E-comm, stores and more

At the Retail CEO Panel at Canadian Grocer’s GroceryConnex conference in November, we asked three of the industry’s leaders for their take on some of the big things shaping grocery. From e-comm to in-store tech and talent, here’s some of what Michael Medline, president & CEO of Empire Company; Anthony Longo, president & CEO of Longo’s; and Ken Keelor, CEO of Calgary Co-op had to say:

E-COMM – GREAT EXPECTATIONS

E-comm continues to be a hot topic in the industry so we asked the three leaders how they see it evolving from where it is today and how consumer expectations are changing in this space? “Where it’s going is really to a more interactive experience online,” said Calgary Co-op’s Keelor. Having the basics in terms of assortment and functionality of e-comm, is one thing, he said, but consumers will want more, so bringing the great things you do in-store to life as much as is possible will be important. Empire’s Medline added that few customers are strictly online shoppers, many do both. “When they think of our banners and our brands they think of just shopping—they don’t differentiate like we think sometimes they do,” he said. The panel all agreed that with so many options available, today’s customers have greater expectations around e-comm. “That sort of base crummy e-commerce shop that some were offering during COVID and continue to offer is not going to make it,” said Medline. “Customers are going to get pickier and pickier and expect more and more frills like they have in the store, [when they shop] online.” And with consumers wanting what they want when they want it—be it click-and-collect or delivery to home—Longo added that the challenge to retailers

is to figure out how to provide these services in a way that’s profitable. “There’s still a cost to serve and we need to figure out how to make sure it pays for itself in some way,” said Longo. E-COMM,

STORES AND BUT DON’T FORGET THE STORES! While the acceleration of e-commerce has been the big news story in retail over the course of the panMORE! demic, Medline said grocers must remain focused on the stores. While e-comm’s share of sales has climbed steadily, the bulk of groceries continue to be (and will continue to be for some time) purchased in store. “We

Three of Canada’s grocery leaders can’t lose sight of that,” he said. “I believe that a lot of companies around the world in retail and especially give their perpsectives on navigating in grocery are putting all their money into e-commerce and into technology, but the stores have to be an ever-changing industry kept up. We have to keep investing in them for our customers … Customers expect great shopping conditions and great service when they return to the store; not less but more. I think people are losing that.” And while retailers are investing heavily in technology to enhance the store experience, innovation for innovation’s sake is useless, said Medline. True, you have to make in-store shopping exciting, but before adding all the bells and whistles, you first need to get the basics correct. Medline said this means having things like great teammates in-store, a friendly checkout experience and fully stocked shelves. “If you don’t have the basics right … you’re building an infrastructure on a house of sand, it’s a disaster. So that’s what I’m trying to balance all the time—you’ve got to get the fundamentals right and Michael Medline you have to have amazing teammates in the store, as we do. Then you can add to that. But sometimes I’m seeing a lot of innovation that’s just not adding a lot to the customer.”

THE TALENT QUESTION

With Canada in the grips of a labour shortage and persistent headlines warning of “the great resignation” the panel was asked what retailers need to be doing to attract and retain talent today. “I think

Anthony Longo you need to do what you always have to do as a great employer and that’s to provide meaningful work, work with a purpose,” said Longo. He added that employers have a responsibility to provide opportunities for their employees to learn new skills, in IT, for example. “We’ve got to be investing in their education, investing in how they learn and give them the opportunity to grow and do cool things … not just keep the lights on kind of work.” And then there’s mentorship. Longo says it’s important that your best employees have mentors within the business to help

Ken Keelor them navigate whatever challenges or opportunities they encounter in their roles. “Really, it comes down to investing in your team and investing in your people. When you do that, people know you care … and you want them to succeed.”