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Planning our Future
Dinner and Discussion May 2018
Goals• Share member-level information about Co-op’s:
• current situation • position in larger marketplace• current thinking from business planning
• Gather your feedback on priorities for the coming 3-5 years
• Discuss other topics of interest
Agenda
• 2018 Shopper Survey
• Our Current Situation and Trends Report
– Internal
– External
• Priorities for 2019 and Beyond
• Discussion
• Break
• Council Roundtable (approx. 7:15)
2018 Shopper Survey
• Demographics, Satisfaction, Preferences
• 1452 Responses (1333 last year), not scientific
• 86% Member-Owners (approx. 14% of members)
2018 Shopper Survey
• 44% at least 50% of shopping at co-op(down from 50% in 2012)
• 44% shopping at HMC 16 years or more
How far do you travel to Co-op?
Only 20% commute to Montpelier
<3 miles33%
3-12 miles32%
> 12 miles35%
Demographics- Ages
Roughly half between 55 and 74 years oldHalf of those above 65
Age class 2014 2018<25 years old 2.3% 1.6%25-34 18.8% 12.1%35-44 21.1% 16.1%45-54 17.5% 14.9%55-64 24.4% 24.1%65-74 13% 24.7%75-84 2.1% 4.3%>85 years old 0.7% 1.2%
Demographics- Household Income
Demographics- Education
0.0%5.0%
10.0%15.0%20.0%25.0%30.0%35.0%40.0%45.0%50.0%
less than HS d
iploma
HS diploma
some colle
ge
2 yr co
llege
/tech
/trade degre
e
4 yr co
llege
degree
graduate/professi
onal degree
How well are we meeting your needs?5 = “very well”
Avg. % well or very well
Overall Store 4.3 89%Overall Products 4.3 88%Overall Service 4.4 86%
How well are we meeting your service needs?
How well are we meeting your customer service needs? 2010 2017 2018Knowledgeable staff 4.30 4.46 4.54Availability of staff 4.25 4.32 4.43Friendly and courteous 4.41 4.34 4.40Telephone 3.92 4.13 4.11Responsiveness to feedback 3.35 4.20 4.27Website 3.75 4.10 4.18Member Services 4.07 4.32 4.27Deli/Café 4.03 4.22 4.29Checkout/Registers 4.72 4.28 4.36Customer service desk 4.35 4.37Product Demos and Samples 4.28 4.29Product Returns 4.54 4.56Product Special Orders 4.49 4.53Overall Service 4.30 4.29 4.35
Satisfaction
• Highest rating = 4.7 “Availability natural/organic”
• Lowest rating = 3.1 “Prices”
• Biggest Changes from 2010:– “Responsiveness to Feedback” +0.95– “Checkout/Registers” -0.3
Indicate the degree to which Hunger Mountain Co-op…
2011 2017 2018
helps to create a sense of community 4.2 4.2 4.1
promotes environmental stewardship 4.3 4.3 4.25
can be trusted to make ethical business decisions 4.2 4.2 4.2
has a positive influence on my health 4.3 4.35 4.3
promotes cooperatives as a business model 4.3 4.2is a valued source of information about food and health issues 4.1 4.0
supports the local food economy 4.45 4.45
is a responsible employer 4.2
Satisfaction
How likely are you to recommend Hunger Mountain Cooperative
to a friend or a colleague?
Average = 4.5 89% likely or highly likely
2018 Shopper Survey
To what extent does parking limit your access to the Co-op? 2018Never 54%Occasionally 41%Frequently 5%
What is your level of interest in the Co-op offering online ordering with in-store pickup? 2018Very interested 11.9%Potentially interested 35.9%Not interested 52.2%
2018 Shopper Survey- Give Change
2018 Shopper Survey- Prepared Foods
Business Plan Fiscal2019-2021
• Current Situation and Trends Report– Internal– External
• Current Plan Priorities
• New Priorities
Our Mission
Hunger Mountain Cooperative exists to create and sustain
a vibrant community of healthy individuals,
sustainable local food systems, and thriving cooperative commerce.
