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Goodfood Market Brings 1-Hour Grocery Delivery to Ottawa

Canadian e-grocer leverages and expands its infrastructure
Marian Zboraj, Progressive Grocer
Goodfood Brings 1-Hour Grocery Delivery to Ottawa
Goodfood has launched one-hour grocery delivery in the greater Ottawa region through a new local micro-fulfillment center.

Online grocer Goodfood Market Corp. continues its momentum in its home country of Canada by launching one-hour delivery of fresh meal solutions and grocery items from its new micro-fulfillment center in Ottawa.

Goodfood customers have access to a unique selection of online products, as well as exclusive pricing made possible by its direct-to-consumer infrastructure and technology that eliminate food waste and costly retail overhead. The brand initially introduced its one-hour delivery of meal solutions and essential groceries in November 2021 to key markets.

For customers in Ottawa, the e-grocer has partnered with distinct vendors to provide local grocery favorites, in addition to Goodfood’s private label and national-brand products.

“We continue to invest in technology, people and micro-fulfilment infrastructure to address the rapidly increasing consumer need for faster delivery and convenient grocery options,” said Goodfood CEO Jonathan Ferrari. “Our customers are at the center of everything we do, and our launch in Ottawa enables and empowers Canadians’ food discovery — whether they are brand-new or seasoned home cooks looking for meal and kitchen solutions everyday.”

Goodfood uses Dynamics 365 in partnership with Microsoft to streamline inbound receiving, communication with suppliers and the inventory count process, allowing the brand to operate faster, maintain a customer-centric focus and increase profitability.

“With Dynamics 365, our team is able to focus on value-added tasks like sourcing new farms and artisanal producers that are key to the offering,” said Ferrari. “This partnership and approach is one of the many initiatives driving our constant consumer-focused evolution and innovation in the grocery industry.”

For first quarter of fiscal 2022, which ended Dec. 4, 2021, Goodfood reported net sales of $78 million, stable compared with $79 million in the previous-year quarter.

“Comparing our first-quarter 2022 financial performance to the fourth quarter 2021 in which we saw for the most part COVID-19 restrictions lifted, net sales of $78 million were stable, with close to a million orders delivered in the quarter and positive momentum in order rates and active customers versus the summer lows,” said Ferrari. “The quarter saw the beginning of an expected progressive improvement to our adjusted EBITDA margin compared to fourth quarter of 2021, driven by 110 basis-points gross-margin improvement against the backdrop of inflationary pressures, as well as an SG&A cost-containment effort that led to an 8% reduction in our SG&A spend versus the fourth quarter of 2021. Lastly, we are also pleased with the progress made on our reorganization initiative that once completed, will generate $11million-$13 million of annualized savings compared to the fourth quarter of 2021.”

Goodfood Market's main production facility and administrative offices are based in Montreal, Québec, with additional production facilities in the provinces of Quebec, Ontario, Alberta and British Columbia. The brand will continue to evaluate opportunities for microcenters in new cities over the coming months.

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