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How Ghost Kitchens Can Help Struggling Restaurants: Op-Ed

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Retail Insider
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Image: Lightspeed HQ

By Ryan Moreno, CEO of Joseph Richard Group and Meal Ticket Brands

As any restaurant worker or owner can tell you, the Covid-19 pandemic has sent devastating shockwaves throughout the entire hospitality industry.

Following the initial shutdowns in March 2020, the month of April brought the lowest sales period for the industry in over two decades. Sales improved the following year but were drastically slowed by the third and fourth Covid waves that eliminated in-person dining. As of 2021, more than half (51.2%) of food and beverage services in Canada stated that they did not know how long they could continue operations before having to consider closure or bankruptcy. An additional 81% took on additional debt due to the pandemic, with 60% of table-service restaurants operating at a loss.

These numbers and the lasting effects of Covid-19 restrictions can be seen in today’s industry through business closures, staffing shortages, and unfortunately a decreased number of unique independent businesses. The negative impacts trickled down to also impact foodservice operators and suppliers across the country. As the industry re-emerges, business owners and industry suppliers are working to pay off their increased debts and lower operating costs to get services and profits back to pre-pandemic numbers.

A new trend emerging out of this has been an increased reliance on food delivery and take-away solutions. Canadian hospitality data shows that traditional restaurants are seeing annual growth of 11.45% when it comes to food delivery services. By definition, food delivery services refer to any method of take-away experience, whether that is third-party delivery apps, first-person delivery, or pick-up from the location. With most restaurants choosing to partner with third-party delivery services like SkipTheDishes, DoorDash, and Uber Eats, they’re forced to make the difficult choice between meeting customer demands for increased delivery options and losing 20% of profit to the third-party services or not realizing that incremental revenue potential

Big Rock Brewery in Liberty Village (Image: Dustin Fuhs)

Restaurant owners are looking for new ways to tap into this growing trend without having to sacrifice a significant profit margin. This search for a middle ground has opened the door for new opportunities, specifically strategic partnerships between virtual brands and traditional restaurants. Restaurants typically lose 20-25% of profit when partnering with third-party delivery services for existing menus. By introducing a new stream of revenue using ghost kitchens, the surcharge is less impactful to the pre-existing restaurant revenue and less time and money are spent on the creation and operating process behind new menu items. By partnering with ghost kitchens, restaurants open the door to unlocking new earning potential through a program that offers menus, recipes, training, technology, branding, marketing, and promotions.

From the perspective of the ghost kitchen operators, it is imperative to partner with a professional and experienced restaurant that can introduce curated brands to their community. To make this relationship work, the curated brands must fit with the original restaurant audience and fit into the setup of the existing kitchen. Once set up, customers can select the virtual brands from the same method of online ordering as they would with the original restaurant. The virtual brands multiply the digital storefronts and increase incremental revenue potential substantially. The restaurant takes majority of the profit, less fees to the managing virtual restaurant company.

One thing is very clear – Canadians love food delivery services and show no sign of decreasing demand. With the Canadian food delivery market projected to reach $98 billion by 2027, restaurant operators will have to integrate delivery services to stay on top of the growing demand. Many creative strategies are hitting the market (drone deliveries, for example), but not all of them will be a fit for every audience and customer base. Ghost kitchens offer a unique opportunity to increase delivery services and serve a variety of offerings, without losing profits from pre-existing operations. The mutual benefits received by ghost kitchen and restaurant partnerships offer a new approach to overcoming the damage of the past two years. The hospitality industry must work together to rebuild what was lost and ghost kitchens might be the key in doing so.

About Ryan Moreno:

Ryan Moreno is the CEO and co-founder of the collective hospitality group, The Joseph Richard Group (JRG). Since first opening in 2009, JRG has expanded exponentially, now featuring more than 25 unique locations, including an impressive list of restaurants, Public Houses, Liquor Outlets, Private-label beer & wine, ghost kitchens, and a Hotel.

