National Post (National Edition)
Metro works to boost `click and collect' drive
MONTREAL • Grocer Metro Inc. is accelerating efforts to expand its e-commerce capabilities after online orders almost tripled in the supermarket operator's most recent quarter.
Some 170 Metro stores in Quebec and Ontario will offer “click-and-collect” service by the end of the company's 2021 fiscal year in September, chief executive Éric Richer La Flèche said Tuesday. That's up from a previous year-end target of more than 100 locations, which the executive had disclosed in November.
Retailers such as Metro have seen online orders soar during the pandemic as many shoppers steered clear of stores out of fear of catching the coronavirus. Keeping supermarkets fully supplied in 2020 “was sometimes challenging” as overall food demand rose, though the situation has now stabilized, La Flèche said.
“E-commerce is one of the highlights of the pandemic,” La Flèche told reporters on a conference call. “There was a substantial acceleration in 2020. Sales remain elevated, and our teams have gotten used to these volumes. Our model, although close to capacity, works well.”
La Flèche made the comments after Montreal-based Metro reported fiscal first quarter net earnings advanced 12 per cent to $191.2 million, or 76 cents per diluted share. The company also boosted its quarterly dividend to 25 cents a share from 22.5 cents.
Revenue for the 12-week period ended Dec. 19 rose 6.2 per cent to $4.28 billion, paced by a 170 per cent jump in online food sales. Metro did not specify online revenue. Metro's e-commerce team has doubled in the past few months, La Fleche said without providing specifics.
E-commerce is so popular that Metro is planning to open a store in Montreal that will be dedicated to preparing online orders, the CEO said. Construction is under way and the location will open this summer, he said.
Although online orders generate additional costs, the increased volumes mean Metro is still able to turn a profit, La Flèche said.
Still, e-commerce is less profitable than in-store sales “so we really have to be efficient,” the executive said. “Our model is evolving, and we are investing in a lot of technologies to become more efficient.”