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North West expands products, services

Stephanie McDonald
Northern News Services
Monday, March 26, 2007

NWT/Nunavut - Shoppers at NorthMart and Northern stores can expect to see some changes in the near future.

Parent firm, the North West Company, will open a new Northern in Tsiigehtchic in mid-April. Renovations on an existing building are underway.

NNSL Photo/Graphic

NorthMart and Northern stores, like this one in Rankin Inlet, have increased the variety in their produce sections. Food sales have been the company's largest area of growth over the past year in the North. - photo courtesy of the North West Company

Also this year there will be renovations and additions to outlets in Cape Dorset, Iglulik and Kugluktuk.

"Given the population, the good business and good relationships we have with the communities, the stores are a little undersized," said Michael McMullen, executive vice-president of the Northern Canada retail division.

Customers in these locations can expect to see an increased selection of groceries, home furnishings, media products and general merchandise.

"It's a safe bet to say that there will be some incremental employment increases," said McMullen.

In the past year, Northern stores have been testing what the company calls an advanced order system.

"The local store manager has the ability to select the product they would like brought into their communities," McMullen said.

"It is a customer-led and store-driven process."

Some stores have fully implemented the system, while others are just beginning. The first two orders that came in on it actually doubled in size.

Recognizing its customers are often under-serviced in terms of pharmaceutical products and over the counter drugs, North West is starting to add pharmacies into existing Northern stores.

"The unique aspect and the challenging one is the shortage of pharmacists and how we staff these pharmacies, which are in more remote locations," said Edward Kennedy, president and chief executive officer.

The solution is have the operation run through a pharmacist in the central Winnipeg hub.

Implementing these services in the North has taken longer than expected due to regulatory challenges in the territories.

There is no College of Physicians in the North, and therefore professional licensing does not exist, Kennedy said.

North West enjoyed a 2006 sales increase of 11.2 per cent over 2005 levels to $944.9 million.

For the NWT and Nunavut, the biggest growth area was in food sales.

Value-added, ready-to-serve products, such as bags of mixed fruit and vegetables, have been popular new items in the coolers.

"Customers can have a variety of tastes and products," McMullen said.

A similar system has been used for fresh meat - it's pre-cut and ready to be used in stir-fries and stews.

Delis are now serving hot meals and Chinese food combinations while bakeries are selling more whole wheat products. The new choices are healthy and individualized, McMullen said.

Expansion plans for the firm go well beyond 2007.

"We have a pretty aggressive strategy for the next three to four years. Primarily store additions and renovations," he said.

"Money will be put into buying new equipment and new fixtures in order to deliver the product in a more customer friendly way."