The Chronicle Herald (Provincial)
Business brisk at Empire
Sales jumped as consumers hunkered down, stocked up
If you thought you saw some overloaded carts while out shopping last month, you weren't dreaming.
Empire Co. Ltd. says samestore sales growth for the four-week period starting March 8 was about 37 per cent, excluding lower fuel demand and the effect of Easter.
The Stellarton-based parent company of the Sobeys grocery chain gave an update Wednesday about the impact of COVID-19 on its operations.
The lengthy report offered a glimpse into the effect the coronavirus has had on a large national retailer.
Same-store sales for the first weeks of the fourth quarter were strong, reflecting an improving trend that began in the latter half of the third quarter, Empire said in a news release. However, starting Feb. 28, the company reported significantly higher sales in all categories except for fuel, which has seen demand crater since restrictions were put in place to fight the coronavirus.
Sales jumped again from March 8 onward as customers began to stock up in preparation for possible stay-at-home requirements.
By March 22, Empire said, the sales intensity began to subside, although it was still significantly above prior-year levels.
"Management's top priorities are ensuring the health and safety of our teammates and customers, keeping our shelves stocked and supporting charitable organizations to immediately address urgent needs in communities across Canada," said Michael Medline, president and CEO of Empire, in the release.
When 98 per cent of Queen of Cups Lingerie's revenue vanished in the COVID-19 crisis, owner Abbey Pond knew she had to move to online sales.
For the past few years, Pond had grown business from her studio in St. Stephen, N.B., where clients could visit and be fitted for a custom-made bra. But that business model didn't work in the world of COVID-19, so she had to pull the trigger on a longstanding plan to sell online.
“Needless to say, we were stressed,” said Pond.
“It was time for tough decisions. There were moments when it was tempting to just give up.”
Queen of Cups already had an online shop and booking system, but Pond had to train staff and get used to doing online fittings. Now Queen of Cups is part of the monthold global trend of companies accelerating e-commerce as a sales channel. It's a way for traditional retailers to survive the current lockdown, and it may prove a way to accelerate the return to profitability for the survivors.
Experts in e-commerce — the purchase of goods on the internet — say two things have accelerated the growth of online selling. First, traditional retailers and producers of consumer products realized they couldn't sell face-to-face in a world infused with coronavirus pathogens, so they had to develop online strategies. Second, the broad swath of society that had been slow to order things online was forced to grow comfortable with the process.
“I think we're going to see a lot more of that,” said Jeff W. White, co-founder of Halifax-based Kula Partners, a marketing agency serving business-to-business manufacturers across North America.
“A lot of consumers are shifting in the short term to an e-commerce model and . . . I think there's a shift in what people are looking at in terms of fulfillment. How do you make staff safe? And customers safe? We're all figuring that out and e-commerce is part of it.”
The pandemic is allowing those who specialize in e-commerce to do well. Businesses that are quick to adapt to can blunt the ill effects of the pandemic and position themselves for the recovery.
“In Manhattan, everything gets delivered, but we were behind them,” said John Leahy, the CEO of Halifaxbased web-development agency immediac.
“We're not behind them anymore. People here are getting everything delivered, whether it's beer or a sandwich or lawnmowers.”
Leahy said immediac has been installing online storefronts that range from kitchen companies to office furniture to craft breweries. One client is Big Spruce Brewery in Baddeck. It had been selling beer at its Spruce-tique retail outlet, but growing sales have made it more reliant on the Spruce Caboose, the van that ships out product ordered online.
Allyson England, whose Nova Box allows people to go online to order boxes of Nova Scotian goods, said she has noticed a change in the market.
“Historically, people have purchased boxes as a gift for their family and friends who live away,” said England.
“Lately, I've actually noticed an increase in people buying the boxes for themselves. Since we are spending more time at home, I think people are craving items that are local, practical and comforting.”
One young Atlantic Canadian business that's benefiting from the boom is St. John'sbased Oliver POS, which has developed a plug-in point-ofsale solution for Woocommerce, which is e-commerce for websites that run off Wordpress.
CEO Mathais K. Nielsen said the number of hosts he is working with has “exploded.” He added that many owners are being forced to get their systems going quickly and are fine-tuning them as they prepare for the recovery.
“We've seen a lot of signups,” said Nielsen.
“They have suddenly gained a major market online that they didn't know they had. And now they want to position themselves to grow it after (the pandemic ends.)”
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