One Week Away: In Conversation with Retail Leaders in Canada Event Featuring Metro Inc.

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Retail Insider
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Metro (Photo by Peter Power / The Globe and Mail)

Direct access to senior leaders from the biggest retailers in Canada is the hallmark of Retail Council of Canada’s exclusive In Conversation with Retail Leaders in Canada series. These events provide access for vendors and suppliers to hear directly from senior retail executives about their business strategies and future plans – without retail competitors or media in the room.

RCC’s 2022 series will kick-off on May 5, 2022 in Toronto with the first in person event since 2019!  The event will feature Carmen Fortino, Executive Vice President and Metro Ontario Division Head and National Supply Chain with Metro Inc. Join Carmen in conversation with President and CEO of Retail Council of Canada Diane J. Brisebois, as they touch on topics like modernization, the future of grocery at METRO, and more. 

Mr. Fortino brings a lifetime of Canadian food retail experience and success to METRO, complemented by experiences in the health and wellness sector internationally.  He has a deep understanding of the Ontario market, having grown up in a family of grocers.  He’s focused on delivering a great customer experience that drives results and has extensive experience in operations, merchandising and supply chain/logistics along with great leadership skills.

The event will take place at the Delta Toronto Airport Hotel and Conference Centre. Take full advantage of networking opportunities as team members from these companies will also be present to answer questions from attendees.

To register for these events, visit RetailCouncil.org/events. Individual tickets are available, but vendors and suppliers can receive a 10% discount when they register five or more team members.

Again, please note, this event is only open to the retail supplier/vendor community.

[Register Here]

Member, Non-Retail $199.00 | Non-Member, Non-Retail $349.00

What Does Purpose-Driven, Sustainable Business Leadership Look Like?

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Retail Insider
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Image: MNP

By Maurizio Patarnello, CEO of Flow Alkaline Spring Water

The more we hear companies talk about purpose, the more it runs the risk of becoming another catch-all buzzword. More than a marketing tool, purpose speaks to the very existence of a company, offering a roadmap for decision-making in an ever-changing retail environment.

Companies used to be able to rely on a linear purpose, turning to their product or service offering to communicate their reason for being. But in a time where customers seek opportunities to connect with brands past the point of purchase, transformative purpose expands the impact a company can have on customers and the community. Customer and shareholder demand is driving the corporate conversation on sustainability and stakeholder-driven, transformative purpose. In a 2019 Insights report, Deloitte found that purpose-driven companies grow an average of three times faster than competitors, enjoying higher rates of customer satisfaction.

Flow Water’s purpose has been the same since our founding in 2014, to reduce environmental impacts with products that maximize our customers’ health and wellness. Flow’s reason for being is tied to our commitment to sustainable business practices, such as becoming a carbon negative business by 2025. Successful purpose-driven companies are transparent, making it clear to customers where and how sustainability plays a role in everything from product offerings to corporate decision-making. Flow differentiates itself by being mission-driven, e.g. sourcing our naturally alkaline (pH ±8.1), electrolyte-rich water from two artesian springs and using renewable, plant-based packaging.

Inevitably, conversations about purpose and sustainability lead companies to invest in and prioritize  corporate social responsibility (CSR). Last year’s Meaningful Brands report found that 71% of surveyed customers have “little faith” that companies will deliver on sustainability promises. These never-ending commitments to social responsibility have fueled public skepticism as companies often lack follow-through. Businesses need to take measurable action and be transparent about how they are fulfilling promises, so that CSR commitments are more than just a few notes on a slide deck and have an impact on their communities.

Flow aggressively pursued a “Best for the World” B Corporation™ Certified status because being authentic in our sustainability efforts is paramount to our success as a purpose-driven company. A recent study showed that 58% of customers label themselves as belief-driven, supporting and advocating for businesses based on their core values. Customers have more choices than ever before, but through these shared values, Flow has been able to form authentic connections with customers based around CSR.

