1. News
June 1, 2018

Simons to open fulfillment centre in Québec with $215m investment

Canada-based fashion retailer La Maison Simons has announced its plans to invest $215m to establish a multi-service fulfilment centre and expand its presence in the e-commerce and digital sphere to cater to consumer demand.

Canada-based fashion retailer La Maison Simons has announced its plans to invest $215m to establish a multi-service fulfilment centre and expand its presence in the e-commerce and digital sphere to cater to consumer demand.

Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

The company has worked with several partners to secure financing for the project, including the Québec Government, Caisse de dépôt et placement du Québec (the Caisse), and Investissement Québec.

Simons and the Fonds immobilier de solidarité FTQ have partnered with regards to property financing, which represents a $20m contribution for buying the land and building for the $100m fulfilment centre. As per the agreement, Simons will serve as the long-term tenant of this facility.

Construction will commence over the next few weeks and is scheduled to be complete by 2020.

La Maison Simons president Peter Simons said: “Our clientele is increasingly choosing to complement their in-store shopping experience with online purchases, which is why we invested in our e-commerce infrastructure over the past few years.

“A new fulfilment centre will allow a company such as ours to respond to our rapidly growing online business while supporting our continued store expansion.

“It also allows us to rethink our order fulfilment processes to better support our distribution centre teams.

“The new fulfilment centre will enable the retailer to increase its productivity and order fulfilment capacity.”

“By providing our employees with the latest technology to be more efficient and productive, we will become more competitive and be able to create more high-quality jobs.”

Québec government will award a $81m term loan to Simons under its ESSOR programme.

The company will use $51m to purchase automated equipment for the fulfilment centre and the remaining amount to buy order preparation, processing and delivery solutions.

The new fulfilment centre will enable the retailer to increase its productivity and order fulfilment capacity, both in-store and online by utilising automated equipment and technologies.

Caisse will invest $27m, while Investissement Québec will fund $17m into the centre.

According to Simons, this marks an important phase, as it opens its “share capital to external partners”.

Simons is drawing its building financing and working capital through its banking partners, which include Bank of Montreal (BMO), National Bank, and Desjardins.

The retailer’s banking partners, including Bank of Montreal (BMO), National Bank, and Desjardins, will provide support for its building financing and working capital.

Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.