planning our future - hunger mountain co-op€¦ · business plan fiscal2019-2021 • current...

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