- Online grocer Goodfood (FOOD) has signed a lease for a 45,000 square foot facility in Montreal to facilitate its growth in the region
- The new centre is the company’s seventh in Canada, bringing its total delivery fulfilment capacity to almost 590,000 square feet
- It will focus on expanding Goodfood’s private label capabilities, as well as the facilitation of same-day delivery
- The company recently secured C$40 million in financing to fund expansion and the build-out of its same-day delivery service
- Goodfood (FOOD) is currently down 1.29 per cent and is trading at $6.91 per share
Online grocer Goodfood (FOOD) has signed a lease for a 45,000 square foot facility in Montreal to facilitate its growth in the region.
It will serve to expand the company’s footprint and capabilities in the pivotal urban centre and brings Goodfood’s dedicated operational facilities to a total of seven across Canada, representing almost 590,000 square feet of delivery fulfilment capacity.
Neil Cuggy, President and Chief Operating Officer of Goodfood, said the with the sustained demand for e-commerce grocery and meal solutions, the company is fortunate to have found a facility to support its expansion efforts.
“The 45,000 square feet facility will focus on expanding our private label grocery fulfilment capabilities and serve as a steppingstone to offering same-day delivery to a larger customer base.
“The facility has the required infrastructure to be operational shortly after the lease takes effect in the early Fall,” he added.
Goodfood’s successful leasing of the fulfilment centre comes off the back of a C$40 million bought deal public offering completed on August 5, in which the company issued 5.79 million common shares at a price of $6.05 each.
At the time, the company said it intends to use a significant portion of the proceeds to fund operational projects that will facilitate the build-out of its same-day delivery service through the acquisition of fulfilment technology and automation equipment.
Jonathan Ferrari, CEO of Goodfood, noted that a shift in consumer behaviour has led to an increased demand for grocery delivery.
“This change in consumer habit has transformed how Canadians plan their meals and shop for groceries, and it has motivated us to offer our services with more flexibility while also creating jobs in the community.
“This medium-term lease puts our operations and company in a great position to respond to Canadians’ growing appetite for online grocery delivery and cements our position as a leader in the industry,” he said.
Goodfood (FOOD) is currently down 1.29 per cent and is trading at $6.91 per share at 11:32am EDT.