It is hard to remember a time when our industry has changed so fast, so quickly. The impact of the Coronavirus is there at every level of the value chain in food. Every aspect of every food business has been impacted. In my conversations with many people, it is the uncertainty that is the biggest challenge. They can figure out how to give people the physical distance they need and they are already looking for alternative sources of supply if they are concerned. The questions about the length of the impact and the depth of the change are tough to answer. Unfortunately I do not have the answers. What I have been trying to help people with is how to react in the situation we are in and the balance between short term and long term solutions. SKUFood members we will be having a cooler talk Friday April 3rd at 2 pm Atlantic (1 PM Eastern) where we can have a conversation about what is happening and I can answer specific questions to help your business. This is for SKUFood members only and we will send out a separate link.
Here is a summary of the response from some of the different food retailers in Canada. I might have missed some and I am always interested to learn more so I welcome your insights. Thank you to Stewart Samuel from IGD Retail Analysis who compiled a list that I shared on Linkedin. All of the stores have made changes to the shopping experience to protect employees and consumers. These changes have happened very quickly and trust me it is not easy to implement these types of changes when none were planned.
Sobeys
- Changed shopping hours to give employees a break, get stores back in shape and also offer the first hour reserved for seniors and at risk shoppers.
- Implemented a Hero Pay program to reward store and distribution centre employees.
- Launched the Community Action Fund to give 1,500 stores autonomy to help in their own communities.
Loblaw
- Changed shopping hours to give employees a break, get stores back in shape and also offer the first hour reserved for seniors and at risk shoppers.
- Reduced delivery fees and waived pick up fees for online shopping.
- 15% increase in pay for store employees and distribution centre employees retroactive to March 8th.
- Shoppers Drug mart funding virtual medical care in provinces where it is not provincially funded.
Walmart
- Changed shopping hours to give employees a break, get stores back in shape and also offer the first hour reserved for seniors and at risk shoppers.
- Appreciation bonus and Thank You premium to associates plus offering enhanced employee discounts.
- Actively hiring 10,000 associates to service increased demand. In the U.S. they announced they would be hiring 100,000 and they would offer positions first to employees laid off from businesses they work with.
- Donating $1,000,000 to charity partners and the Walmart Foundation will be donating $1,000,000 to causes within Canada.
- Suspending flyer activity for the time being.
Metro
- Donating $500,000 to Feed Ontario and Les Banques Alimentaires du Quebec and $500,000 to United Way Centraide Canada.
Save On Foods
- Changed shopping hours to give employees a break, get stores back in shape and also offer the first hour reserved for seniors and at risk shoppers.
- $2 per hour premium for store and distribution centre employees.
London Drugs
- Moved 18,000 cases of Girl Guide cookies through their network to be sold in stores so Girl Guides could still benefit from their fund raising initiative without having to be at risk out selling cookies.
Retailers have been communicating with consumers through loyalty program platforms and you have to give credit to the leaders for being the face during these challenging times. My list might be missing some items and perhaps you have heard of other local initiatives. I also know there are suppliers across the industry making changes in their operations and rewarding their employees. When you are talking to your customers mention their reaction and let them know what you are doing in your business.
The food industry response is an example of leadership. Honestly it is disappointing to see some other sectors in this country sit on their hands. Financial institutions and telecommunications come to mind. Huge industries, that are more concerned about reducing their risk and watching from the sidelines. Perhaps we will see more disruptive change to force them to be part of the solution.
We also have to keep looking to the future and some of the other trends in the industry. I am excited to be part of the Go To Market webinar series with Perennia. Next Thursday April 9th we will be talking about how to select a distributor and/or a broker. These are great sessions packed with lots of information to help your food and beverage business.
I am always interested in what you are doing to react to the challenges we face. There are so many heart warming stories to share so please let me know and if you are ok with me sharing your stories and initiatives. I would like to dedicate the space next week to some of the great things happening with suppliers. We have to face reality but it is also nice to hear the good news that comes with challenges. Send me your stories at peter@skufood.com or give me a call at (902) 489-2900.