McKinsey recently named inaction on sustainability as one of five consumer zero tolerance factors. Companies can no longer afford to be stagnant, and a truly transformative purpose will push a company to go further with CSR. In 2021, Flow joined The Climate Pledge (TCP), a global commitment to reach net-zero carbon emissions by 2040 and meet the Paris Agreement goals a decade early. Expanding the scope of our sustainability commitments strengthens our relationship with customers and community stakeholders.

Flow actively works to lower our carbon footprint through packaging, renewable energy use and carbon mitigation and offsetting strategies. While the company currently operates carbon neutral, purpose helps us evolve as we widen our impact—Flow is working towards the ambitious goal of being carbon negative by 2025, and will continue to be transparent in this process.

Just as it is outdated to frame sustainability and profitability as mutually exclusive, it is misguided for companies to see purpose as a quick sales fix. When we talk about the importance of transparency and authenticity in purpose-driven companies, the key element is consistency. A guiding, transformative purpose helps ensure that companies are consistent in their corporate citizenship. Companies like Flow lead with purpose, discovering additional opportunities that have positive impact on customers and their communities as we grow.

Maurizio Patarnello is the CEO of Flow Alkaline Spring Water.

Maurizio joined Flow after an impressive 27+ year career working for Nestlé. During his tenure he assumed various positions of increasing responsibility around the world, including throughout western and eastern Europe, Asia, and the Middle East. In 2017 he was appointed CEO and Chairman of Nestlé Waters, a role that he occupied through the end of 2019.

He has dedicated the large majority of his career to the bottled water business, in which he significantly contributed to Nestlé Waters’ growth of iconic multibillion dollar brands such as Nestle Pure Life, Perrier, San Pellegrino, Acqua Panna and Poland Spring. He is also a pioneer in the global consumer health movement from carbonated soft drinks to bottled water.

Lightspeed Marks Earth Day with Carbon Free Dining Expansion and Tree Planting Announcement for Africa

By
Retail Insider
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Montreal-based Lightspeed, a leading provider of cloud-based, omnichannel commerce platforms, announced on Friday two significant initiatives for Earth Day 2022. That includes an expansion of its Carbon Free Dining initiative as well as plans to plant 3,000 trees in Africa. 

Lightspeed’s Carbon Free Dinning is an exclusive Restaurant Rewards program in partnership with Sustainably Run which allows diners at restaurants using Lightspeed to have the option to add a small contribution to their bill so Sustainably Run can plant trees in developing countries. 

The tree planting, as a result, is said to help reverse the problems caused by industrial farming that can have a negative impact on the biodiversity of a region caused by soil erosion, water pollution and an increase in atmospheric carbon dioxide. 

For every six trees planted because of that particular restaurant, Lightspeed says that it will credit the restaurateur to save on their subscription with Lightspeed. 

Lightspeed’s head offices in Montreal. Photo: Lightspeed

Since it was piloted in the UK, Lightspeed’s Carbon Free Dining initiative has resulted in over 1-million trees having already been planted. On Friday Lightspeed announced intentions to plant a further 3,000 trees in Africa, which has been hit hard by industrial farming. Lightspeed also says that it will also be incentivizing its employees to participate in their Sustainability Week LinkedIn Learning Challenge to learn more about sustainability by completing a pre-set course.

Lightspeed was founded in 2005 by Dax Dasilva, beginning with four employees working out of a Montreal apartment. Lightspeed has seen remarkable growth — the company is now publicly traded and is a force to be reckoned with in the world of retail as well as restaurants and other services as Lightspeed offers various options in the omni-channel world. Dasilva recently stepped down as CEO with JP Chauvet taking over the reigns — Dasilva himself is working on various environmental initiatives which includes millions of dollars in philanthropy. 

The first Earth Day was observed on April 22, 1970, when 20 million people across the US celebrated by filling their local streets, parks and auditoriums to demand a healthy, sustainable environment. They were concerned about their cities laden with smog, polluted rivers, rampant pollution, and other environmental hazards.

