Giant Tiger CEO Retires

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As the CEO of Giant Tiger Stores Ltd. seeks to position the discount store as the go-to for price-sensitive shoppers amid the worst inflation crisis since the early 1980s, I left the company this week.

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Director Gino DiGioacchino has been appointed interim CEO.

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“We thank Mr. Wood for his efforts and wish him well in the future,” said Allison Scarlett, head of communications, in an email.

Wood took over as CEO of the Ottawa-based company in September 2020, according to a LinkedIn profile. He helped steer the company through the woes of the pandemic era, including stalled supply chains and price hikes to business his inputs.

Wood’s resignation seemed sudden to outsiders. A week before that, in what would be his final interview as CEO, he toured one of the company’s stores in Brampton, Ontario, a suburb of Toronto.

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If Wood knew he was leaving the company soon, he would walk down the aisle and browse a collection of clothing, Christmas items, and $10 skeins of yarn that other retailers typically sell for $12 or more. I pointed out the increase and did not allow it.

As it passes through nearly every item, Wood operates more than 260 stores between Alberta and Prince Edward Island, mostly in Ontario and Quebec. reiterated the belief that the U.S. is in the best place to help withstand very high inflation. to keep costs as low as possible.

“It’s in our DNA,” said Wood. “We keep our cost base low. If we keep our costs low, we will not face pressure to push prices up.”

Scarlett said the company’s strategy remains unchanged.

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impact of inflation

High inflation seems to be affecting Canadians’ wallets. According to one recent report, visits to food banks hit a record high in March this year as costs soared on nearly everything. and Canadians are spending 11% more on groceries in September than they did a year ago. This is higher than the overall inflation rate of 6.9% and the fastest acceleration since August 1981.

In response to shoppers’ search for discounts and lower prices, Giant Tiger has stepped up its fresh produce offerings this year. But rising fuel and commodity prices, bad weather and the war in Ukraine are pushing up prices at checkout, making it harder to live up to Giant Tiger’s ‘savings to put a smile on your face’ slogan.

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“I think inflation is inevitable, but what we’ve always tried to do is offer the lowest prices the market can offer,” said Mr. Wood of the 62-year-old company. “Positioning, drive and focus haven’t changed at all. In fact, we’re more careful than ever.”

Giant Tiger started in 1961 as a single store in Ottawa’s Byward Market. Founder Gordon Reed opened his discount store in Australia with fond memories of his mother’s work at his market, Woolworths. in 2011.

Today, the store sells a wide variety of goods, including upholstery and small furniture, clothing, toys, pet supplies, and food, and promises to offer the lowest prices on the market. A 4-cup Pyrex measuring cup sells for $7.97 on Giant Tiger’s website, while the same cup sells for $16 online at Walmart Canada.

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keep costs low

According to Wood, one of the main reasons Giant Tiger is able to keep costs low is because it has a dedicated trucking fleet that handles product delivery to all of its stores nationwide.

The company’s trucking strategy sets it apart from many other retailers who have been forced to pay profitable fees to third-party shipping companies to get their goods to brick-and-mortar stores. For example, these charges, which burden the operating costs of the grocery industry, are either absorbed or passed on to consumers.

“We have our own trucking group, Tiger Trucking, which delivers products to our stores nationwide every day. Their fleet has been a key factor in helping us keep our costs low,” says 150 Trucks. said Wood of 700 Containers. Navy.

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Giant Tiger has further refined its savings strategy during the pandemic. According to Wood, supply chain disruptions have proven beneficial in the current high-inflation environment, acting as an exercise to make operations more “nimble.” , was to allow purchasing managers the freedom to pivot to another brand if a particular item was not available. This is still done today.

Additionally, the company avoids building up inventory and instead “tightly” controls the amount of items it keeps on hand. There’s also room for purchasing managers to trade merchandise weekly, if not daily, Wood said.

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This policy also keeps the warehouse small, so you don’t have to pay for expensive large store space. By keeping spare store designs, such as choosing simple lighting fixtures, Giant Tiger can further reduce costs and pass the savings on to its customers.

Maintaining frugality is key to navigating a challenging macroeconomic environment that can stifle growth, Wood said. To that end, Giant Tiger has cut back on physical flyers this year and cut back on paper advertising in favor of digital alternatives. The retailer also encourages employees at all levels of the company to strive to keep sticker prices low. If you keep it, you can figure out the best way to do what you need for the lowest possible cost,” said Wood.

Although Wood is no longer CEO, Scarlett said the company will maintain its low-cost vision. “Giant Tiger’s focus is to provide Canadians with the products and groceries they need every day at the lowest possible prices. We are proud to serve the 264 communities we call home, We look forward to expanding further in the future,” she said.

• Email: bbharti@postmedia.com | Twitter: Bianca Balti