IRW-PRESS: Organic Garage Ltd .: “Organic Garage” completes the shift to a decentralized sales model; Expect to save $ 1 million annually
Toronto, Canada, April 27, 2021: Organic Garage Ltd. (Organic Garage or Company) (TSXV: OG; FRA: 9CW1; OTCQX: OGGFF), Canada’s leading independent organic grocery, today announced that it has completed closing its distribution and storage facilities and is now fully decentralized.The sales model has been switched. It is expected that the cost savings resulting from the relocation process will be more than $ 1 million per year.
Organic Garage initially chose the hub-and-spoke model, with a central distribution facility serving stores to exert greater control over the supply chain, albeit at a substantial cost. After analyzing the costs of continuing to run the central sales model, it was determined that the savings were large enough to justify a move to a decentralized model. At the same time, the company has managed to negotiate preferential pricing and discount programs with its sales network, as it will now have a much larger volume, especially for brands previously purchased by Organic Garage directly from the manufacturers. In addition to the operational savings resulting from shifting the sales model, the company expects additional benefits in terms of gross margins, as it can use the logistics of its distributors at their own expense.
Simplicity and flexibility are factors that the company took into consideration before deciding to immigrate. The company has removed additional layers of complexity in its operations and now has the ability to explore expansion opportunities outside of the city center or the greater Toronto area, regardless of the logistical considerations associated with the central sales model.
Matt Lowry, CEO of Organic Garage, explained the reasons for the shift to a decentralized sales model in an interview with Proactive Investors.
Matt Lowry, CEO of Organic Garage, said the big savings, and ultimately profits, of our business as a result of change are too big to ignore. It talks about the strength of our team at Organic Garage and the nature of the relationships we have with our distributors and suppliers that enable us to fully operate the sales and supply chain model amid major sales increases and the ongoing pandemic with minimal disruption to our operations to move.
To view the interview with proactive investors, please click on the link below:
About Organic Garage Ltd.
Organic Garage (TSXV: OG) (FWB: 9CW1) (OTCQXL OGGFF) is one of Canada’s leading independent organic grocery vendors, providing customers with a wide range of healthy and natural products at affordable prices. The company’s stores are conveniently located and give customers a unique and value-oriented shopping experience when grocery shopping. Organic Garage was founded in 2005 by a fourth-generation grocery store and is headquartered in Toronto. The company’s goal is to expand its retail presence in the Greater Toronto Area. For more information, please visit Organic Garage at www.organicgarage.com.
For more information, please contact:
Tel: (416) 479-9547
Email: [email protected]
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Notes regarding forward-looking statements
This press release contains certain forward-looking statements and forward-looking information (collectively referred to in this statement as forward-looking statements) within the meaning of applicable Canadian securities laws. All statements that are not current or historical facts should be viewed as forward-looking statements. Forward-looking statements are often, if not always, accompanied by the use of terms such as prediction, fulfillment, can, belief, planning, intention, goal, continuous, continuous, discretion, expectation, expectation, can, will, project, should, or similar expressions. Or negate it, from which it is possible to draw conclusions about future results.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors, many of which are outside of Organic Garage’s control. This may cause actual results, level of activity or achievements of Organic Garage to differ materially from those expressed or implied in such forward-looking statements. Organic Garage has made efforts to identify significant factors that could cause actual results to differ materially from those stated in the forward-looking statements. However, other factors may also mean that the results are not as expected, estimated or intended.
Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, some of which are described here. These forward-looking statements are necessarily subject to known and unknown risks and uncertainties that may cause actual performance and “organic compound” results to differ materially from the expected future performance or results stated directly or indirectly in such forward-looking statements. Forward-looking statements are made on the basis of the current date and “Organic Garage” is not obligated, outside of statutory provisions, to publicly update or correct these statements to conform with new information – subsequent or otherwise -.
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