Calgary Co-op to end FCL procurement
August 8, 2019
This week, Calgary Co-operative Association representatives advised FCL of their decision to discontinue the procurement of all products for their grocery stores from FCL effective April 2020.
“Working together is at the heart of Co-op, which is why this news is so disappointing,” said Scott Banda, CEO of Federated Co-operatives Limited. “It’s sad to see them moving away from the co-op family they’ve helped build, and that has supported them in the past, but our Senior Leadership Team and Board of Directors had prepared for this possibility and we’re now evaluating impacts and planning our next steps.”
The evaluation will focus on impacts to other local co-ops across Western Canada as well as the hundreds of positions at FCL’s distribution centres in Calgary and business support positions that are largely dedicated to serving Calgary Co-op and its grocery business.
“This is going to have a short-term impact on the Co-operative Retailing System but FCL remains committed to ensuring that local Co-ops continue to provide high-quality food store services in their communities. As a Co-operative Federation, we have a long history of working collectively to overcome challenges and we’ll see this through together as we have for over 90 years,” said Banda.
Calgary Co-op’s decision is related strictly to grocery procurement. It remains a member of FCL, part of the Co-operative Retailing System and will continue to obtain its fuel supply from FCL.