Oct 2010 Financial News

GK management switch

Oct 20, 2010

Andrea Coy, who oversaw the expansion of the GraceKennedy subsidiary Hi-Lo Food Stores in the last 24 months, has been shifted to a new job as general manager of the conglomerate's World Brand Services, the distribution arm of GK Foods.

Coy replaces Stanley Beckford. Her task is to continue growing World Brand, GK Foods chief executive officer Erwin Burton said Tuesday.

Oral Richards, who shifts into Coy's old job as Hi-Lo general manager in an acting position, is a transfer from GraceKennedy's corporate offices, the company said.

Burton said the changes were part of GraceKennedy's succession management.

Richards meantime said the grocery chain has no plans to open any more new stores - but it is recruiting new team members, with a focus on customer service to drive market growth.

No. 2 player

Hi-Lo with 13 stores is now considered the No. 2 player in the grocery trade, following the contraction of one-time market leader SuperPlus.

"We have studied our customers' behaviour as well as (looked at) studies that speak to general customer preference, and have found that a key contributor to a satisfying customer shopping experience is the delivery of excellent customer service," Richards said.

"At Hi-Lo, excellent customer service delivery is one of our mandates and we recognise that this is a constant requirement for our customers - and not just now."

The chain also seems set on refreshing management and other senior posts in some locations, with recruitment advertisements running for a compliance and monitoring officer, a senior customer service representative, and an assistant store manager for Negril.

It is also recruiting management staff and accounting talent for its Montego Bay store, a 26,000 square foot operation at the Fairview business and shopping complex that GraceKennedy acquired from the Wayne Chen led SuperPlus in 2009.

Changing environment

"We are in a changing environment and it is important for us to continue to recruit new persons to join the team," said Richards.

"At this point there are no plans to expand the number of stores and we continue to listen to our customers in order to deliver optimal customer service. We are taking steps to ensure that adequate manpower is available to effectively operate the stores in the area," he said.

Richards comes to the job at a time when GK is seeing a change in the profile of the market - and predicting a shift in income - especially on the North Coast where business in various sectors is driven by the health of the tourism trade.

Referring to the impact of slower tourist arrivals in the region, especially in Negril, the acting manager said Hi-Lo expects "a decrease in sales realised from visitors (but) we will continue to build the sales from the local market."

Hi-Lo is also considering modifying its product assortment "to ensure the provision of optimal service to all our markets," he said.

Last year, Hi-Lo Food Stores recorded 17 per cent growth in revenue and a 25 per cent increase in net profit in 2009, Coy said earlier this year.

Food trading

The chain's performance in 2010 was not disclosed but turnover in the division under which it falls, food trading, has been flat in the first six months of the year, GraceKennedy has reported.

Richards said all distribution for the supermarket chain has been consolidated in GK's new distribution centre at Bernard Lodge, St Catherine, which should produce savings for the food trading segment.

World Brand Services also operates from that complex, a J$2 billion warehousing and distribution hub that was commissioned into service by GK in mid-2010.

The supermarket chain is currently present in seven parishes, with five stores in Kingston, one in Port Maria, three in Westmoreland, two in Montego Bay, and one each in Ocho Rios, Mandeville and Spanish Town.

A new store will open in Portmore shortly.

Locations offer grocery and non-grocery items and in some locations, remittance services.

Hi-Lo Food Stores started operating in Jamaica in 1954. It was originally owned by the Neal and Massy Group, but was acquired by GraceKennedy 25 years ago in 1984, then a chain of six stores.


Source:
Avia Collinder, Business Writer
austanny@yahoo.com
Jamaica Gleaner
Wednesday October 20, 2010

http://jamaica-gleaner.com/gleaner/20101020/business/business4.html