Cathi Scarce on liquor retail

CATHI SCARCE

HEAD OF LIQUOR, COLES PTY LTD.

Cathi Scarce can confidently say she knows the business of liquor retail from the ground up. Starting on the retail floor with the customers to rising through the ranks to head of liquor at Coles, Cathi has learned a thing or two. Here she lends her hard-earned wisdom and insights on an ever-changing liquor retail landscape.

Drinks Trade: You have been with Coles for 25 years. In your experience can you describe how has the business and the retail landscape has changed in that time?

Cathi Scarce: The biggest change we’re seeing is the way our customers shop, with many seeking a more personalised experience. Our bricks and mortar store offering now has to be complemented by how we talk to our customers online, so we’re not only investing in our stores but in our digital channels.

We also know that for customers, value is about more than just price. It means the quality they enjoy and the convenience of having a shop near them with the products they want to buy available on the shelf. CS:It’s business as usual for us as the Coles Liquor team continues to offer great value and service at our 908 stores. Our job remains to make life easier for our customers and that’s what we’re going to keep doing.

The biggest change on the horizon for us from an operational point of view will be the Joint Venture with Australian Venue Co that we announced in March. Under the Joint Venture, AVC will manage the day-to-day operations of Spirit Hotels, while Coles will continue to manage the 253 attached liquor stores. AVC has plans to grow the hotel portfolio in Queensland, which will in turn provide Coles with the opportunity to further grow its retail liquor business in that state.

DT:You have a 30-year track record in retail management. In your opinion how do you see liquor retail evolving in the future. What will it look like?

CS: We know that Australians are drinking less and when they do drink it tends to be more occasion-based. People are looking for something special and seeking out premium products. We’re also seeing customers focus more on health and wellness so the boom in low alcohol and non-alcoholic products is only going to grow.

People are also eager to understand where their beverages come from and the story behind them. There’s a movement towards supporting smaller, bespoke wineries, distilleries and craft brewers and the notion that customers are supporting local and they want to see those products represented in their local store. We work hard to ensure we stock a selection of wellknown and loved drinks, as well as supporting emerging boutique products.

There is definitely an evolution in how these brands talk to customers and the impact of social media. These days a brand can launch and sell their product entirely through Instagram.

DT: You have worked from the floor up. How does your previous experience at the coalface assist you in your current role?

CS:When you’ve been directly customer-facing as I was for a large part of my career with Coles, you have a very clear picture about what it is that customers want.

You also understand the nuances of everything you ask your team to do and you never forget what it feels like to be in-store trying to land everything that comes down from the top – and how important it is that it all translates into the best customer experience in the simplest possible way.

Now in my current role I’m looking for ways to make life easier for our team members so they can have more time for our customers. That includes everything from our technology, process simplification, better trading tools and being prepared to listen when they have ideas for making life easier.

DT:Coles has been through some changes recently with the demerger from Wesfarmers. Can you explain how that has impacted the liquor channel?

This changes the way customers interact more directly with suppliers, artisans and brewers so we are looking at ways to take our customers on a similar journey.

There’s also growing appetite for liquor delivery and we are proud that Liquorland boasts the fastest Liquor Click & Collect service in Australian retail, with market-leading speed of service offered at almost 700 Liquorland stores nationally. Customers can see stock availability in real-time, by store, and place an order that will be ready to collect in under 30 minutes.

DT: What is your view on the onslaught of foreign chains such as the latest German supermarket chain, Kaufland, entering the market. Is Coles Liquor strategically prepared for the increase in competition?

CS: Liquor is a very competitive industry and there are lots of independents and small retailers as well as the bigger players.

What’s important to us is that we continue to provide amazing quality, great prices and knowledgeable team members who are passionate about the products that we sell.

There’s always room for competition in the market so we will continue to focus on how we deliver an interesting range and great service in our many convenient locations around Australia.

Customer demand for our exclusive brand products continues to grow, particularly in the wine category, and in the first half of the financial year these products accounted for almost 20 per cent of liquor sales.

In the same period we launched more than 50 new exclusive products and they are fast gaining praise within the industry, with dozens recognised with medals and awards, showcasing our commitment to working with our suppliers to deliver really great products to our customers.

In 2018, 27 wines sold exclusively at Vintage Cellars, First Choice Liquor and Liquorland were acknowledged at the Winestate Best Wines of 2018 Awards, including the Story Bay Semillion Sauvignon Blanc, which was named best wine under $20.

DT: You have held the top job at Coles Liquor now for almost twelve months. What is your key focus for the next twelve months?

CS: One of my key focuses is to continue working with the team to deliver a seamless customer experience and keep growing and improving our digital channels.

We will continue to source top quality products from award winning suppliers for our exclusive range and look to innovate and work with suppliers who are developing new products to meet our customers’ evolving needs.

I will also be overseeing the continued roll out of our renewed First Choice Liquor Market proposition and managing the transition through the Joint Venture with Australian Venue Co.

DT: Tell us about your role promoting diversity and inclusion in the business.

CS: As someone who has grown up in the business it’s been a personal passion for a very long time.

It’s very important to me that we are representative of the communities we serve and that we bring diversity of thought into any decisions the business makes for the benefit of all of our customers.

It’s also important to ensure that you lead by example. In Coles Liquor, 50 per cent of our senior leadership team and 50 per cent of our liquor state managers are women as an example. I’m also working with industry bodies to help promote diversity and inclusion more broadly, as a member of the Diversity and Inclusion Council for the Drinks Association and as a Board Member for Retail Drinks Association.

DT: In your rare down time what is Cathi Scarce’s drink of choice?

CS: While an espresso martini is a stable favourite, I’ve also been exploring all the new gins I can get my hands on, particularly gins with botanicals. I call it quality control. drinks trade|31