Money Issues — Groceries for the Metro-politan Consumer

As natural as breathing, human beings generally eat three times a day. Whether pulling out a packed lunch or breaking bread over a hot meal, there’s more than meets the eye when it comes to our dining rituals. Realizing it or not, the whole process wouldn’t be complete without groceries. From fine dining restaurants to your home kitchen, food outlets target different venues, offering everything a person needs to sit and satisfy their palate. And during an economic slowdown where times are getting rough, you can bet your bananas that grocery stores are hanging tough – especially when it comes to Metro.

Now the province’s largest grocery banner,  the company undertook a massive consolidation initiative early last fall, branding Dominion, Loeb, The Barn, A & P and Ultra under the Metro name. A $200 million investment allowed 158 stores to advance their facilities and services. “Twenty million dollars went to the marketing side,” says Serge Boulanger, vice president of marketing. “The other $180 million went to upgrading equipment, making renovations, and improving the offer and quality of the customers’ experience.”

Upgrades include a vast array of first-rate inventory at affordable prices. “People are dining out less, but they also want to eat well. Instead of ordering a $25 steak in a restaurant, they can afford to buy our $15 Red Grill Angus steak, with the exact same high-quality.” Other improvements aim at expanding Metro’s volume of organic products, in order to lower prices. A new rollout campaign will take items off the organic shelf and mix them in with regular groceries. The new strategy gives greater product exposure, while allowing customers to compare organic prices to their counterparts.

Of course no grocery store would be No.1 unless it mastered social responsibility. “We’re not just working to increase sales,” says Boulanger. “We support Ontario agriculture during the harvest seasons to encourage local growers.” Metro recently lent a helping hand to the economy, expanding its employee manifest to 65,000 people between Ontario and Quebec. The company also backs charitable programs, such as Growing Great Kids, Breakfast for Learning, Safe Kids Canada, and Kids Help Phone. And it would seem Metro’s initiatives are working, with an increase in adjusted net earnings of 34.8 per cent during the 2009 first quarter. “Despite the difficult economic environment, we are well-positioned in our markets to look forward with confidence,” says CEO Eric La Flèche. “If one thing is certain, it’s that customers can count on Metro – a chain staying on top of the competition.”

www.metro.ca