Canadian Retail News From Around The Web For April 22nd, 2022

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Retail Insider
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Canadian Retail News From Around The Web

News at a Glance

Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past 24 hours.

L.L.Bean Announces Plans to Open 5 More Canadian Stores

By
Craig Patterson
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Exterior of Oakville L.L.Bean store. Photo: L.L.Bean

U.S.-based outdoor specialty retailer L.L.Bean has announced that it will open five more Canadian stores this year as the company continues with its Canadian expansion into new markets. Each of the five stores will be firsts for the Moncton, Kitchener, Kingston, Edmonton and Niagara Falls regions.  

The retailer says that it’s bullish on growth after seeing its most successful fiscal year in its 110-year history. That includes a 14% increase in revenue company-wide and 20% growth in online sales for L.L.Bean in Canada. 

Toronto-based Jaytex Group has the exclusive license for L.L.Bean stores and wholesale distribution in Canada. Brokerage Oberfeld Snowcap represents L.L.Bean in Canada for its expansion under the direction of Andrew Laudenbach, who so far has negotiated leases for nine L.L.Bean locations in Canada that are already open as well as the five new locations opening in 2022 that will include the following: 

  • Moncton, New Brunswick at CF Champlain – Opening August 2022
  • Kitchener, Ontario at The Boardwalk – Opening September 2022
  • Kingston, Ontario at Cataraqui Centre – Opening October 2022
  • Edmonton, Alberta – Opening Fall 2022
  • Niagara Falls, Ontario – Opening Fall 2022

Each L.L.Bean will offer an assortment of men’s, women’s and kid’s active and casual apparel, outerwear, footwear, gear and equipment. 

The Moncton location will be the second for L.L.Bean in the Canadian Maritimes, following the opening of a store last year at Dartmouth Crossing near Halifax. CF Champlain is considered to be the leading shopping centre for the region. 

Interior of the new Don Mills L.L. Bean store. Photo: L.L. Bean
Interior of the new Don Mills L.L. Bean store. Photo: L.L. Bean

The Boardwalk in Kitchener is a big box centre, while the Cataraqui Centre in Kingston is a traditional enclosed shopping centre anchored by Hudson’s Bay. L.L.Bean will occupy part of the former Sears space at Cataraqui Centre according to a source.

The exact locations of the Edmonton and Niagara Falls L.L.Bean stores have yet to be released, and both will open later next fall. 

L.L.Bean entered the Canadian market in 2018 with an online store and opened its first brick-and-mortar location in Oakville Ontario in August of 2019. At the time, plans were in place to eventually open about 20 stores across Canada. L.L. Bean currently has nine stores in the provinces of Ontario, British Columbia, Alberta and Nova Scotia.

Last year was a successful year for L.L.Bean in Canada. “In 2021, we successfully opened four L.L.Bean retail stores across Canada, expanding our reach into Victoria and Vancouver, Calgary, and Dartmouth, N.S. We have seen strong demand for our selection of outdoor footwear, apparel, equipment and gear, exemplifying Canadians’ love for the outdoors,” said Howie Kastner, president of Jaytex Group. 

“The addition of five new locations will greatly help us reach markets where interest in L.L.Bean is already high, as demonstrated through strong e-commerce sales. We are excited to open in each of these communities and increase our ability to serve more customers in Canada.” 

L.L. Bean at Amazing Brentwood

Charlie Bruder, L.L.Bean Vice President and General Manager of International and Wholesale, added, “We’re grateful to our Canadian customers who continue to look to L.L.Bean to outfit them for adventures of all kinds. As a heritage outdoor brand, our focus has always been to ensure our customers are equipped with durable, quality goods they can depend on for years to come. By joining more communities across Canada, we’ll ensure even more people are outfitted to experience the restorative power of time outside.” 

