Consumers are looking for discounts and low prices, and a privately held retailer has expanded its fresh grocery offerings this year.
In the midst of positioning the discount retailer as a go-to store for price sensitive shoppers during the worst inflation crisis since the early 1980s, Giant Tiger Stores fired its CEO.
The decision to dismiss Paul Wood was part of normal business operations, according to the private retailer. The board member has been named interim CEO.
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The head of communications said that they would like to thank Mr. Wood for his service and wished him well in his future endeavors.
After 17 years in various internal roles, Wood became the CEO of the company in September 2020. Supply chain logjams and price increases to business inputs were some of the problems he helped navigate the company through.
Wood seemed to leave abruptly to outsiders. He gave a tour of one of the company's stores in a suburb just outside of Toronto in what turned out to be his last interview as CEO.
If Wood knew the axe was going to fall, he didn't let on as he walked through the aisles, pointing out expanded collections of clothing, Christmas wares and $10-skeins of yarn that typically retails for $12 and up at other retailers.
Wood believed that Giant Tiger, which operates more than 260 stores between Alberta and Prince Edward Island, with most in Ontario and Quebec, is perfectly placed to help shoppers survive high inflation because of its ethos to keep costs low.
Wood said that it's in our genes. If we keep our costs low, we won't have to push up prices.
The company's strategy is the same, according to Scarlett.
Canadians seem to be feeling the effects of high inflation. According to a report, visits to food banks increased to record highs in March due to higher costs. The cost of food has increased substantially, with Canadians paying upwards of 11 percent more for groceries in September than a year before. The inflation rate is 6.9 per cent, which is higher than the overall inflation rate.
Giant Tiger has increased its fresh groceries products in response to shoppers searching for discounts and low prices. It is difficult to deliver on Giant Tiger's "savings to smile about" slogan due to higher fuel and commodity prices.
Wood said that the company has always tried to provide the lowest possible price in the market. The focus of ours hasn't changed at all. We are paying more attention to that than we used to.
In 1961, Giant Tiger opened in ByWard Market. He told the Canadian Business Journal in 2011 that he opened the discount retailer because of fond memories of his mother working at the discount store.
The store sells a variety of wares, including home decor and small furniture, clothing, toys, pet products and food, and promises to sell at the lowest prices on the market. A four-cup Pyrex measuring cup can be found for $7.97 on Giant Tiger's website, while the same cup can be found at Walmart Canada for $16.
Wood said that one of the main reasons Giant Tiger is able to keep costs low is due to its private trucking fleet.
Many other retailers are forced to pay profit-making fees to third-party transport companies in order to get goods to brick-and- mortar stores. Those fees can either be absorbed or passed on to consumers.
Wood said that the 150-truck and 700-container fleet has been a key factor in keeping costs low.
During the Pandemic, Giant Tiger continued to improve its savings strategy. The current high-inflationary environment has proved beneficial in the current supply chain disruptions. The practice of allowing purchasing managers to change brands for certain items if they weren't available was one of the changes that took place.
The company manages the amount of goods it has on hand tighter than it might have otherwise. Wood said that it leaves room for purchasing managers to source deals on a weekly basis.
Storerooms are small so it doesn't have to pay for big-box store space. Giant Tiger can pass on savings by keeping a spare store design and choosing simple light fixture.
Wood said that keeping frugal is important to navigating a difficult macroeconomic environment. Giant Tiger has decided to use digital advertising instead of print advertising this year. Employees at all levels of the company are encouraged to work to keep prices low. We are serving the customer. We can figure out the best way to do what we need to do at the lowest cost if we keep that in mind.
The company will keep to its low-cost vision despite Wood's departure. The focus ofGiant Tiger is to provide Canadians with the products and groceries they need at the lowest price possible. She said that they look forward to expanding further in the future.
The email is bbbharti@postmedia.
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