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Metro transforms supply chain with $1 billion distribution centre

Jonathon Brown Jonathon Brown, The Market Online
0 Comments| October 29, 2024

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  • Metro (TSX:MRU) has officially opened the doors to its state-of-the-art automated distribution centre for fresh products in Toronto
  • This marks the culmination of a nearly $1 billion investment aimed at modernizing its supply chain. This milestone signifies the completion of a comprehensive seven-year project initiated in 2017
  • The modernization project has seen significant investments across multiple locations, including the establishment of a new automated fresh and frozen distribution centre in Québec
  • Metro stock last traded C$82.40 at per share

Metro (TSX:MRU) has officially opened the doors to its state-of-the-art automated distribution centre for fresh products in Toronto.

This marks the culmination of a nearly $1 billion investment aimed at modernizing its supply chain. This milestone signifies the completion of a comprehensive seven-year project initiated in 2017.

The modernization project has seen significant investments across multiple locations, including the establishment of a new automated fresh and frozen distribution centre in Terrebonne, Québec, which became operational in 2023. Metro has also expanded its fresh produce distribution centre in Laval, Québec, and constructed two new automated distribution centres in Toronto. The frozen facility in Toronto opened in 2022, followed by the fresh facility, which is now fully operational.

With the new Toronto Fresh distribution centre, Metro’s supply chain is set to achieve several key improvements:

  • Enhanced service: The new system aims to improve service to Metro’s store network with greater precision and reduced handling time.
  • Efficiency gains: The modernization intends to provide efficiency gains throughout the supply chain, enabling Metro to be more competitive.
  • Order fulfillment precision: Greater precision in order fulfillment hopes to improve in-stock positions in stores.
  • Customer experience: Customers can expect a greater variety and freshness of products, enhancing their shopping experience.
  • Sustained growth: The modernized supply chain is designed to support Metro’s anticipated growth.

“Our new automated distribution centres as well as the expansion of one of our facilities represent a substantial investment in Metro’s future,” Eric La Flèche, president and chief executive officer of Metro Inc said in a news release. “The transformation of our supply chain will provide capacity for future growth and efficiency, strengthen our market position and generate new opportunities for our employees.”

Metro is a grocery and pharmacy company in Québecand Ontario employing more than 95,000 people. Its network of 975 food stores includes Metro, Metro Plus, Super C and Food Basics, while its 645 drug stores fall under the Jean Coutu, Brunet, Metro Pharmacy and Food Basics Pharmacy banners.

Metro stock (TSX:MRU) last traded C$82.40 at per share, up 20.13 per cent year-to-date.

Join the discussion: Find out what everybody’s saying about this stock on the Metro stock forum, and check out the rest of Stockhouse’s stock forums and message boards.

The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.

(Top image of the Fresh Distribution Centre in Toronto via Metro Inc.)




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