Empire Shuts Down Voilà Grocery Delivery in Alberta
Sobeys’ parent company, Empire Co. Ltd., has announced the closure of its Voilà grocery delivery services in Alberta. This decision comes after financial performance did not meet expectations. Additionally, the expansion of the service into the Vancouver area will also be paused.
Financial Impact of Voilà Closure
The closure of the Voilà grocery delivery facilities will necessitate a significant financial adjustment. Empire will incur a writedown of $750 million in its fiscal third quarter. The company forecasts that these changes will generate an annualized operating income of $95 million for the fiscal year 2027.
Reasons for the Closure
- The Alberta grocery e-commerce market is smaller than anticipated.
- The company’s operations in this region have not met financial goals.
Immediate Changes in Alberta
Empire has confirmed that the customer fulfillment centres in Calgary and Edmonton will cease operations immediately. Plans for a new warehouse set to open in Vancouver will also be suspended.
Continued Operations in Other Provinces
Despite the closure in Alberta, Voilà will continue to operate in Ontario and Quebec. These markets are experiencing steady growth. Empire is exploring new delivery options for Western Canada, including a partnership with the delivery app DoorDash to provide same-day services.
Future of Voilà
CEO Pierre St-Laurent emphasized the need to reshape the company’s e-commerce strategy. The focus will remain on meeting customer needs and improving the overall profitability of online grocery services.
Empire launched its Voilà platform in 2020, aiming to enhance convenience for grocery shoppers. The company remains committed to evolving its services in response to changing market demands.
