Metro expects food price pressure to continue in 2022 due to labor challenges and transportation costs. In addition, management has decided to offer a new COVID-19 bonus to its 45,000 employees in Quebec and Ontario.
• Read also: Metro announces an increase in its profit and its turnover
“We are very aware that there are inflationary pressures and that people are paying attention. They want more for their money,” conceded Eric La Flèche, President and CEO, adding that he has noticed that customers are buying more private label products, which are less expensive.
On Tuesday, the chain held its Annual General Meeting of Shareholders virtually. Metro reviewed its 2020-2021 financial results and unveiled its corporate responsibility plan until 2026.
“The second year of the pandemic has been trying and out of the ordinary for our entire team,” said the big boss, praising the work of his troops. He put more than $24 million in expenses related to the three COVID-19 bonuses offered to workers since the start of the pandemic.
This amount does not include the new bonus that will be paid at the end of February in the form of gift cards in the amount of $75, $150 or $300 redeemable in the Metro banners. This reward will not be offered to employees of Jean Coutu or Brunet.
Less variety
While Metro doesn’t plan to cut promotions, management makes no secret that pressure will continue to be felt on pricing and supply in 2022. In recent weeks, the company has had to juggle various issues that have caused some holes in the shelves.
“The Omicron variant has increased absenteeism among our suppliers, in factories, among carriers. […] There is no lack of food in the stores. I think our customers can eat well […], but it lacks variety. There are more holes than normal,” noted Mr. La Flèche.
The latter, without wanting to provide figures, stressed that his organization is also hit by the lack of talent, and several positions are vacant.
600 millions $
In 2021, Metro says it has made record investments of nearly $600 million across its network. Eleven supermarkets and pharmacies were opened and 17 sites were renovated.
In particular, the company can now count on a new fruit and vegetable distribution center in Toronto and a new site for processing online orders in Montreal. Last summer, Metro also completed the integration of Jean Coutu and McMahon into its operations.
For 2022, the management wishes to continue its digital transformation. Nearly 360 stores now have self-service checkouts and around 20 offer “Scan, Bag, Go” technology allowing customers to save the price of products as they are added to their basket.
The grocer announced on Tuesday a slight increase in its turnover for the first quarter of 2022, ended December 18, to more than $ 4.3 billion, a jump of 0.9% compared to the first quarter 2019-2020.
Net earnings reached $207.7 million, up 8.6%. With the collaboration of QMI Agency
No to stores without cashiers and the end of plastic bags
Metro President and CEO Eric La Flèche on:
The possibility of having stores without a cashier…
- “It’s not in our plans yet. These are technologies that are not yet mature for large supermarkets with 25,000 products. Our information technology teams follow this closely and they talk with the suppliers. It’s not on the radar in the short term.”
Projects in Quebec…
- “In Quebec, the construction of the new automated distribution center for fresh and frozen products in Terrebonne is progressing well and it should open in 2023. Combined with the expansion of the fruit and vegetable distribution center in Laval, which should be completed in 2024, these projects represent an investment of $420 million over five years.”
The fight once morest climate change…
- “Metro is committed to eliminating single-use plastic bags by the end of 2022 […] and increase the number of women and culturally diverse people in leadership positions. Also, to reduce its greenhouse gas emissions by 37.5% by 2035.”
The industry code of practice…
- “Metro is participating in the effort to write a code of good practices between suppliers and food retailers. Discussions have started. […] There is a working group that has been formed. […] We hope to be able to arrive at a common solution in an unregulated context. We are on the right path. Hopefully by spring.”