Membership Trends
4,875
8,609 9,050
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
20082009
20102011
20122013
20142015
20162017
2018 projected
Number of Co-op Member-Owners
2010-18 Sales Trends
12.9%
8.5%
6.1%
8.0%
6.3%
3.5%4.50%
0.60%
2.40%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD
Annu
al G
row
th R
ate
HMC Sales Growth FY2010-18(over previous year)
2018 So Far
Q1 Q2 Q3
Sales Growth 2.30% 4.70% 0.60%Customer Count Growth 0.70% 1.90% -0.50%
2018 So FarCategory Sales Trends through Q3• Supplements +12.6%• Prepared Foods +10.5%• Produce +5.75%• Frozen +5.2%
o Cheese -1.2%o Wine -2.3%o Bakery -3.3%
Local Product Sales (52 week basis)502 Vermont Vendors, 40% of Store Sales
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
2013 2014 2015 2016 2017
Sale
s
Fiscal Year
Electrical Usage
Renewable Electricity Generated: Approx. 2%
672,720 624,936
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
FY2013 FY2014 FY2015 FY2016 FY2017
Kilowatt-H
ours
Co-op In the Community
• 27,250 lbs. food rescue donations
Support for Co-ops
• Sales of products from other co-ops: $1.2 million, 4.9% of total sales
Employees 2017-18• 164 employees• Compensation• Dissatisfaction– Union-management– 22 grievances filed– Extended contract negotiations
• Safety- 37 claims• Green Team, Appreciative Inquiry Initiatives• 16% turnover, 9 year average tenure
External Trends
• State unemployment <3%• Natural/organic foods growth• Competition• Consolidation & Innovation
The Industry Life Cycle
Confidential and Proprietary Page 35
We’ve Been Here Before
0
500
1000
1500
2000
2500
3000
1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100
Old Wave Sales Volume
New Wave Sales Volume
Third Wave Sales Volume
Number of Old Wave Co-ops
Number of New Wave Co-ops
Number of Third Wave Co-ops
Our Focus For 2019-2021
• Business Success
• Employee Well-Being and Workplace Culture
• Member-Owner Participation and Community Relationships
2019-2021 PrioritiesCarry-Forward
• Promotions and Signage• Value-added Meat• Employee Suggestion program• Employee Handbook• Training and Development Program• Heating/Cooling System• Member Discounts• Focus on affordability and accessibility
2019-2021 PrioritiesAppreciative Inquiry Pathways
• Positivity, Appreciation and Service– volunteerism, meals, training in interpersonal, AI principles
• Value-Added Communication– suggestion program, communication tree
• Ongoing Opportunity <> Continuous Improvement
• Employee Well-being – Wellness incentive programs, workspace
2019-2021 Priorities New
• Bakery section reset• Facilities: – refrigeration units– dish pit, parking lot, roof
• Communications plan• Planning for next labor contract • Business continuity planning
2019-2021 Priorities Possible
• Additional AI training • Special orders/Develop online ordering• Mini truckload sales• B Corps certification• Renewable energy plan• Explore warehouse space
Co-op Priorities
Clarifying Questions?
Co-op PrioritiesWhat do you think the Co-op’s priorities should be over the coming 3-5 years? Why?
What else should the Co-op do to improve/advance our:• Business Success • Employee Well-Being and Workplace Culture• Member-Owner Participation and Community
Relationships
Next Steps
• May 31: Draft Plan Due• June 25: Presentation to Council • Week of July 9: Staff Presentations• Mid July: e-News summary
Thank You!
Next: Council Roundtable
2018 Council Plan
• Staff-Management Relations• Council-Member Communications• Bylaws• Vision Committee• Finance– Investment policy– Early Debt Retirement