Grocer and retailer Metro Inc. (MRU-T) has inaugurated the final facility in its $1-billion supply chain modernization initiative, with its 567,000-square-foot automated Toronto fresh produce distribution centre (DC) now fully operational.

The modernization has taken place over seven years, and includes the development and/or expansion of four distribution centres in Quebec and in Toronto as well as other smaller projects.

"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 the announcement. "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."

The newest Toronto facility represents an investment of about a half-billion dollars.

Initiated in 2017, the project has included a new 600,000-square-foot automated fresh and frozen distribution centre in Terrebonne, Que., that opened in late 2023, a 50,000-square-foot expansion of the fresh produce distribution centre in Laval, Que., and the construction of two new automated distribution centres in Toronto – a frozen facility that opened in 2022, and the opening of the fresh facility.

Robotics drive new distribution centres

The automated distribution centres are operated utilizing state-of-the-art robotics and inventory management technology provided by Metro's automation partner, Witron. The German company is an international leader in automation in the food distribution sector, and has been working with Metro since the modernization program began.

"The opening of Metro's Toronto Fresh DC represents a major milestone," Dan Gabbard, vice-president of logistics and distribution, Metro Inc, said in the announcement. "This facility incorporates modern technology that boosts our efficiency as a retailer, ensuring we can deliver high-quality food products to our stores more efficiently, thereby enhancing freshness and quality."

Metro says the modernized supply chain will:

• improve service to Metro's store network with greater precision and reduced handling time;
• provide efficiency gains throughout the supply chain that will enable Metro to be more competitive with its major industry peers;
• offer greater precision in order fulfillment, which will improve its in-stock position in stores;
• improve customer experience through greater variety and freshness; and
• sustain anticipated growth.

Expanding store network

The company is also continuing to expand and modernize its store network as competition remains intense between major players in the grocery and pharmacy sectors. During its fiscal 2024, it planned to open one new Metro location, eight new discount banners (including two conversions from other company banners), and renovations at over 25 locations.

Earlier this month, Metro also announced the expansion of its Moi Rewards loyalty program into Ontario and New Brunswick starting Oct. 24. The program had originally been operating only in Quebec, where it was approaching 2.5 million members at the end of 2023.

The 2024 Leger Wow Survey ranked Moi as the most widely used loyalty program in Quebec, with 79 per cent of Metro customers actively engaging with the program.

“Our goal is to help Canadians save by becoming the most personalized and relevant loyalty program. The Moi Rewards program will be available in eight banners and more than 1,175 stores across Ontario, Quebec and New Brunswick,” Alain Tadros, vice-president and chief marketing officer and digital strategy, said in that announcement.

Metro is one of Canada’s largest grocery and pharmacy retailers, operating mainly in Quebec and Ontario with annual sales of more than $20 billion. The company employs more than 97,000 people.

It operates as a retailer, franchisor, distributor, manufacturer, and provider of eCommerce services, owning or servicing a network of some 980 food stores under several banners including Metro, Metro Plus, Super C, Food Basics, Adonis and Première Moisson. It also has 640 pharmacies primarily under the Jean Coutu, Brunet, Metro Pharmacy and Food Basics Pharmacy banners.