Federated Co-operatives Limited (FCL) will close its Calgary Food Distribution Centre next spring, resulting in more than 200 layoffs, according to a press release issued Thursday afternoon.
The April 2020 closure is a result of Calgary Co-op’s decision to source its groceries from Save-On-Foods–a decision that was made public last August.
At the time of the announcement, Calgary Co-op said the move would “better deliver choice and exceptional experiences to our members.” It said its food business operates in an increasingly challenging and competitive market. Differentiating its business will allow it to “reflect our members’ needs.”
FCL said it would start winding down operations at the food distribution centre, and products for other co-ops in Alberta and British Columbia will be shipped through FCL warehouses in Edmonton and Saskatoon.
“In a city that’s already experiencing significant economic challenges, Calgary Co-op’s decision has led to more jobs being lost, and more families facing challenges,” said Vic Huard, FCL executive vice-president customer experience and stakeholder engagement, in a statement. “By aligning itself with a competitor, Calgary Co-op has directly and negatively impacted our employees, their families and Calgary’s economy.”