BigInterview
pays off for the Co-op. Few business sectors have undergone as much change as retail in recent years but, through it all, the name of the Co-op has continued to resonate with shoppers.
Balancing the requirement to modernise in the face of competition from hypermarkets and online shopping and the need to retain a traditional feel in its stores is something that has exercised the mind of Doug Field, Joint Chief Executive of independent retailer the East of England Co-op. He and his team have overseen a programme of improvements to stores so that they still appeal to customers in a competitive world. Doug said: “The retail market is changing rapidly and our job is to make sure that our stores remain relevant to shoppers. “We do have a reputation as a traditional retailer but we are using technology to understand what is being purchased in each individual store so that we stock what people want. “Because we are independent, we can respond to local needs and, although very often we are the only shop in the village, there are areas where we are close to the big supermarkets and if there is a fork in the road where you can go left to Tesco or right to a Co-op we want shoppers to choose us.” A key part of that is understanding the market and Doug said: “We are very much a convenience retailer. Our average spend per visit is less than £10 and we are noticing a trend towards more people shopping for the day.
“We live in a society where everything is immediate and nobody waits for anything and we are seeing more and more people popping in to buy that day’s tea, for example.”
One thing that customers have responded well to is the commitment to buy local. Sourced Locally, the East of England Co-op’s multi-award winning initiative, recently celebrated its ten-year anniversary and in the last financial year saw a 4.1% increase in yearly sales to £17.5 million. Since Sourced Locally began in 2007, more than £57 million has been ploughed back into the local economy Doug said: “One of the ways in which we have tried to be different is in our campaign to buy local. “Sourced Locally means that we buy from local producers which means that people who go to a Co-op may find things on the shelves that they cannot find elsewhere.” It’s an approach that works. Earlier this year, the member-owned organisation, which has more than 230 trading outlets across Norfolk, Suffolk, Essex and Cambridgeshire, announced its annual results for 2016/17, which showed sales and trading profit growth. Turnover increased by 2.7%, whilst underlying trading profit increased by 17% to £4.4 million from £3.8 million the previous year. That was despite the growth of online shopping, something which Doug contends isn’t quite right for the Co-op. Doug said: “Obviously, online shopping is growing but we do not do it and our experience is that with an average spend of £10 it does not work for us. In a rural
county like Norfolk, I don’t think any convenience retailer could make online shopping work at scale.
Development Programme with the results due to be announced on December 5.
“For us, it is about offering friendly customer service in stores stocked with what people want. Our business is about people.”
The six members of the East of England Co-op’s Learning and Development Team are responsible for designing and delivering training for more than 4,300 colleagues across a diverse range of businesses from food retail to stonemasonry.
That includes catering for shoppers with dementia, In 2016, the business received the Princess Royal Training Award for its Dementia Friendly Retail training programme, which has been completed by more than 90% of employees and is being shared with other businesses across the country. And the East of England Co-op was also named ‘‘Dementia Friendly Organisation - Large, of the Year’ at the Alzheimer’s Society rewards for its work. Doug said: “Our business has always been about people and we are very proud of our Dementia friendly programme. “It is about helping our colleagues to understand the problems facing people who can become anxious in stores and I am delighted that we are now passing on our experience to other organisations.” He is also pleased that the East of England Co-op has been announced as finalists in this year’s TJ (Training Journal) Awards, for both Learning and Development Team of the Year and Best Organisational
The team are also responsible for the East of England Co-op’s Apprenticeship Scheme which was launched following a successful pilot. Through the Apprenticeships employees are able to develop their careers, which helps the business retain local talent. That determination to retain talent is one of the reasons Doug recently took on the role of Chair of the New Anglia Local Enterprise Partnership. He said: “I have a strong belief that we have to make Norfolk a place of aspiration. There is a perception that for certain kinds of career you might need to leave Norfolk but I want us to be in a situation where if your daughter wants to pursue a career in quantum computing she can do it here, that she does not have to go to London. We want to keep our talent here. “We have world-class businesses and facilities in Norfolk and we do not shout loudly enough about them.”
Because we are independent, we can respond to local needs and, although very often we are the only shop in the village, there are areas where we are close to the big supermarkets and if there is a fork in the road where you can go left to Tesco or right to a Co-op we want shoppers to choose us. Co-op image: http://bit.ly/2xn7Wkm
NOVEMBER/DECEMBER 2017
NORFOLK VOICE • THE MAGAZINE OF NORFOLK CHAMBER OF COMMERCE AND INDUSTRY
31