The Co-operative Group is about to embark on a massive investment programme intended to introduce a step change in customer service across its estate of 1,800 stores.
Keith Brydon, general manager retail programme management, would not give a precise figure for the level of investment but said it would run into “tens of millions of pounds over the next three years”.
Plans for the Store First programme have been
developing since CWS merged with CRS to create Co-operative Group in 2000, increasing the estate from 450 to 1,100 stores, said Brydon.
The project was given impetus by the acquisition during the last year of about 700 much smaller stores from Alldays and Balfour.
He said: “With much smaller stores there is the same level of work but fewer staff. The way we used to run stores was no longer appropriate. We decided we needed major changes to allow staff more time to concentrate on customer service.”
A work study identified “hundreds” of non value-adding tasks, said Brydon, and a decision was taken to eliminate, automate or outsource all unnecessary work.
Examples, he said, were centralising the sales-based ordering system to reduce the amount of management and staff time spent on ordering in store, and automating temperature checks on chillers using a radio frequency system communicating with a back office PC, rather than filling out reports by hand. This would then free up staff for tasks such as working at checkouts to reduce queues or replenishing shelves.
Three software suppliers, SAP, Retec and JDA, are finalising their proposals to meet the Co-op’s requirements and an in-house team are looking at an “evolutionary” development of existing systems. In January, IBM will advise on the choice of system and Deloitte will carry out an evaluation of the business case. The Co-op is also looking for a delivery partner.
Brydon said the project would take three to five years, but could have implications for the next 15-20 years.
The Co-operative Group has begun installing the EPoS and back office system it acquired with Alldays. Brydon described the system as “a nugget of gold” discovered when the society evaluated Alldays’ systems. It is chip and pin enabled and will be installed across the entire estate by the end of next year.
John Wood

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