedown in its fiscal third quarter as a result of this wind-down.

 

However, the company expects these moves to deliver $95 million in annualized operating income by fiscal 2027.

 

To continue serving Western Canadian customers, Empire plans to offer same-day delivery services through third-party partnerships.

 

A new collaboration with delivery app DoorDash is set to roll out in the coming months.

 

Meanwhile, the Voilà service will continue operations in Ontario and Quebec, where it has been experiencing steady growth.

 

Chief Executive Pierre St-Laurent emphasized that these decisions are part of reshaping the company's e-commerce strategy to better align with evolving customer needs and expectations.

 

He stated, "Customers in Ontario and Quebec love Voilà and, while difficult, the decisions we have made related to our customer fulfillment center network in Western Canada will help ensure the long-term growth and profitability of our e-commerce business."

 

Empire launched its online delivery platform in 2020, aiming to capture a share of the growing e-commerce market.

 

However, the underperformance in Alberta has prompted a strategic reassessment.

 

As the company navigates these changes, it remains committed to providing convenient online shopping options for its customers across Canada.

 

For Alberta residents, the transition to third-party delivery services like DoorDash may offer a seamless alternative to the previous Voilà service.

 

As these partnerships develop, customers can expect continued access to grocery delivery options tailored to their needs.

 

In summary, Empire Co. Ltd.'s decision to halt Voilà operations in Alberta reflects a strategic pivot aimed at enhancing the profitability and sustainability of its e-commerce ventures.

 

By focusing on markets with higher growth potential and leveraging third-party partnerships, the company seeks to adapt to the dynamic landscape of online grocery shopping in Canada.