Sleep Country Canada Holdings Inc. is adding distribution centres in Calgary, Alberta, and Belleville, Ontario.
Both are planned to be fully operational this summer with the Calgary hub opening in July, followed by Belleville in August.
The two newly designed storage hubs add 278,000 square feet (12 million cubic feet) to the company’s existing network of 17 fulfillment centres and increase overall warehouse capacity by 65%.
The hubs, located in proximity to the country’s largest ports on the east and west coasts, will boost the company’s import capability by receiving and housing a growing number of imported containers and serving as a more efficient transshipment point to deliver product to the fulfillment centre network.
The company says the new facilities will reduce the need to expand its existing fulfillment centre square footage in premium priced markets.
It also said the DCs will use “advanced technology” and provide efficiencies in fulfillment and distribution to support its growing direct import program for accessories and bed in a box products. They will also ensure flexibility in receiving, picking and packing inventory for its expanding online business and establish the infrastructure for future growth.
“Canadian customers shopping online and in-store will benefit from these new storage hubs through improved stock availability, expanded assortment and faster fulfillment options,” the company said in a release.
“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,” said Stewart Schaefer, president, Sleep Country and Dormez-vous.
“After 27 years in business, we know that investing in a powerful physical infrastructure is an important strategic element … 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.”
Sleep Country has improved profitability over the last several years thanks to 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 implemented to support growth in the company’s e-commerce, sleep accessories and Bloom bed-in-a-box businesses.