SCC sets super hub opening, expands warehousing 65%
TORONTO – Sleep Country Canada Holdings (SCC), parent to this country’s largest retail mattress specialists, has expanded its fulfillment capacity with the addition of two new storage hubs, one in Calgary and the other in the eastern Ontario city of Belleville. This strategic infrastructure investment is designed to increase operational efficiencies and support future years of planned aggressive growth.
In a statement, the publicly held retailer said the new storage hubs add 278,000 square feet – or 12 million cubic feet – to its existing network of 17 fulfillment centres located across the country. In all, they will increase its overall warehouse capacity by 65%.
The company also said the hubs will feature advanced technology to provide it with efficiencies in fulfillment and distribution to support its growing direct import program for accessories and its bed-in-a-box assortment. They will also ensure flexibility in receiving, picking and packing inventory to service its expanding online business and establish the infrastructure required to fuel SCC’s future growth plans. The new storage hubs will reduce the need to expand its existing fulfillment centre square footage in premium priced markets, clearly distinguishing and focusing on its competitive advantage to enhance its last mile just-in-time fulfillment centres from its storage facilities for inventory.
Canadian customers shopping online and in-store will benefit from these new storage hubs through improved stock availability, expanded assortment and faster fulfillment options. Both storage hubs are planned to be fully operational this summer with the Calgary hub opening in July, followed by Belleville in August.
“Today’s announcement will further advance the exceptional value that Sleep Country’s overall supply chain logistics brings to our business and our customers. Not only have we built a coast-to-coast network of 287 conveniently located stores and become one of the fastest growing online bedding retailers to further enhance our customer experience, but over the years we have also constructed an unmatched network of delivery and distribution to service our customers for that increasingly important last mile delivery with speed, flexibility and efficiency. These new storage hubs further support our promise to deliver world-class customer experiences at each and every touchpoint,” said Stewart Schaefer, president of Sleep Country and Dormez-vous – SCC’s two brick-and-mortar banners.
“Last year, we took advantage of market opportunities to secure competitive pricing for these facilities that will support our aggressive growth plans for years to come. Our record-breaking results and the overwhelmingly positive response from Canadians over the past year made this the perfect time to take the next step in our strategic growth roadmap,” continued Schaefer.
“After 27 years in business, we know that investing in a powerful physical infrastructure is an important strategic element of our competitive advantage and an essential catalyst to support our growth. With these new storage hubs, we are well-positioned to execute growth opportunities including establishing new vendor partnerships, category and product innovation, improving our direct overseas sourcing capabilities and online marketplace expansion,” he added.
Schaefer also noted SCC has improved product gross margins and profitability over the last several years because of its strategic shift from a solely just-in-time local fulfillment model to a combination of local partners and direct import fulfillment model. This approach was purposefully implemented to support growth in e-commerce, sleep accessories and the Bloom bed-in-a-box business.
“These storage hubs, strategically located in proximity to the country’s largest ports on the east and west coasts, will further enhance our direct import capability by receiving and housing a growing number of imported containers and serving as a more efficient breakpoint to deliver product quickly and effectively to the company’s fulfillment centre network,” SCC’s statement read.
“This new strategy will further advance the efficiencies and the delivery capacity of our 17 existing fulfillment centres, which will continue to be the sole provider of the company’s leading white glove last mile delivery service that Canadians have grown accustomed to coast-to-coast – an important commitment and service differentiator for Sleep Country,” it added.
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