PET Pet Valu Holdings Ltd

670,000 sq. ft, state-of-the-art Brampton facility is setting the new standard for pet specialty distribution capabilities in Canada

MARKHAM, ON, Sept. 13, 2023 /CNW/ - Pet Valu Holdings Ltd. ("Pet Valu" or "the Company") (TSX: PET), the leading Canadian specialty retailer of pet food and pet-related supplies, announced today the official opening of its state-of-the-art 670,000 sq. ft. distribution centre in Brampton, Ontario ("GTA DC" or "the Facility"). Representing a key milestone in the Company's nationwide $110 million supply chain transformation, the GTA DC will bring unprecedented scale and automation to Canada's pet sector as the largest distribution centre and robotics automation installation dedicated to serving the pet specialty industry.

"Today marks a significant accomplishment for our teams, whose meticulous planning and tireless efforts have enabled Pet Valu to take a big step towards building Canada's strongest pet specialty distribution network" says Richard Maltsbarger, President and Chief Executive Officer of Pet Valu. "As the largest pet specialty facility in Canada, our GTA DC will benefit multiple aspects of our business through capacity to support future growth, efficiencies to accelerate speed to customers, tailored facilities to support employees, and job creation to support the communities we serve. We look forward to enhancing distribution services to our corporate and franchised stores in Central and Eastern Canada, including into our Chico banner in Quebec."

Built by Orlando Corporation, Canada's largest privately-owned industrial real estate developer and landlord, the GTA DC is approximately  the size of 11 football fields and will bring up to 500 skilled jobs to Brampton. Highlights include a café, nursing room, prayer rooms, training room, driver's lounge and open concept office space. The Facility also employs advanced health and safety features, such as ergonomically designed workstations and equipment.

Starting in the first half of 2024, Pet Valu plans to introduce automation capabilities into the GTA DC, with the installation of Canada's largest goods-to-person robotics installation dedicated to pet specialty products. The design will have the capability to process orders same day, while improving pick productivity by more than 50% and reducing the overall footprint compared to a traditional manual picking solution. The Facility's warehouse processes, systems and automation are expected to reduce costs per case and drive productivity improvements as well as provide improved product availability, faster order processing, and overall customer service levels for stores and eCommerce customers.

"Our GTA DC establishes a new benchmark for pet specialty distribution capabilities in Canada. In addition to providing a modern supply chain network that can supply our stores with flexible, reliable and accurate service, and world-class on-shelf availability in store and online, the facility supports the individual needs of our diverse workforce," says Nico Weidel Chief Supply Chain Officer at Pet Valu.

Pet Valu expects the GTA DC to be fully operational by the first half of 2024, following a phased transition period. The Facility is currently commencing receipt and shipment of bulk items such as dry pet food and litter. Once installation and setup of automation equipment is complete in early 2024, receipt and shipment of piece-pick items such as toys and collars will transition over to the GTA DC. The Company will scale down use of its legacy distribution facilities and third-party storage space in the Greater Toronto Area throughout these phases.

The GTA DC serves as one element of Pet Valu's nationwide supply chain transformation strategy. Commenced in 2022, the Company plans to invest $110 million over four years to modernize its distribution networks in the Greater Toronto Area, Vancouver and Calgary. Progress has already begun in Vancouver, where Pet Valu has signed a lease for a new, near-complete facility, targeting start-up in mid-2024.

Pet Valu is Canada's leading retailer of pet food and pet-related supplies with over 750 corporate-owned or franchised locations across the country. For more than 40 years, Pet Valu has earned the trust and loyalty of pet parents by offering knowledgeable customer service, a premium product offering and engaging in-store services. Pet Valu's neighbourhood stores offer more than 7,000 competitively priced products, including a broad assortment of premium, super premium, holistic and award-winning proprietary brands. To learn more, please visit: www.petvalu.ca.

This news release contains "forward-looking information" within the meaning of applicable securities legislation, which reflects the Company's current expectations regarding future events, including the Company's expectations regarding the timeline for the Facility to be fully operational and for the introduction of automation capabilities, the expected impact of the Facility, including pick productivity improvement and job creation, and the amount of investment to be made by the Company in its distribution network. Forward-looking information is based on a number of assumptions, and is subject to a number of risks and uncertainties, many of which are beyond the Company's control. Such risks and uncertainties include, but are not limited to, the factors discussed in the "Risk Factors" section of the Company's annual information form dated March 6, 2023. Actual results could differ materially from those projected herein. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained in this news release is provided as of the date of this news release and Pet Valu does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws.

SOURCE Pet Valu Canada Inc.