Automating Grocery Distribution
Pattison Food Group Modernizes Western Canada Grocery Fulfillment with Dematic Automation Investment
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Pattison Food Group has automated its massive Langley, British Columbia distribution center, partnering with supply chain giant Dematic to overhaul grocery fulfillment across Western Canada. The 485,000-square-foot facility now uses a nine-aisle Dematic Multishuttle system with nearly 62,000 automated storage locations and 16 goods-to-person workstations, according to Montreal Gazette.
The system handles roughly 11,000 grocery SKUs and serves nine retail banners, including Save-On-Foods and PriceSmart Foods. Mike Olson, PFG's Senior Vice President of Supply Chain, said Dematic helped the company "build a scalable, intelligent operation" — not just install machines, according to Shoreline Beacon.
How the New Automation System Actually Works
At the heart of the Langley facility is a Dematic RapidPick® system paired with the nine-aisle Multishuttle. The Multishuttle stores and retrieves individual cases at high speed. Workers no longer walk aisles picking items by hand. Instead, goods travel automatically to 16 stationary workstations, a model called "goods-to-person" fulfillment. This cuts physical strain and speeds up order processing, Calgary Herald reported.
The shift matters because split-case fulfillment — filling orders with partial cases rather than full boxes — is slow and error-prone when done manually. Companies adopting these specific Dematic systems typically see a 25–30% reduction in labor costs and a 300% increase in fulfillment speed, according to industry analysts.
Walmart's Surrey Warehouse Forced PFG's Hand
This investment did not happen in a vacuum. Walmart recently opened a $175 million automated distribution center in nearby Surrey, B.C. Amazon has made similar moves across Canada. Western Canadian grocers that rely on manual warehouses are falling behind on speed and cost, according to industry experts.
Canada's warehousing sector also faces a serious labor shortage. Annual worker turnover runs between 40% and 60%, and the workforce is aging fast. Danielle Dakin, Dematic's Global Market Development Director, put it simply: "efficient fulfillment is non-negotiable" in today's omnichannel grocery market, Pembroke Observer reported.
Unions Warn Automation Comes at Workers' Cost
Not everyone sees this as good news. UFCW 1518, which represents about 28,000 workers across B.C. warehouses and stores, has raised concerns about job stability. The union's president, Patrick Johnson, has been publicly critical of PFG's corporate priorities. In January 2026, the union also raised ethics concerns after the Pattison Group sold a Virginia warehouse property that was later connected to ICE operations, according to Cold Lake Sun.
PFG frames the automation as a health and safety win — fewer back injuries, less heavy lifting. But critics note the company cut hazard pay for frontline workers while investing heavily in robotics. The tension reflects a broader national debate: automation may be essential for competitiveness, but the benefits and burdens are not shared equally.
A $30 Billion Industry Betting on Faster Groceries
The Langley project fits into a massive global trend. The warehouse automation market is worth $29.98 billion in 2026 and is projected to nearly double to $59.5 billion by 2030. For PFG, part of Jim Pattison's $14 billion empire, the Langley facility is meant to absorb supply chain shocks and support competitive pricing across Western Canada, Calgary Herald noted.
Industry experts also point to a sustainability upside. Modernizing an existing building — rather than building a new one — increases storage density without the carbon footprint of new construction. PFG's Langley upgrade stores more product in the same footprint, squeezing more efficiency out of existing infrastructure as grocery competition in Canada intensifies.
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