COVID-19 Industry Update: promotions versus people

Paper store flyers have declined in popularity with the advent of digital alternatives. But concerns about the transmission of infection may be hastening their obsolescence.

While some hardware retailers have pulled flyers as a temporary measure to avoid driving in-person store traffic, other retailers are doing away with the medium altogether. Loblaw Cos. Ltd. announced it is permanently transitioning to digital promotions online and through its PC Optimum app. Meanwhile, Canadian Tire has begun testing the waters, announcing earlier this month it has “temporarily paused” production of flyers in Ontario.

Doug Anderson, president and CEO of Peavey Industries, made the switch early, eliminating paper flyers back in March. Headquartered in Red Deer, Alta., and catering to a farm and ag customer base, Peavey’s has included clear instructions in its digital flyers on how to place orders online and come to the stores for curbside pickup.

 

How to move inventory while doing the right thing?

Retailers are weighing the need to move inventory against the possibility that they may be perceived as promoting products that are non-essential. That concern extends to how they position their flyer promotions, without jeopardizing the ability of hardware and home improvement stores to stay open in provinces where they are allowed to.

Home Depot Canada, for example, is being very socially responsible in its messaging. It has replaced its flyers with messaging that reinforces the importance of not just shopping online, but shopping for products needed to get through the current crisis. A message on the retailer’s website reads, “The Home Depot flyer has been temporarily paused so we can focus on the products our customers need during this time. Continue to shop for all your home needs online and homedepot.ca and take advantage of our convenient delivery & pick-up options, including curbside pick-up in our parking lots.”

However, a look at Canadian Tire’s online flyer, for example, reveals that it looks identical to the paper version. RONA’s promotional efforts are more in sync with the current situation; a recent flyer was geared to limited seasonal activities, while another flyer is actually a message to customers reminding them to stay home and order online as much as possible.

 

Promotions can undermine the notion of “essential” retail

The use of promotions that are deemed unwarranted also has an impact on retailer workers. They must deal with larger volumes of customer traffic, putting them at greater risk. Case in point: the union that represents workers in Loblaw and Superstore grocery outlets in Manitoba issued a press release earlier this week decrying the chain’s implementation of a “No Tax Sale” from April 24 to 30 on non-food items. These include gardening supplies, clothing, barbecues and patio furniture.

According to the release, issued by UFCW Local 832, “These events draw large crowds and potentially put the safety of our members, and the public, at risk.” The union represents 17,000 members, including more than 7,000 who work at Loblaw, Safeway, Red River Co-ops and many other smaller co-ops across Manitoba.

“The sale is on non-essential items only and is slated to be held in every province west of Quebec,” said Jeff Traeger, president of the union. “We believe this goes against the intent of the Public Health Order for Manitoba by encouraging people to leave their homes for non-essentials goods.” The release called on the provincial government to intervene and put a stop to this sales event.

“We see this sale as reckless and irresponsible,” Traeger said. “It puts our members and the public at risk for non-essential shopping reasons, and we call on Loblaw to use a common-sense approach at this time and cancel this sale.”

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