Family-run L.L.Bean was founded by Leon Leonwood Bean in 1911 when he developed the brand’s flagship product, the Maine Hunting Shoe, which combines rubber bottoms with leather uppers to ensure one’s feet remained dry while hunting. L.L.Bean was officially founded in 1912 and has been in business for nearly 110 years.

The company’s original Maine flagship complex has been open since 1917, spanning 220,000 square feet and is open 24 hours a day, 365 days a year. Last year for the first time in its history and due to the pandemic, the flagship had been operating on reduced hours temporarily. The motivation behind L.L.Bean’s always-on hours was to accommodate visiting sportsmen who would drive all night and wanted an early start the following day.

In addition to the Maine flagship, L.L.Bean operates over 50 stores in the US and also has a multi-store presence in Japan. 

Small Businesses in Canada Continue to Struggle Under Mountains of Debt and Challenging Business Environment: CFIB

By
Mario Toneguzzi
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COVID debt, rising costs and lack of sales pose major challenges to a small business recovery in Canada, says the national organization representing the sector.

According to the Canadian Federation of Independent Business, only 40 per cent of small businesses are back to normal revenues for this time of the year and only 27 per cent say they are fully recovered.

On top of that is a mounting debt load which small businesses had to take on to get them through the COVID19 period with its lockdowns and other public health safety measures.

Dan Kelly

“Two-thirds of small businesses (65 per cent) have had to take on debt, at an average of $160,000, just to survive the past two years,” said Dan Kelly, President and CEO of the CFIB. “For almost 900,000 business owners, up to $60,000 of this debt is in the form of a government-backed Canada Emergency Business Account loan. 

“The 2022 budget missed an opportunity to forgive a larger portion of these loans for the most deeply affected small businesses.”

The CFIB represents about 100,000 small businesses across all sectors throughout the country.

Kelly said over the past two years at no point had over 40 per cent of small businesses been able to bounce back to normal levels of revenue.

“We thought that now that restrictions have been largely lifted, particularly at the provincial level, that we would see more of a rebound and more businesses inching back to normal operations. I was really surprised, depressed in fact, to see, while we are about 40 per cent, it’s now 42 per cent of businesses that are back to normal levels of revenue. Imagine that. Less than half of Canadian businesses are at normal levels of revenue for this time. Most of our members are telling us they have not had a normal month of sales in over two years,” said Kelly.

Type Books at 883 Queen Street West (Image: Dustin Fuhs)

“And when you add to that the staggering debt level that they’ve taken on through the pandemic, the fact that sales are not back and of course costs are rising through the roof, this is really creating some terrible math for small business owners.”

Kelly said a couple of factors are contributing to the continued situation where normal sales and revenue have not returned for small business owners.

“While the restrictions are lifted, the psyche on the part of consumers has not yet changed. Many consumers, especially with this most recent round of worry about BA.2 (the Omicron variant of the Coronavirus), are continuing to stay home,” he said.

“There’s no question it’s having an impact on small business. So that’s chapter number one to explaining what’s going on. Secondly, there seems to be a disconnect between what’s happening at the larger economic level. The headline economic numbers for the country are good. Job creation numbers are good. GDP growth has been quite positive. But that isn’t telling the whole story.

Big Rock Brewery in Liberty Village (Image: Dustin Fuhs)

“When you look at the sectors that were most deeply affected, retail, hospitality, the service sector, arts and entertainment, these businesses which of course are a huge chunk of the small business community, they are still super far away from normal. 

“The final piece that I’ll mention is of course we all have to admit that there are likely some permanent changes in economic activity that have happened over the course of the pandemic. The growth of online shopping and virtual activities. Offices not coming back yet in large numbers. Workers not coming back in downtown cores. So there are some questions as to how much of this is temporary and how much of this is permanent. And that we haven’t yet figured out as to how significant those factors are.”

Kelly said the fact only 27 per cent of small business owners have fully recovered is “really low and worries me.”

