Mess age f ro m the C E O The effects of the economic recession in 2009 continued to affect retail businesses across Canada. While the impact in Alberta was less severe than in other provinces, consumer uncertainty continued, with many retailers, including Calgary Co-op, feeling the impact through decreased sales and mounting pressures on margins and profitability. While the 2009 financial year was successful for Calgary Co-op, we recognized early on that it would be difficult to maintain that momentum as consumers began to feel the lingering effects of the slumping economy. The result has been a decline in sales and gross margin in some areas of our operations. Financial results for our 2009 financial year ended October 31, saw sales decrease to just over $1 billion compared to $1.06 billion in 2008. Assets were $393 million compared to $374 million in 2008. Membership continued to grow from 434,446 in 2008 to 438,980 in 2009. A copy of the audited financial statements for our 2009 financial year starts on page 20 of this report. In 2010, our plans are to increase sales, enhance our marketing programs and better promote our products and services in order to retain current members and attract new members. Store renovations and development plans will continue to capitalize on opportunities for growing our lines of business to position the company for future success. Although the company continues to do well overall, we know we must continue to focus our efforts on reducing costs, reducing or eliminating discretionary spending, reducing waste, and increasing operational efficiencies and effectiveness in order to sustain that success going forward. Increased sales are critical to long term success so we must also ensure that we are operating at the top of our game by offering best quality products and unique variety combined with superior member / customer service delivery. While our facilities and product offerings attract people to our stores, it is the friendly, professional service from employees and our quality products that bring them back. I believe that our employees embody the expertise, skills and commitment necessary to carry out the business strategies that will best meet the needs of our memberowners and the greater community, and help Calgary Co-op to achieve its Vision of being the premier shopping destination in the communities we serve. I am proud to have joined the Calgary Co-op team and look forward to leading our company in its continued success.
N. Deane Collinson, Chief Executive Officer
2009 Annual Report | 5