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Calgary Co-op ends FCL procurement

Retailer says it must differentiate itself in an increasingly competitive market

Effective April 2020, Calgary Co-op will no longer purchase products for its grocery stores from Federated Co-operatives Limited (FCL), in a move it says will "better deliver choice and exceptional experiences to our members."

In a statement, Calgary Co-op says its food business operates in an increasingly challenging and competitive market. Differentiating its business will allow it to "reflect our members' needs."

"This transformation will involve working with a new food distribution partner; we will continue to work with an increasing number of local producers and growers to ensure more local products are on our shelves," the statement reads.

FCL, which is collectively owned by retail co-operatives across the Prairies, says it was advised of Calgary Co-op's decision last week. CEO Scott Banda calls the news "disappointing," but says it is a move the senior leadership team and board of directors was anticipating.

"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," says Banda.

Calgary Co-op’s decision is related strictly to grocery procurement. It remains a member of FCL and will continue to obtain its fuel supply from FCL.

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