Member Report 2018 - Retail Agribusiness | UFA Co-operative Ltd.

Member Report 2018 - Retail Agribusiness

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“2018 was the second consecutive year of positive year over year sales growth for our UFA Farm and Ranch Supply stores. UFA is creating a better overall shopping experience for our members and customers thanks to improvements in service and supply levels, keeping the right products on the shelves at the right time as well as enhancing our marketing and promotional activity.”

Kevin Hoppins

Board Chair

Carol Kitchen

President & CEO

Retail AgriBusiness had a strong 2018 with sales revenues of $134 million, an increase of $4.7 million over 2017. 2018 was the second consecutive year of positive year-over-year sales growth for our UFA Farm and Ranch Supply stores. Enhancements to service levels, in-stock position, marketing and promotional activity all helped to drive improved retail performance at UFA Farm and Ranch Supply stores. Increases in customer traffic and a 3.58% growth in average sale per transaction also helped spur overall sales revenue.

Our customers rely on us for the products they need and in 2018 we were up to the task. We identified the top 1,500 best-selling retail products and kept them in stock 99.0% throughout the year. Our customers have a keen eye for value and the 13 retail flyers we promoted in 2018 helped drive traffic to our stores. Feedback and reviews are also key to staying on top of member and customer demand and our merchandising and store teams executed 60 different product line reviews and assortment updates during the year.

We are committed to building and sustaining a financially strong co-operative, and sometimes that means making difficult decisions. In 2018, the UFA Board of Directors and senior management made the difficult decision to close two retail businesses: our non-core Spruceland Lumber business in Fort McMurray and our Pincher Creek Farm and Ranch Supply store. As challenging as these decisions were, our leadership was confident that they were in the best interests of our co-operative.

Investment in our retail business remained a focus, with eight store remodels completed in 2018 including Airdrie, Athabasca, Camrose, Grande Prairie, High River, La Crete, Provost and Vermilion. The focus of these upgrades included improvements to the overall customer shopping experience. The success of these investments has spurred on work at our Claresholm and Strathmore stores to be completed in February 2019, with eight more slated for 2019 in the Brooks, Fahler, Medicine Hat, Olds, Ponoka, Red Deer, Spruce Grove and Stettler communities.

Late in 2018, we announced the relocation of our Ponoka Farm and Ranch Supply store to a new site in Ponoka. The investment we are making in this relocation reflects our commitment to customers in this region. The location of the new store will better serve the local market and the upgrades at the new site will offer members, customers and staff a significantly improved shopping experience.

In 2018 UFA embarked on a project to replace our current Point of Sale (POS) system with Microsoft Dynamics 365 in all Farm and Ranch Supply stores and Petroleum Agencies. This will enable us to introduce E-Commerce and offer our members and customers an enhanced online shopping experience. In addition to E-Commerce, UFA will launch Microsoft Dynamics D365 Customer Relationship Management (CRM) which will provide UFA with improved tools to better service our members and customers.

$134M RETAIL SALES.

Up from $129 million in 2017.

New Technology.

Invested.

in 2018 ufa began planning to replace our current point of sale system and to introduce e-commerce to offer our members and customers an enhanced online shopping experience.

8 stores remodeled.

airdrie. athabasca. camrose. grande prairie. high river. la crete. provost. vermilion.

UFA invested in these locations during 2018 to improve our members’ shopping experience.

34 AUTOMATED EXTERNAL DEFIBRILLATORS.

Installed.

“TO KNOW THAT ALL UFA FARM AND RANCH SUPPLY STORES ARE GOING TO HAVE THIS LIFE-SAVING EQUIPMENT ON SITE MAKES ME INCREDIBLY PROUD TO BE A MEMBER AND GRATEFUL TO UFA FOR MAKING THIS A PRIORITY.”

KIM RUETHER, UFA MEMBER

FAIRVIEW, ALBERTA

1 important move.

WE ANNOUNCED LATE IN 2018 THAT OUR PONOKA FARM & RANCH SUPPLY STORE IS MOVING IN 2019 TO A CONVENIENT NEW LOCATION IN TOWN TO BETTER SERVE OUR MEMBERS AND CUSTOMERS.

2 difficult decisions.

made.

In the best interest of our co-operative, we closed the spruceland lumber business in fort mcmurray. As well, UFA closed its Pincher Creek farm and ranch supply store late in the year.