Economic Outlook

Big Y’s Charlie D’Amour Reflects on 2020 — and the Year to Come

Retail

Editor’s Note: Retail was among the sectors most impacted by the pandemic. Some businesses were forced to close, while all others had to make sweeping changes to how they did things to keep customers and employees safe. BusinessWest asked Charlie D’Amour, president of CEO of Big Y, to put 2020 in perspective and look ahead to what might come next.

 

BusinessWest: 2020 was certainly a tumultuous year for retail — and business in general. No one has a crystal ball, but what do you project for the year ahead, in terms of the economy and Big Y?

 

D’Amour: 2020 has certainly been fraught with challenges. Keeping our employees and customers safe while providing essential services has been foremost in our efforts. One of the biggest challenges has been supply chain, and that has been compounded in a number of ways.

First, panic buying ensued, and safety stock that is usually kept in reserve evaporated overnight. Many manufacturers and food suppliers facing their own COVID challenges, from staffing to supply, have not been able to keep up. Distribution centers have also felt these impacts, along with transportation, etc. Going forward, I do not expect that these areas will see a complete return to normal operation until late into 2021 or even into 2022. The recent uptick in COVID cases has put a lot of pressure on transportation and distribution. I anticipate that once we get through the holidays and the winter months, things will slowly improve.

Staffing continues to be an area of focus for us, and we are actively hiring. Currently, we have more than 1,000 open positions. We’ve adapted our training protocols to keep everyone safe yet provide adequate training.

Though I’m optimistic about the economy starting to bounce back in 2021, it is clear that government help will be needed, especially for those who have lost their jobs and for businesses that are struggling. There may be some longer-term systemic changes to the economy that could continue to linger. From my conversations with other supermarket operators both in China and in Europe, it seems that people are still reluctant to venture into inside venues. This has had an ongoing impact on restaurants, gyms, movie theaters, travel and hospitality, etc. As the vaccine takes hold, I believe that this will improve and folks will begin to travel again, and ‘experiences’ will become foremost in returning to some normalcy.

Charlie d’Amour

Charlie d’Amour

“Staffing continues to be an area of focus for us, and we are actively hiring. Currently, we have more than 1,000 open positions.”

How and where people work, I think, will be forever changed. Even in our own offices, more and more folks are working remotely. We are communicating more with video and virtual meetings. We continue to adapt and adjust. And, though I think the supermarket will continue to be the primary way people get their food and groceries, the growth of online shopping is here to stay. In 2021, we are excited to be opening our first micro-fulfillment center, which was planned and begun before the pandemic hit but which we believe will have an ever-increasing role in the way people shop in the future.

 

BusinessWest: Big Y has been on a path of steady expansion over the past several years. Will this pattern continue in 2021, and how and where will this growth take place?

 

D’Amour: We have been pleased that, despite the pandemic, we’ve actually had an exciting year of growth. We have opened two new gas and convenience stores, a new supermarket, completed our new Fresh & Local Distribution Center, and remodeled over 16 supermarkets. We’ve accomplished a lot. We have two new supermarkets planned for next year, several new gas and convenience stores, and, as I mentioned, the opening of our online ordering and micro-fulfillment center in Chicopee.

 

BusinessWest: Over the course of the past several months, we have seen a number of changes when it comes to how work is done and where. How has Big Y responded to these shifts, and will some of them be permanent?

 

D’Amour: Obviously, in our supermarkets, distribution centers, gas and convenience stores, and at Table & Vine, a physical presence is required. We very quickly realized in our physical locations that we needed to keep our employees safe, and to that end, we jumped on making sure that the appropriate cleaning procedures were in place and that PPE was available. We were one of the first retailers to install plexiglass shields at our registers, among many many other things. We have made sure to accommodate not only our frontline workers, but everyone with flexible schedules, leaves of absence if required, and continuing to pay employees who had to quarantine or care for a loved one.

We have continued to provide our employees with ‘thank-you’ pay, first as an hourly bump and now through a monthly bonus which will continue into the first part of 2021. We have also provided a holiday bonus to all full-time, part-time, and casual employees to reward and thank them for rising to the challenges we have all faced with this pandemic.

In our offices, we have definitely moved from a company that favored in-person meetings and collaboration to embracing new technologies and remote working. Here, again, flexible schedules and accommodating employees with childcare issues, etc. has been our focus and will likely continue. One area that has been accelerated because of the virus has been our use of virtual meetings and video communications. As our geographic territory has spread, bringing our store folks to our Store Support Center has presented more and more of a challenge. As a result of the virus, we have been forced to explore more avenues to connect, which have, for the most part, been effective and well-received by our employees.

 

BusinessWest: As the leader of a major corporation, can you talk about the ways this pandemic has impacted your ability to plan long-term, or if it has?

 

D’Amour: The supermarket business is very dynamic, and, as such, we are always in a state of change and flux. We are also in a business where our customers give us almost instant feedback to what’s new and changing. Our leadership team gets together every year to focus on our strategies and how we are adapting and evolving as our customers are adapting and evolving. As such, we are maintaining our current course of action, and our long-term plans and strategic initiatives have not changed. Every year, there are minor course corrections and adjustments, but our overall direction is the same, and that has not changed because of the pandemic.

 

BusinessWest: Speaking of leadership, talk about your experiences leading a company through these most challenging of times.

 

D’Amour: For me, first and foremost was the importance of communication. Being present, being authentic, and regularly communicating with our employees, customers, and other stakeholders was especially important early on when things were changing rapidly and coming at us a mile a minute. While I couldn’t get out to our stores as frequently as I usually like to, being able to find other ways to connect with our stores was essential.

Our employees especially were appreciative that we were visible, even virtually, and that we were genuinely concerned. Though we did shut down our offices for all but the most essential employees, I tried to be in our offices as much as possible to show a physical presence and to connect with our leadership team and others that were in the building. I believe that all of these things helped to inspire confidence within our organization. We tried to push decisions down to the lowest level and trusted in our employees and our teams. We established a crisis management committee, now dubbed the pandemic response committee. As such, we were able to quickly and effectively respond to a very fast-paced and changing dynamic.

Another area that underscored a point of focus for us this past year was in regard to redoubling our efforts regarding diversity and inclusion in our company. While we have made progress over the years, it was clear that we needed to do more. To that end, we have refocused and engaged our efforts, developed a new employee-resource group called “Y You Belong,” and created a steering committee of senior leaders and outside advisors from the community. We also conducted a half-day seminar for our leadership team with the Healing Racism Institute of Pioneer Valley to better understand our role in healing racism in our company and our community.

Throughout this past year, the role of leadership was and continues to be an important linchpin in our ability to deal with the challenges of this pandemic.

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