Industry Day 2017 Monday, September 11, 2017
Agenda Welcome & Business Update Banner Strategy& Questions Tim Pellerin & Caroline Duchesne Banner Strategy& Questions Tim Pellerin, Laura MacLachlan and Andrew Stenhouse Q&A with Bret Mitchell Partnership Awards Golf Housekeeping Items Tim Pellerin
Business Update Key Business Initiatives Progress Tim Pellerin
CUSTOMER PILLAR Service Excellence Service Excellence Team Leadership Development Leadership Training – Managers Manager’s Essentials Training – New Managers HR Leadership – 8 Part Training Series Peer Collaboration Pilot RPS Secondments at the PORT – ambassadors Customer Satisfaction Measures Banner Strategy Service excellence to support varied shopping experiences
Average Monthly Growth CUSTOMER PILLAR Online Sales by Category – MAT Average 750ml Sold Wine Spirits $15.34 $29.04 $29.13 $60.41 $50.70 $117.26 Location Net Sales $220,000 Average Monthly Growth 70%
CUSTOMER PILLAR Online Sales Average Basket $72.15 2.6 $320.00 5.6 Location Dollars Units Online customers have increased their visits to our retail stores.
CUSTOMER PILLAR Online Sales – What’s Next? Marketing & Reporting: Promotion of channel and program integration Formalized reporting and management of channel Post Purchase: Personalization/surprise and delight with order fulfillment Customer follow-up/survey post purchase New features to be explored: Digital and/or physical gift cards and event tickets Barcode/label scanning to add products to list and cart
CUSTOMER PILLAR 36 Pack Beer Program & “Big Beer Sale” Results FY18 weeks 1-10: Beer sales declined -2% vol. / -0.2% $ LP OTO penetration 25% (26% LY) FY18 week 11: launched $59.99 36pks (top 4 brands) sales grew +0.3% vol. / 0% $ (weeks 11-22) LP OTO penetration = 30% (27% LY)
CUSTOMER PILLAR 36 Pack Beer Program & “Big Beer Sale” Results “Big Beer Sale - $53.99 36pks” Natal Day Long Weekend: LP OTO sales = 35% of beer sales (vs. 28% Natal Day wk LY) Total beer $ sales grew +1.4% & vol. +6% “Big Beer Sale - $53.99 36pks” Labour Day Long Weekend: LP OTO sales = 34% of beer sales (vs. 27% Labour Day wk LY) Total beer $ sales grew +1.1% & vol. +5%
Business Update Financials Caroline Duchesne
FY17 Year End Results - YTD Income Statement Net Sales 611.8 COGS 274.9 Gross Profit 336.9 Total Expenses 97.7 Net Income 239.2
FY17 Gross Sales by Category (in millions) - Gross sales vs. budget $6,917,430 - Gross sales vs. last year $4,246,530
FY17 Retail Transactions by Region FY17 Average Retail Transaction - $29.68 Strat Plan 5th Year Target - $32.21
FY18 P5 YTD Gross Sales by Category (in millions) - Gross sales vs. budget $2,960,843 - Gross sales vs. last year $4,318,692
FY18 P5 YTD Category Performance vs Last Year Beer Spirits Wine Total RTD
FY18 P5 YTD Regional Retail Sales (in millions)
Banner Strategy Right Store, Right Place, Right Time Banner Strategy
Banner Strategy Assortment Experience Design Premium wine & spirits (2250 skus) Local beer, wine and spirits Select craft beer All products available for purchase online Assortment Unique shopping experience grounded in discovery and education Event space Rare Finds Room Experience Manager, RPS, Sommeliers/Tequilier A destination shop for Wine & Spirits Experience Modern/urban design showcasing product Premium experience 8300 sq ft Design
