CALGARY, ALBERTA - Sobeys is buying a 1.3 million square foot Target distribution center for $50 million, reports The Calgary Herald, and is the product of Target Canada divesting its interests as it exits the country. The deal is expected to close this month.
“We knew automation was an option we were exploring in Alberta. So we were looking at an option in north and southern Alberta. This one obviously became available... This one ended up being the right option for Sobeys,” said Keri Scobie, Communications Manager for Sobeys West.
While Scobie did specify that the facility will be used primarily for dry groceries, the purchase of the large grounds and expansion in automation is a large move for the chain from a retail perspective.
The distribution center is currently set to be operational by mid-2017. It is too early to tell how many people will be employed at the facility, as the company has just received court approval for the purchase, but the facility will be used to serve all of the company’s stores in Alberta, Saskatchewan and Manitoba.
David Kalinchuk, Economic Development Manager at Rocky View County, said the county is pleased that Sobeys is going to take over the facility.
“The whole transportation, warehousing, logistics sector has really taken off for Rocky View as you can imagine. CN Rail being probably one of the largest and most significant of those investments with that Calgary Logistics Centre in Conrich,” said Kalinchuk. “So Sobeys, of course, having the depth and breadth in their retail really it’s a great fit. It involves additional investments as well, specific to the food side. That’s fantastic. We take what is a fairly unique property in its size with a good user that will be adding to that investment.”
Prior to being bought by Sobeys, the building was the distribution center for about one-third of the 124 Target stores across Canada.
