Simons announces major investment in a new, state-of-the-art, multi-service fulfillment centre

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With Ms. Dominique Anglade, Deputy Premier, Minister of Economy, Science and Innovation and Minister responsible for the Digital Strategy, Mr. Sébastien Proulx, Minister of Education, Recreation and Sport, Minister responsible for the Capitale-Nationale region and Mr. Régis Labeaume, Mayor of Québec City in attendance, Mr. Peter Simons, President of La Maison Simons, presented today the details of a cutting-edge, multi-service fulfillment centre to open in 2020, which will enable Simons to pursue its growth strategy, respond to consumer demand and ensure its sustainability. The new fulfillment centre will leverage unique, state-of-the-art automated equipment and technologies that will allow Simons to increase its productivity and order fulfillment capacity, both in store and online, thereby remaining competitive in a constantly evolving retail market. false false false MAJOR PARTNERS FOR A MAJOR INVESTMENT Simons’ growth over the years is not a coincidence, but rather the result of shrewd and sometimes risky decisions from five generations of entrepreneurs. It is with that same entrepreneurial spirit that Simons has chosen to work with several partners to finance this significant investment of $215 million to maintain its leadership position among major players in the e-commerce and digital economies. As part of the ESSOR program, the gouvernement du Québec will provide an $81 million term loan, $51 million of which will be used to purchase automated equipment. This involvement in the financial arrangement, which is not a subsidy, will enable Simons to acquire efficient and innovative order preparation, processing and delivery solutions. false false false For Simons, this marks a new and important phase, as for the first time in its history, it is opening its share capital to external partners. Specifically, the contributions of the Caisse and Investissement Québec will complete a robust and agile financial structure. The investments totalling $44 million, $27 million of which came from the Caisse and $17 million from Investissement Québec, using its own funds, will enable Simons to begin a new phase of sustained growth. For these two investors, this long-term participation in a top-tier Québec-based player in e-commerce reflects the importance they give to digital transformation within Québec’s corporate world, which is an essential means to move toward a digital economy, as well the role they wish to play in this process. false false false Simons continues to be supported by its banking partners, which include Bank of Montreal (BMO), National Bank and, more recently, Desjardins, for its building financing and working capital. A MULTI-SERVICE FULFILLMENT CENTRE NEAR SIMONS’ ROOTS The City of Québec’s support was indispensable in selecting a sufficiently large and accessible site for the new facility. By backing such a major, forward-thinking project to support online commerce, the City shows vision and actively participates in the shift toward a digital economy. false false false The multi-service fulfillment centre’s construction will begin over the next few weeks. Property financing (building and land) required the implementation of a real estate partnership that will involve Simons’ owners and the Fonds immobilier de solidarité FTQ. This represents a direct contribution of $20 million by the Fonds immobilier for purchasing the land and building the new centre, which will be worth approximately $100 million. Based on the agreement, Simons will be the long-term tenant of the facility. false false false REPURPOSING THE EXISTING DISTRIBUTION CENTRE In addition to its new fulfillment centre, Simons will leverage its online marketing expertise in collaboration with the Ministry of Economy, Science and Innovation to implement a multi-client e-commerce center in the existing distribution centre. Of the $81 million term loan granted to Simons by the gouvernement du Québec, a sum of $30 million will be used to maintain the existing facility that will house this "e-commerce accelerator". Upon its launch, this innovative virtual marketplace will enable artisans and small businesses, among others, to benefit from a set of skills and services Simons honed over time. By having access to this e-commerce knowledge ecosystem, businesses will be able to take advantage of the power of the web to market their products and services. false false false About Simons Simons was founded in 1840 by John Simons as a dry goods store in Québec City and has since built its reputation on being an accessible and inspired fashion brand. Simons is led by brothers Peter and Richard Simons who carry on the family legacy and the brand’s commitment to cultivating creativity, building meaningful relationships with staff, partners and customers, and being mindful of the environment and the communities where they do business. Simons offers an extensive and fashion-forward collection of its own exclusive and innovative private label brands for men and women, complemented by today’s leading labels, discovery brands from around the world and an edited collection of Canadian and international designers, making it well-known for its exceptional selection of merchandise for everyone. Simons also carries home fashions for the bedroom, bathroom and kitchen. All 15 Simons stores are compelling, original environments that inspire customers through fashion, art and architecture. Locations: nine in Québec (three in Québec City, including its headquarters in Old Québec, plus Montréal, Anjou, Laval, Saint-Bruno-de-Montarville, Sherbrooke, Gatineau); two in Edmonton (West Edmonton Mall and Londonderry); West Vancouver, British Columbia; Calgary, Alberta; and Mississauga and Ottawa in Ontario. Visit www.simons.ca or follow on Instagram: @maisonsimons, Facebook: facebook.com/simons.ca, Twitter: @SIMONS_eng (EN) or @Simons (French). ABOUT CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at December 31, 2017, it held $298.5 billion in net assets. As one of Canada's leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt. For more information, visit cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages. About Investissement Québec Investissement Québec's mission is to foster the growth of investment in Québec, thereby contributing to economic development and job creation in every region. The Corporation offers businesses a full range of financial solutions, including loans, loan guarantees and equity investments, to support them at all stages of their development. It is also responsible for administering tax measures and prospecting for foreign Investment. About the Fonds immobilier de solidarité FTQ The Fonds immobilier de solidarité FTQ promotes economic growth and employment in Québec by strategically investing in profitable and socially responsible real estate projects in partnership with other industry leaders. The Fonds immobilier backs residential, office, commercial, institutional and industrial projects of all sizes across Québec. As at December 31, 2017, the Fonds immobilier had 47 projects in development, 53 properties under management, 14 million square feet of land and $71 million invested in social, community and affordable housing. The Fonds immobilier is a member of the Canada Green Building Council.