Canadian Retailer - Summer 2014 - 13

LM: Our objective is to bring healthy food to the
marketplace at the lowest cost possible. We also audit
all of our suppliers in terms of working conditions,
employee safety, ﬁre safety, process, just so we know from
a corporate responsibility point of view that everything
is good. We also make all of our sustainability initiatives
visible to anybody who wants to know. In terms of
supply chain, we're open to share everything we do with
customers and competitors to show them how we're able
to move product through the supply chain.
MF: We're in close contact with all of our growers and
shippers, some we`ve worked with for more than ﬁfty
years, and we continue to build new relationships as well.
More than anything, though, it's the education piece
that`s important. One of our berry grower/shippers,
growing out of California and Florida, provides a QR code
on their packaging. When scanned, the consumer can see
the name of the person-ﬁrst and last-who picked your
product, which ﬁeld it was grown in, which row in that
ﬁeld, and which day it was picked on. It brings it to a very
personal level. This kind of education and information
engenders the customer's trust in you.
KL: As grocers face ever-increasing margin compression
and innovate in the face of intense competition, how do
you operate to meet the demands of bottom line budgets
while continuing to add value for the customer?
JC: The products that we carry are not the standard
products. They're all organic. We don't carry the
mainstream product line. So, with respect to value, for
us it's around the service and education of the customer.
It's all about educating them and helping them make
educated choices for themselves. We are not committed to
being the cheapest. We want to provide a good shopping
experience and to help consumers.
GF: Consumers get very excited about the value we offer
through our President's Choice and No Name brands.
Value is a big one. Our President's Choice and No Name
brands have offered to our consumer for a long time
now. And, in terms of formats, we're really proud of the
results we're seeing from our different formats, from
our "Inspire" fomat, which offers a higher-end specialty
experience, to our discount category which includes
our nofrills business. And, Shoppers Drug Mart is, by
deﬁnition, our newest format. It gives us incredible access
to a network of more than 1,000 small-format stores,
each operated by an independent Associate Owner, and
conveniently located, also allowing us to address the
trend of urbanization in the country.

MF: It's a tightrope act, trying to balance
value and service while trying to be priced
right as well. We have a program called
LPA (Low Price Alert) where we lock down
pricing for a period of time. Quarterly we
lock down ten items that penetrate high in
our customers' baskets. On the product side,
we make sure we're always buying the best
product because we aren't always going to
be the cheapest. Our service commitment to
our customers is also excellent. We're fully
staffed on the ﬂoor, we bag your groceries
and we bring your groceries to your car. We
try to hit value on all levels.
LM: Our business mission is to save
Canadians money so they can live better.
Everything is centred on getting healthy
product to the customer at the lowest
cost possible so you give that savings
to the customer. Price drives our value
proposition. We understand what our
customers want-great value at unbeatable
prices.
KL: Online grocery retailing is gaining
momentum in the U.S. and seems to also
be piquing some interest among Canadian
consumers who seek the convenience of
delivery. Where do you see online grocery
retailing going in the next 2-3 years? What
are some of the challenges?
LM: E-commerce is continuing to grow
and it will continue to grow at a much
faster pace than bricks and mortar. We
currently have a Click and Collect model
in the US and at ASDA, Walmart's banner in the UK that's working very well for
us. To grow this side of the business and
to ensure that more and more customers are taking advantage of this alternate
method of shopping, you have to do it right
for them with a level of care that they'll
trust and appreciate. This trend will only
continue to gain in momentum.

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Canadian Retailer - Summer 2014

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