Quote:
Originally Posted by Chaps
Sounds like Saskatoon has a smaller one that is closing down as this one opens.
I wonder if this is a sign of investment shifting from Saskatoon to Regina with these types of facilities because of the Intermodal Hub?
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Perhaps, only time will tell.
It could be a sign of Loblaws targeting a market deficiency (southern prairie population centres?), or exploiting an opportunity for lower costs and increased efficiency (no more UFCW!).
The IMF is one reason for the relocation, but it does not explain the entire story.
I am interested to see who, or what becomes of their soon to be vacant Saskatoon facility...and what happens to Calac Trucking (a division of Tri Cal) Saskatoon operations. Calac is the primary operator for Loblaw's Saskatchewan operations. Calac also has agreements with Calgary Loblaws (not sure about Edmonton), and I think Manitoba as well. I think they may move their operations along with the Loblaw's relocation, really depends on the eventual working relationship between Loblaw's and the third party warehouse operator.
This is the site of Loblaw's Western Grocers DC in south Saskatoon (adjacent to the CN rail line, the CN IMF is a few kilometers west, just across the river).

Sort-of-related: Federated Co-op was open to offers for their Saskatoon warehouse back in early 2007, none of the interested parties showed interest and that was the end of that. Months after, Federated invested heavily into the half-century old warehouse, not sure if a sale is still in the works, or if they are open to offers, but it gives you an idea of the Saskatchewan scene. Whether Federated would establish a DC in Regina is difficult to say, they're a risk-averse company, but new opportunities (IMF) could provide for new synergies...
What other large distribution centres/wholesalers does the Regina area lay claim to?
And congratulations on the DC and developing office tower news, should shape up to something great