FEDERATED CO-OP SURVIVES A TOUGH 2019 WITH INNOVATIONS IN TECH AND MERCH

Weathering the downturn that persisted throughout much of the Prairies last year, Federated Co-operatives Ltd. reported a drop in sales to $325 million in 2019 from $359 million the year before.

According to the company’s annual report, challenges facing the co-op included poor weather that impacted the ag side of the business, economic conditions that pressured the home and building sector and stiff competition within the food sector.

However, despite this adversity, the Ag and Consumer Business Unit, of which the Home and Building Solutions Department (HABS) is a part, made improvements internally to minimize the economic impacts. The increased use of technology was one of them.

“Overall, 2019 was a challenging year, with a soft economy and lumber depreciation having a significant impact in the Prairie provinces,” says Cody Smith, director of HABS. “Specific to the Home and Building Solutions business, FCL and the Co-operative Retailing System have not been immune to these headwinds and it had an impact on our sales, reducing them to $325 million from $359 million.

“We continue to remain excited about our Home and Building Solutions’ longterm vision, investing in several key areas that make our business viable well into the future,” Smith says. “The first area was a new POS platform, from Mi9, that is currently being rolled out to local Co-op stores and is expected to be completed in 2021.” expansion of its retail footprint. The chain has even made overtures to entering the Ontario market. In October 2018, Canac secured property in the eastern Ontario town of Hawkesbury. Laberge expects construction there to begin in 2021.

Canac’s recent store opening is modelled after its Notre-Dame-desPrairies store, which opened a year ago.

The initiative is expected to make procurement easier and more secure through handheld mobile devices. “This transition is vital to us gathering more information and better utilizing our data for business decisions.”

Over the past year, the Home and Building Solutions business was restructured to increase its focus on lumber, Smith notes. “We continue to build value for the Co-op retailing system by adding lumber personnel to centrally procure lumber on behalf of the stores.”

That focus on building materials is also being reflected in the stores with new merchandising. “Another area of investment in 2019 was new LBM selling centres that fit an eight-foot bay, showcasing core building material categories that are typically difficult to display,” Smith adds.