Winnipeg-based Skip the Dishes is closing its grocery and retail distribution centres across Canada and laying off the workers who staffed them.

A Skip Express Lane employee said he felt betrayed during a conference call Wednesday, when he and others were let go en masse, after three years working part-time in one of the “fulfilment centre” warehouses as his second job.

He estimated there were about 100 other people on the call Wednesday.

“As much as it’s a shocker … it’s an [online] convenience grocery store where you have to pay a premium,” the man said.

“Canadians have been losing their purchasing power and therefore companies like this have been exiting, and Canadians have been losing jobs left, right and centre.”

He spoke with CBC News on condition of anonymity over concerns his criticism could impact his severance package from Skip.

The news comes one week after Skip announced it’s expanding its household and grocery delivery offerings with 13 Loblaw-owned grocers, including Real Canadian Superstore and NoFrills, in a “key milestone.”

In 2021, Skip announced it would open 38 fulfilment centres across the country as part of its Express Lane service, which grew amid a rise in demand for grocery delivery during the pandemic. Some of the first were in London, Ont., and Winnipeg, which is where Skip is headquartered.

The “ghost” distribution centres were not open to walk-in customers; instead, you ordered through the Skip app and drivers picked up and delivered your order like takeout.

The Express Lane model was in competition with DoorDash’s DashMart, InstaCart and others.

A Skip spokesperson declined twice to tell CBC News how many staff were laid off at the fulfilment centres, but did confirm Skip Express Lane operations are shutting down and store staff are being laid off.

Paul Sudarsan, senior vice-president of partnerships with Skip, said Skip Express Lane was a bold step toward filling a gap in the grocery and retail markets.

“Skip Express Lane will always be an important chapter in our story, and we’re incredibly proud of what our teams were able to build right here in Canada,” Sudarsan said in a statement.

“While business decisions that impact people’s jobs are never simple or easy, we are committed to helping these impacted individuals in any way we can, and are incredibly grateful for the contributions they have made to the business.”

Prof. Sylvain Charlebois, director of the Agri-Food Analytics Lab at Dalhousie University, said he isn’t surprised by the closure of Skip Express Lane, as there’s been some “right-sizing” in the home food delivery sector after a boom during the pandemic.

The peak was in 2021-22, but the market has softened, he said.

“We’ve seen many categories drop in terms of popularity: meal kits, ready to eat meals as well.… Even for grocers, it’s been incredibly difficult to make money,” Charlebois said.

Online purchases make up only a small percentage of retail food sales in Canada, he said.

“That pie hasn’t really grown all that much in recent years.”

Canadian consumers do not readily associate online grocery shopping with deals and are more inclined to look in brick-and-mortar stores for savings, Charlebois said.

“It’s hard to argue that Skip would have been seen by many as a go-to place for bargains — that’s the thing, in light of what’s been happening with inflation, in light of what’s been happening with energy costs,” he said.

“Whereas Loblaw, they have the infrastructure and again, you got the click and collect. So you still have access to good deals even though you have to drive up to the store yourself.”

Skip did not comment on whether the layoffs and closures announced on Wednesday are connected to its partnership with Loblaw.

Many Loblaw grocery stores already offer “click and collect” online sales with curbside pickup.

CBC News also asked Loblaw whether, as part of its partnership with Skip, grocery workers already tasked with filling click and collect orders at its stores will now also do so for orders made through Skip the Dishes.

A Loblaw spokesperson said only that Skip’s decision to shutter its Express Lane venture “is a business decision made independently by them and does not impact Loblaw’s business or our partnership.”

The former Skip Express Lane employee who spoke with CBC News said times are tough and losing his part-time job at the fulfilment centre is a big blow.

“For those who were full-time with Skip Express Lane, I could not imagine the financial pressure that they’ll have,” he said.

“I fear for them and I fear for myself.”