Empire Company Limited is shutting down two grocery e-commerce distribution facilities in Alberta.

The closures are part of a broader effort to improve near-term earnings while reshaping the Stellarton, N.S.-based giant’s online-grocery strategy.

The parent of Sobeys and other prominent supermarket chains said the immediate wind-down of a customer-fulfillment centre (CFC) in the Calgary area and a smaller support facility in Edmonton, along with a previously announced pause on development of its Vancouver-area facility, is expected to generate about $95 million in annualized operating income by fiscal 2027. The move will also result in approximately $750 million in non-cash impairment and related cash charges, including right-of-use assets, to be recorded in the third quarter of fiscal 2026, reflecting the underperformance of parts of its e-commerce network.

“We remain highly committed to grocery e-commerce in Canada and on continuing to make online shopping more convenient for our customers, while delivering immediate bottom-line improvements to our e-commerce business,” said Pierre St-Laurent, president and CEO of Empire.

The company said its Alberta operations failed to meet financial expectations, largely because the provincial online-grocery market has grown more slowly and remains smaller than initially forecast. Customers in Western Canada will continue to be served through third-party delivery partners, and the closures are not expected to materially affect same-store sales growth.

In contrast, the company will continue to expand its Voilà operations in Ontario and Quebec, supported by its customer fulfillment centres in the Greater Toronto and Montreal areas. Empire said those facilities are seeing steady growth and remain central to its e-commerce offering, supported by improving online penetration and its partnership with Ocado.

Empire is also planning to broaden its third-party delivery reach through a new partnership with DoorDash, which is expected to roll out in the coming months. The collaboration is intended to expand access to grocery essentials through one of Canada’s largest local commerce platforms and builds on the company’s existing third-party relationships, said Empire.

“Customers in Ontario and Quebec love Voilà and, while difficult, the decisions we have made related to our CFC network in Western Canada will help ensure the long-term growth and profitability of our e-commerce business,” said St-Laurent. “Our focus remains on thrilling our customers while giving them even more reasons to shop our banners through Voilà and third-party marketplaces across the country.

“This is just the beginning of the next chapter in reshaping our e-commerce strategy as we respond to the evolving needs and expectations of our customers.”

Voilà’s offerings in Alberta were short-lived. The service expanded into Alberta in June 2023, delivering products from Empire’s Safeway, Sobeys, Chalo! FreshCo and other businesses to Calgary, Edmonton, and their surrounding areas.

Pictured: Voilà employee in 2023, when the delivery service expanded into Alberta.

Photo: CNW Group/Empire Company