Empire Provides E-Commerce Update

Executive Summary

• Empire Company announced a strategic e‑commerce rationalization that will generate approximately $95 million of annualized operating income in fiscal 2027.
• The company will record a non‑cash impairment and related cash charges of about $750 million in Q3 FY 2026 due to underperforming Alberta e‑commerce assets.
• Empire is expanding third‑party delivery through a new partnership with DoorDash, while continuing growth in Ontario and Quebec via its Voilà banner and existing Ocado collaboration.

Key Details

• Alberta Facility Wind‑down: Immediate closure of the Calgary Customer Fulfillment Centre (CFC) and a smaller Edmonton support site; pause on Vancouver CFC development continues. No material impact expected on same‑store sales growth.
• Ontario & Quebec Focus: Ongoing operations at Voilà CFCs in Greater Toronto and Montreal remain “steady” and are identified as core to the e‑commerce strategy, supported by high‑growth potential and Ocado partnership.
• DoorDash Collaboration: New third‑party delivery partnership slated to roll out in the coming months, expanding home‑delivery options nationwide.
• Financial Impact:
• Expected $95 M boost to annualized operating income for FY 2027.
• Anticipated $750 M non‑cash impairment (including right‑of‑use asset write‑down) and related cash charges in Q3 FY 2026.
• Management Commentary: CEO Pierre St‑Laurent emphasized commitment to grocery e‑commerce, the necessity of the Western Canada facility closures, and confidence that the revised strategy will “ensure long‑term growth and profitability.”

Notable Quotes

“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,” – Pierre St‑Laurent, President & CEO.

Materiality Assessment: Material – Neutral (significant positive operating income benefit offset by a large impairment charge).