“When you look at the debt levels that businesses have taken on, even those that are back to normal, the average small firm has taken on $160,000 in COVID-related debt – $60,000 of that typically is in the form of a CEBA (Canada Emergency Business Account) loan – a government-backed loan, $100,000 of that is other debt that they just inherited either in lines of credit or borrowing from family members, cashing in RSPs, whatever,” said Kelly.

“When we look at that debt burden, a business actually doesn’t have to just go back to normal but if they’re going to have to repay that, they’ve got to go above normal to be able to try to get the debt retired and we’re not seeing signs of that happening, certainly not happening any time quickly.”

And that’s one of the reasons the CFIB is pushing so hard for the federal government to forgive a larger portion of those loans to give small businesses a little more room to operate. The CFIB is calling on the federal government to help the hardest hit SMEs deal with their COVID-related debt by increasing the forgivable portion of their CEBA loan to at least 50 per cent and extending the repayment deadline beyond December 2023. It is also asking the government to help new businesses that were excluded from the CEBA program and to forgive a portion of other federal COVID-19 loan programs like HASCAP (Highly Affected Sectors Credit Availability Program).

Despite the long road back to normal, all major COVID support programs end on May 7, said the CFIB. A huge number of small firms are also facing major challenges with rising costs for energy, inputs and insurance (90 per cent) or hikes to government-imposed costs for carbon and payroll taxes (82 per cent). This may explain why almost three-quarters (72 per cent) of small business owners did not find the measures in the 2022 federal budget particularly helpful for their situation, said the national organization.

“We understand the government wants to close the door on many of these programs. They’re super costly. I want to end subsidies too, but if we time it too early before businesses are fully recovered we run the risk of having a bunch of failures and that’s why we need our focus at CFIB on this debt issue. If we can at least get the burden of debt off the shoulders of business owners, we believe that more of them would have a fighting chance of survival,” said Kelly. 

Now Hiring at Ideal Coffee & Wine on Ossington (Image: Dustin Fuhs)

He said small business owners also need some help from government on the cost side of the equation.

“Every single line on a business budget is under pressure. Not all of that is controlled by government but some of it is. The shortage of labour. Giant issue right now. Wage levels are going up through the roof. Many provinces have added to the problem by increasing minimum wages at this time, increasing payroll taxes like EI and CPP, those are going up. Those we believe should be frozen,” said Kelly.

“Energy costs are a huge worry on the part of all of us and small business owners. The government decided to go ahead with carbon tax increases on April 1. We believe that was a bad idea. We have been pleased to see a few provinces, Ontario and Alberta announcing an end to or a reduction in the fuel tax. That certainly will help a little bit. We should be seeing more of that across Canada.

“But the other thing the federal government had promised but didn’t deliver on was lower credit card processing fees. These are huge fees. More of our transactions these days are on credit cards, not paying the cash, cheques or even debit right now. As a result of that, the government did promise business owners that they would work with VISA, Mastercard and the banks to lower these processing fees. That was promised in 2019. Here we are in 2022, more consultation, not any action.”

Walmart Invests Further in Canadian Operations with Opening of State-of-the-Art West Coast Distribution Centre: Interview

By
Mario Toneguzzi
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Walmart Canada distribution centre in Surrey, B.C. (Image: Walmart Canada)

Walmart Canada has opened in Surrey, BC, what the retail giant describes as its most advanced grocery distribution centre, a state-of-the-art facility with leading-edge technology features and a focus on sustainability.

The 300,000-square-foot, $175-million facility is part of Walmart Canada’s $3.5 billion investment to generate significant growth and speed up the flow of products through the company’s supply chain across Canada.

Horacio Barbeito

It is the company’s first distribution centre in British Columbia. It has 17 across Canada.

“We’re incredibly proud of our new sustainability-focused and technology-enabled distribution centre in Surrey. Facilities like this one are an investment in the community, our associates and customers and allow our suppliers to get their products into the hands of Canadians across the country even faster,” said Horacio Barbeito, President and CEO, Walmart Canada, in a statement. 

