The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Patricia A. Baker - Scotiabank Global Banking and Markets, Research Division - Analyst
: Firstly, Michael, when you look -- when you start thinking about the supermarket industry in Canada, and beyond the real accelerated push to
digital that's a result of COVID 2019, are there other things that you think other profound changes to the industry long term that will come from
this?
without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its
affiliated companies.
JUNE 18, 2020 / 5:00PM, EMPa.TO - Q4 2020 Empire Company Ltd Earnings Call
Question: Patricia A. Baker - Scotiabank Global Banking and Markets, Research Division - Analyst
: Okay. And just another question, and it might be difficult for you to answer, but obviously with the sales level that you had in Q4, it's obvious that
you're attracting, to a certain degree, customers that you've never had before.
Do you have any insight, Michael, into whether that is the case, that you're attracting people who've never shopped the Sobeys or FreshCo banners
in the past? And any kind of indication how big that impact might have been?
Question: Patricia A. Baker - Scotiabank Global Banking and Markets, Research Division - Analyst
: Okay. And just a quick one for you, Mike Vels. As the sales levels have tapered off and -- are you able to scale your labor hours pretty easily as you
see that happening?
without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its
affiliated companies.
JUNE 18, 2020 / 5:00PM, EMPa.TO - Q4 2020 Empire Company Ltd Earnings Call
Question: Vishal Shreedhar - National Bank Financial, Inc., Research Division - Analyst
: You had the Voila pilots going on. I'm wondering what you saw in that pilot. And if there are any learnings or anything that needed improvement
through that pilot?
without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its
affiliated companies.
JUNE 18, 2020 / 5:00PM, EMPa.TO - Q4 2020 Empire Company Ltd Earnings Call
Question: Vishal Shreedhar - National Bank Financial, Inc., Research Division - Analyst
: Is it too early to determine if there are differences to the basket size, maybe basket composition, margins and order frequency? Is it too early? Or
do you have a sense of that already?
Question: Vishal Shreedhar - National Bank Financial, Inc., Research Division - Analyst
: Okay. Just moving on here, in terms of Ocado store technology, do you have exclusivity on that as well?
Question: Vishal Shreedhar - National Bank Financial, Inc., Research Division - Analyst
: Okay. And I suppose you'll answer at a different point, whether you intend to use that.
Question: Vishal Shreedhar - National Bank Financial, Inc., Research Division - Analyst
: Okay. FreshCo, you're getting a decent quorum of stores running now, I'm now talking FreshCo in the West. Is that still a drain to earnings? Or is it
now inflected?
Question: Vishal Shreedhar - National Bank Financial, Inc., Research Division - Analyst
: Okay. And just switching gears here a little bit. The comment about conventional and one-stop shopping being more appealing to the consumer
was interesting. I'm wondering if as COVID evolved, you call it from March to April to May, I understand the demand for one-stop shop is still strong,
but has it faded consistently, perhaps in line with social distancing orders in the beginning and a little bit more freedom on behalf of the consumer?
|
