September 9, 2024

Pet Valu Continues Supply Chain Transformation with Official Opening of Distribution Centre in British Columbia

Pet Valu Holdings, the leading Canadian specialty retailer of pet food and pet-related supplies, announced today the official opening of its 350,000 sq. ft., LEED-gold certified distribution center in Surrey, British Columbia (“Surrey DC” or the “Facility”). The Surrey DC, which is three times the size of Pet Valu’s existing warehouse in the province, is a key component of Pet Valu’s more than $100 million supply chain transformation and unlocks the Company’s continued growth in Western Canada while providing enhanced service to existing stores in the region.

“Our new Surrey DC represents the second pillar of our supply chain transformation, and another key achievement of our cross-functional teams, whose careful balance of rigorous planning and iterative learning have kept this multi-year project on time and on budget,” said Richard Maltsbarger, CEO of Pet Valu. “This new Facility embodies Pet Valu’s commitment to Our Four Paws service model, designed to emphasize safety, compassion, expertise and efficiency. Following several years of heightened investments, we are now entering the final stretch of our transformation, after which we will have Canada’s strongest pet specialty distribution network as the backbone to propel Pet Valu’s continued profitable growth throughout the next decade.”

The Surrey DC is the second largest pet specialty distribution center in Canada, exceeded only by Pet Valu’s own 670,000 sq. ft. distribution center in Brampton, Ontario (“GTA DC”) and brings up to 150 skilled jobs to Surrey. Similar to the GTA DC, the Facility utilizes an advanced warehouse management system and modernized machine handling equipment, safety systems and security systems. Additional features include ample wellness space to support the diverse needs of its employees, including a meal room, training space, a driver’s lounge, prayer and ablution rooms and first aid facilities. As part of the Company’s ongoing pursuit to optimize energy and emissions management, the Surrey DC will pilot the use of two electric trucks as part of its delivery fleet. Each electric delivery truck represents an opportunity to avoid consumption of more than 25,000 liters of diesel fuel per year.

Pet Valu expects the Surrey DC to be fully operational by the fourth quarter of 2024, as it scales down use and exits its legacy distribution center and third-party storage space in the Metro Vancouver Region in the coming months. The Facility is currently receiving and shipping all products through advanced manual processes with implementation of automation of its piece-pick operations intended for 2026 or thereafter.

“Pet Valu continues to set a high bar for pet specialty distribution capabilities in Canada,” said Nico Weidel, Chief Supply Chain Officer at Pet Valu. “The advanced, modern processes and systems at each of our new distribution centers provide improved product availability, faster order processing and enhanced customer service levels for stores and eCommerce customers alike in a safe, spacious environment that supports the needs of our modern workforce. As we finalize our transitions in the Greater Toronto and Metro Vancouver regions, we will soon shift our focus to our final distribution hub in Calgary and completion of our supply chain transformation in 2025.”

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