“We continue to strengthen our world-class supply chain to ensure Canadians have access to the products they need in a way that’s fast, efficient and minimizes our impact on the environment so that they can live better.”

Walmart Canada distribution centre in Surrey, B.C. (Image: Walmart Canada)

John Bayliss, Executive Vice President, Chief Transformation Officer, Walmart Canada, said Surrey is the most technologically-advanced facility for Walmart in Canada and is also the future hub for its electric fleet.

John Bayliss

“This is only the start for what Canadians can expect from Walmart: we’re transforming how we enable our supply chain and associates with leading-edge technologies and innovations.

“The reason for getting into the Lower Mainland first and foremost is really getting closer to the customers in British Columbia. We’ve been supplying grocery and frozen dairy into British Columbia out of Calgary. And you can imagine, that supply line the number of kilometres on the road, getting into Lower Mainland, getting into British Columbia, is really important for speed and also having availability where it counts in the major centres in BC. That was the real driving force behind this program. 

“One of the challenges historically in British Columbia is the availability of land and also the cost of land. This is where technology has unlocked that equation for us finally where by building up we’ve been able to use a smaller footprint. So the site’s 300,000 square feet. A traditional DC of this class would be closer to the half a million square foot mark. And I think we’re on about 30 acres of land, give or take a few acres. We’d need to double that if we’re building the conventional way. So technology here has really unlocked DC for us and that’s why now.”

MP Kerry-Lynne Findlay, South Surrey, Minister Bruce Ralston, John Bayliss, EVP, Transformation Officer, Walmart Canada, Mayor of Surrey Doug McCallum, MLA Garry Begg, Jason Evans, VP, International Realty & Supply Chain, Walmart.

Bayliss said the Surrey Grocery Distribution Centre will employ more than 250 people once fully operational and will provide ambient (pantry items), fresh and frozen grocery goods to 45 Walmart stores in British Columbia. 

He added that distribution through the facility will reduce the company’s long-haul trips from Alberta and directly reduce its carbon footprint, supporting Walmart’s journey to becoming a regenerative company.

“We are just incredibly proud of the building because it is the most technologically-advanced site that we’ve created in Walmart international and more certainly of any of our distribution centres here in Canada,” said Bayliss.

Walmart listed the following key features of the new distribution centre:

  • Capable of processing 150,000 order picks per day that will be delivered to 45 Walmart stores across British Columbia;
  • A future hub for Walmart’s electric fleet, including semi trucks and a fully-electric yard truck fleet;
  • Will employ more than 250 people once fully operational and created more than 300 construction and engineering jobs during the building phase;
  • Built vertically, optimizing the land use with racking up to 66 feet;
  • Large windows throughout the facility promote natural light in the perimeter; and 
  • Outdoor park and picnic area provides an opportunity for associates and community members to enjoy nature directly outside of the facility.
Walmart Canada distribution centre in Surrey, B.C. (Image: Walmart Canada)
Walmart Canada distribution centre in Surrey, B.C. (Image: Walmart Canada)

Walmart said key sustainability features include:

  • LED lighting and intelligent controls, which can reduce energy consumption by 70 per cent;
  • Efficient refrigeration systems using environmentally preferable CFC free carbon dioxide (CO2);
  • HVAC system designed to reclaim heat rejected from the refrigeration system and leverage it in radiant under floor heating;
  • On track to becoming a zero-waste facility;
  • Special fans to maintain temperature throughout the facility;
  • Natural filtration systems for water to protect the local waterways and fish hatchery in the vicinity; 
  • Recycled content in building materials, including recycled glass countertops in the lunchroom; and
  • 18,000 new plants have been included on-site.

