Roots to open new integrated distribution centre

By

Jennifer Braun

Published
May 17, 2018

Weeks after announcing plans to expand in the U.S., Canadian retailer Roots announced on Wednesday that they are moving to a new 209,000-square-foot multi-channel distribution centre. 

 
The new facility will be based in the Greater Toronto Area and will allow the company to have a single point of fulfillment for retail stores and e-commerce sales. Currently, Roots is operating its own Distribution Center for its retail store operations and using a third-party for its e-commerce fulfillment. 
 
The merger will further allow the company to drive operating efficiencies and support the company's accelerated long-term growth. 

"Moving from our current 60-year-old DC and bringing our retail and e-commerce fulfillment into a single Roots-operated facility is an important step in driving long-term growth and efficiencies within our business," said Jim Gabel, President and Chief Executive Officer of Roots, in a news statement. 

"We are significantly increasing our capacity to better support our expanding North American retail footprint and growing e-Commerce business. With one DC for our direct-to-consumer channels and a new warehouse management technology platform, we are confident we will lower our cost per unit for shipping and reduce delivery times to our consumers and stores. Further, as a company with a rich Canadian heritage, we are excited to be investing in our local community and creating new job opportunities."
 
The new facility is approximately double the size of Roots existing Distribution Centre, includes more than six times the number of shipping/receiving docks and has double the ceiling height to accommodate more rack space.
 
The company expects the new facility to be fully-operational by mid-2019.
 
In its first full year results announced since completing an initial public offering in October, the 45-year-old apparel brand saw sales reach $326.1 million for the full year ended February 3, 2018.
 
By the end of fiscal 2019, the Canadian retailer expects sales of $410 million to $450 million, adjusted EBITDA of $61 million to $68 million and adjusted Net Income of $35 million to $40 million.