Target inks supplier deal for Canadian stores

STELLARTON, NS and MINNEAPOLIS — Details for Target's entry into Canada continue to fall into place as the retailer announced last week a long-term wholesale distribution agreement with Sobeys Inc.

Beginning in early 2013, Sobeys will supply Target’s food and grocery requirements for frozen, dairy, and dry grocery products, inclusive of both national brand and Target’s private label brands.

“Target is excited to be working with a partner like Sobeys. We look forward to building a strong relationship that creates value across both companies for a long time to come,” said Tony Fisher, president Target Canada.

Through its coast-to-coast network of 23 food distribution centers, Sobeys will be able to provide the same high level of service to Target’s store network as it does to its own network of 1,300 stores across the country. The two companies have also agreed to leverage each other’s distribution networks to mutually reduce transportation expenses.

In addition to the wholesale distribution arrangement, both companies will also explore additional supply chain opportunities.