“This modern facility was built vertically, using about half of the land mass that would be required for a traditional equivalent facility, and directly reducing its overall carbon footprint. This is made possible by including cutting-edge technology from WITRON. Incorporating this technology makes it possible to complete as many as 150,000 order picks per day, improving the efficiency and speed of distribution while requiring less physical effort from associates,” said the company.

Bayliss said WITRON is helping Walmart drive great efficiencies, great production and really helps the people employed at the distribution centre serve the stores better.

“Also, it’s a sustainable site. We’ve designed this with the aim of having this be ultimately a zero waste facility and so there’s features like the LED lighting, we’re using efficient refrigeration systems . . . We’ve got a natural filtration system for water that helps the surrounding ecosystem,” he said.

Walmart Canada distribution centre in Surrey, B.C. (Image: Walmart Canada)
Jason Evans, VP, International Realty & Supply Chain, Walmart, John Bayliss, EVP, Transformation Officer, Walmart Canada, Karl Hoegen, CEO of WITRON, North America, Patricio Dallan, SVP, Supply Chain, Walmart Canada

“An interesting thing is that the building incorporates recycled content . . . We’ve designed it in a way with an eye to sustainability because ultimately we have a goal to be a much more regenerative company.”

When asked if there could be more distribution centres in BC in the future, Bayliss said: “If we’re looking at our future network, BC is a rapidly growing market for us. We’re certainly going to keep our eye on it. We are spending a lot of time now investing in our stores in British Columbia which is part of our $3.5 billion investment (in Canada). We have a number of stores in British Columbia that we’re upgrading right now and included in the upgrades is renovation to help their omni fulfillment capabilities. So using those stores as distribution hubs as well.”

Walmart has been in British Columbia for 28  years and has 47 stores and the distribution centre, employing 12,000 people. In 2021, Walmart invested more than $16 million in store upgrades in British Columbia.

The retailer has more than 400 stores in Canada and more than 100,000 employees.

Canadian Retail News From Around The Web For April 21st, 2022

By
Retail Insider
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Canadian Retail News From Around The Web

News at a Glance

Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past 24 hours.

Retail Insider and Progress Retail Announce Exclusive Content and Insights Partnership

By
Retail Insider
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Retail Insider Media Ltd. is excited to announce our exclusive partnership with Progress Retail. As a leading Retail Operations and Employee Experience (EXP) platform in Canada, Progress Retail will work with Retail Insider to curate content specifically derived from its unique user and anonymized client insights, as well as bring its renowned and personalized retail education to retailers across the country. 

“What Progress Retail has brought to the market is far more than just another tech platform. It’s an end-to-end solution for retailers to engage employees, decrease turnover, and connect the entire business under one platform,” said Retail Insider founder, CEO and Co-Editor-in-Chief, Craig Patterson. 

“The breadth of what Progress Retail can provide has never been needed more by retailers with the drastic changes to the landscape over the past two years with the pandemic,” continued Patterson.

“It’s been a pleasure collaborating with Craig and Retail Insider the past few years, and we’re honoured to kick off this partnership in conjunction with our continued growth and focus in Canada,” said Ray Riley, Progress Retail’s CEO.

As retailers push more and more change into the innovation pipeline, it culminates at the store level, and therefore employee experience is impacted if the best tools are not available to help embed the change successfully to maximise benefit from investments.

Andrew Smith, author of Retail Innovation Reframed and advisor to Progress Retail says “the single biggest focus for every retailer right now must be the ability to change at pace. There is no point creating bright and shiny new experiences for your customers if your store teams aren’t coming along on the journey. A focus on their experience and their learning journey is key”. 

A few of the challenges Progress is helping retailers across the world solve every day:

  • The show floor is the heart of every retail operation. Progress Retail ensures an engaged and connected employee experience that allows for consistency and improved outcomes in every execution from merchandising to campaigns, to new technology.
  • Progress Retail helps you retain talent, execute on change quicker and more effectively, and ensures your frontline teams are highly capable and up to date with dynamic, role-tailored learning experiences.

To learn more about Progress Retail, visit this link.

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