Canadian grocery retailer Sobeys is to supply Target Corp. with food products to sell in the US discounter’s stores north of the border.
The deal announced on Friday (23 September) will see Sobeys supply Target with own-label and branded frozen, dairy, and dry grocery products from 2013.
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“We are pleased to welcome Target as a valued wholesale customer. The associated increased revenue, and the supply chain efficiencies which will lower our costs, will continue to strengthen our competitive position,” Sobeys president and CEO Bill McEwan said.
The two companies have also agreed to “leverage” each other’s distribution networks to cut transport costs.
“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 Target Canada president Tony Fisher.
Both retailers also plan to “explore additional supply chain opportunities”.