Beer Experience Banner Strategy Assortment Experience Design Assortment to support all beer occasions Refined selection of pack size Local craft beer & cider Wine & Spirits to be offered as community in-fill strategy Growlers/Tap strategy to showcase range of offering (scalable) Experience Education, discovery and celebration of beer occasions through engaging and immersive experiences Event space Tap wall/bar Experience Manager A destination shop for beer (fully refrigerated) Design In Progress: Optimistic, warm, urban authentically Nova Scotian Clear wayfinding and product types Shoppable Immersive
Banner Strategy Assortment Experience Design Full A assortment + select Port assortment (wine & spirits) Local beer, wine and spirits OTOs: Buyers Picks wine & spirits (formerly Limited Finds) Experience Display Strategy: NEW ● Buyers Picks Our Picks ● Local Tasting machines/event area in The Port sections Walk in cooler (Cool Zone) Retail Product Specialists WIFI Design Natural, Nova Scotian & optimistic design treatment Replicable with personalized nod to local community Zonal Strategy with defined mini ‘store-in-store’ to break up flow Create moments for discovery 10,000-13,000 sq ft
Banner Strategy Assortment Experience Design 550+ top selling products Local community assortment 15% flexibility at manager’s discretion Assortment Community store experience Approx. 30 stores Wines by Discovery Taste Profile Improved refrigeration for Refreshment: Roller racks Mini walk-ins Experience Refreshed design of existing store infrastructure removal strategy to neutralize space and create banner integration 3400 +/- sq ft Renovate some, replace others Design
Banner Strategy Assortment Experience Design 300 top selling brands 750 ml formats Small boxed wine offering 12-pack beer Selected LP OTO and 1140 ml spirits Experience Convenience/neighborhood store experience Chilled white wine & beer Wines by Discovery Taste Profile Limited number of displays Currently 4 stores in Halifax area Design Clean, streamlined design Consistency & replicable Ease of shop 1400 - 1500 sq ft
Banner Strategy Assortment Experience Design Refreshed assortment grades OTO strategy Experience Standard Store offering approx. 50 stores in network 10 locations: Tasting Machines RPS Design Natural, Nova Scotian & optimistic design treatment Elements from Signature & Express will define new store design 4000 - 7000 sq ft
QUESTIONS?
Q&A WITH BRET MITCHELL
LOCAL WINE PARTNER OF THE YEAR PARTNERSHIP AWARDS 2016 LOCAL WINE PARTNER OF THE YEAR
LOCAL WINE PARTNER OF THE YEAR PARTNERSHIP AWARDS 2016 LOCAL WINE PARTNER OF THE YEAR Benjamin Bridge
LOCAL SPIRITS PARTNER OF THE YEAR PARTNERSHIP AWARDS 2016 LOCAL SPIRITS PARTNER OF THE YEAR
LOCAL SPIRITS PARTNER OF THE YEAR PARTNERSHIP AWARDS 2016 LOCAL SPIRITS PARTNER OF THE YEAR Nova Scotia Spirit Co
SPIRITS PRODUCT OF THE YEAR PARTNERSHIP AWARDS 2016 SPIRITS PRODUCT OF THE YEAR
SPIRITS PRODUCT OF THE YEAR PARTNERSHIP AWARDS 2016 SPIRITS PRODUCT OF THE YEAR The Glenlivet Founder’s Reserve Corby
LOCAL REFRESHMENT PARTNER OF THE YEAR PARTNERSHIP AWARDS 2016 LOCAL REFRESHMENT PARTNER OF THE YEAR
LOCAL REFRESHMENT PARTNER OF THE YEAR PARTNERSHIP AWARDS 2016 LOCAL REFRESHMENT PARTNER OF THE YEAR Tatamagouche Brewing Co.
PARTNERSHIP AWARDS 2016 RTD PRODUCT OF THE YEAR
No Boats on Sunday Cider PARTNERSHIP AWARDS 2016 RTD PRODUCT OF THE YEAR No Boats on Sunday Cider Peller Estates Winery
BEER PRODUCT OF THE YEAR PARTNERSHIP AWARDS 2016 BEER PRODUCT OF THE YEAR
BEER PRODUCT OF THE YEAR PARTNERSHIP AWARDS 2016 BEER PRODUCT OF THE YEAR Moose Light Radler Moosehead Breweries
Business Update Golf Housekeeping Items Tim Pellerin
Thank you