Page 21 - Demo

EXCLUSIVE INTERVIEW What extra measures has Metcash needed to implement to provide a safe and highly productive environment for both its staff and suppliers? In early March, we basically reset the business to focus on three things. Being an essential service, how do we protect our staff, and how do we help our retailers protect themselves and their customers? That became priority number one and we took all the necessary measures to absolutely make sure we could protect our team while we continue to run the business. The second measure was to make sure that we can keep our supply chains operating. Whatever that takes – running weekends, 24 hours a day. It was focused on what we need to do to make sure we can continue to supply to our retailers. And the third measure: how do we keep our business financially strong? We knew there were parts of our business where retailers were impacted. So, we had to protect the business to ensure we could continue to operate and supply our retailers. How has your community interaction changed over the past few months? There’s no doubt there was a change in consumer behaviour, which was a positive for us as people were shopping more locally. We saw that across a number of our stores, and that really fits our network quite well because we don’t have many of those big mall-based stores you’d find with the chains. On community, not much has changed, to be honest, because our retailers were already very good at what they do. IGA’s Community Chest offers donations back to the local community. I’d run into customers in the stores and they’d tell me that ‘without the support for our swim team, we wouldn’t be able to have a swim club’, or ‘without $500 for the local football club, it wouldn’t be able to happen’. Our retailers are so good at their role in the community. The crisis has re-emphasised the importance of these guys in their communities. Since the pandemic began, what are the changes that you’re seeing in the retail, consumer and supply space? I’d say 20 years-plus of consumer behaviour change was reversed in a matter of weeks. Over the past 20 years, Ritchies IGA Supermarket, Townsville. people have been shopping more often and with smaller baskets, referring to the ‘just in time’ trend. The mentality was ‘I’m not going to buy anything for tomorrow night because I’m not sure what I’m going to do tomorrow night, so I’ll just stop by and pick up something for tonight’. And that was the way people shopped. There were a lot of smaller baskets, but a lot of shopping trips. Since COVID-19, people are now saying, ‘I’m not sure I’m going to be able to go to the store and I need to fill up my pantry’. Very few people were scratch cooking from home. They’d prepare something very quickly, they’d order food in, or they’d go out. Now, suddenly, families are at home, working from home, people are cooking and eating together. That’s a big change for a lot of people. All of a sudden that whole trend reversed. So, it’s a real question about whether that’ll ever change again. We’ve seen a big uptick in online growth because those barriers that were there before are removed now, and whether people continue to work from home and order more online, that’s certainly a possibility. TO PAGE 20 AUG, 2020 RETAIL WORLD 19