The Globe and Mail reports in its Thursday, Jan. 29, edition that Empire is shuttering its Voila e-commerce facilities in Alberta, saying the financial results from its on-line grocery expansion "have not met the company's financial expectations."
The Globe's Susan Krashinsky Robertson writes that on Wednesday, Empire said the size of the e-commerce market in Alberta has proven "smaller than originally anticipated."
Empire is immediately closing its fulfilment centre in the Calgary area -- less than three years after it opened -- as well as a smaller facility in Edmonton that supported the Voila business. Instead of operating the on-line service through its own fulfilment network in Alberta, the company will turn instead to expanded partnerships with third-party delivery providers.
Empire also announced on Wednesday that it will launch a new partnership with DoorDash in the coming months.
Empire expects to record about $75-million in non-cash impairment and related cash charges in its fiscal third quarter due to underperformance in its on-line business.
It expects changes to its e-commerce strategy will add about $95-million to its annual operating income next fiscal year.
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