London Drugs offers shelf space to boost local products hurt by pandemic

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This article was published 29/04/2020 (2352 days ago), so information in it may no longer be current.

London Drugs is being applauded by Winnipeg business organizations for its decision to offer shelf space to local products during the coronavirus pandemic.

The retailer, which has stores throughout Western Canada, announced Wednesday it was accepting applications from small, local business owners whose operations have been affected by public-health orders. Selected products will be featured in dedicated aisles dubbed “Local Central.”

Robert Felix, the company’s senior vice-president of merchandising, says London Drugs has previously offered local items such as honey, flowers and corn at stores in British Columbia and Alberta and has had success selling cookies for Girl Guides of Canada during the pandemic.

“People want to support their local charities… and they want to support their local businesses,” Felix said. “We just see it as an opportunity to add value, not only in the community, but also to our customers, as well.”

Within hours of announcing the program, the Canadian-owned company had received more than 400 applications and inquiries from business owners. The size of the London Drugs store will determine how many local products it can shelve and Felix says Winnipeg’s St. Vital location will offer ample opportunities.

“We’ll have a better idea in the next day or two in terms of how many people we’re going to be able to help based on what sort of products are coming forward,” he said.

Local applicants must have a valid Canadian business licence or permit and be based in Manitoba. The products must be items that don’t require freezing or refrigeration, and alcohol, cannabis or tobacco products won’t be considered.

Businesses will not be charged a shelving fee unless London Drugs needs to purchase specialized display fixtures, at which point Felix says cost-sharing would be discussed.

Dayna Spiring, president and chief executive officer of Economic Development Winnipeg, sees the program as a good opportunity for small businesses to get noticed by a major retailer.

“It will help with the lack of traffic that these small businesses are getting, but it’s also going to shine a spotlight on some of these products,” Spiring said. “It’s very difficult for small businesses to get the attention of larger chains and that’s simply a numbers game.”

Loren Remillard, president and chief executive officer of the Winnipeg Chamber of Commerce, says the initiative is a significant gesture in the highly competitive retail sector.

“We applaud the move,” Remillard said. “It shows how business is actually coming together to support one another and lift each other up to get to that recovery phase.”

One of the biggest challenges facing small business owners in Winnipeg is not having enough cash flow to cover overhead.

While many consumers have been supporting local businesses during the pandemic, Remillard hopes the sentiment remains — for customers, government and the private sector — when relative normalcy returns.

“The focus now needs to be how do we take that sentiment… and transform it into something that has legs for the long term?” he said.

eva.wasney@freepress.mb.ca

Twitter: @evawasney