LAUGFS Super Nugegoda is all about overall customer experience, says CEO

‘Getting best deals is very important in satisfying valued shoppers’

by Sanath Nanayakkare

The full range of expectations of a customer vising a supermarket can be vast in this day and age. Identifying just how expansive they can be and the numerous ways in which a supermarket can try to exceed customer expectations is therefore very critical. Whether one likes it or not, these expectations tend to involve a comparison when implicit expectations are not being met. The Island recently had an interview with Pravin R. David, CEO of LAUGFS Supermarkets where we probed one of the leading supermarket CEO minds in the country about this particular challenge. Notably, the interview was conducted on the sidelines of an event where LAUGFS recently opened its brand-new outlet located at 225, Stanley Thilakarathne Mawatha, Nugegoda. Pravin said it marked the 38th addition to the chain, but is different from other LAUGFS outlets and other competitive retail formats as well. The following are some excerpts from the interview.

Q. Supermarkets already battle it out on prices for products that matter most to customers. How does LAUGFS Supermarkets work with its supply chain to bring its grocery prices down?

As a consumer centric business organization, LAUGFS Supermarkets touch thousands of customer lives on a daily basis, so as a company, we are very concerned about the prices we offer to our customers on daily essentials and groceries. Adapting a competitive pricing policy via effective supply chain strategies is vital for maintaining competitive prices. Most importantly it’s a challenge to maintain a competitive pricing in an environment where prices are frequently fluctuating.

Q. Sri Lanka is now at a point where the spikes in essential commodities are reversing, perhaps allowing your margins to drift higher from an all-time low. Is this a welcome development for supermarkets from a balance-sheet point of view?

Prices of essential items are fluctuating and both cost and selling prices are adjusted accordingly. So there won’t be a drastic increase in profitability, but compared to the previous period it is a stable condition as there aren’t many supply issues which is directly impacting on price and availability. But overall, certain cost elements of the business operations such as taxes, power and utility, interest cost have gone up drastically which has a direct impact on the profitability.

Q. Competition largely depends on how many supermarkets are present in any local area. Nugegoda is a place where you would face fierce competition. Why did you really want to enter this battleground?

There are a few reasons why we entered a highly competitive area like Nugegoda. This new store format is totally different to all our existing LAUGFS Super outlets and other competitive retail formats too. So we wanted to bring this new concept to an area with many residential customers in line with our target-group.

Q. What’s the specialty of your bakery products and ready meals at your Nugegoda store?

We have first launched our hot kitchen + Bakery concept of “Sugar & Spice” by Crimson Bakery at Nugegoda store. This caters to a diverse range of ready- made hot food and savories/ snacks and there are seating facilities to relax and enjoy your food while shopping with your family. We maintain high standards of quality and hygiene as it is our primary promise.

Q. How tough is your job as CEO in getting the best deals for shoppers including the quality of service?

Getting best deals is very important in satisfying our valued shoppers and to offer the best prices in daily essentials, fresh items and other grocery items. It is mandatory to maintain a better relationship with suppliers and our farmer networks are key in managing this proposition. Whereas, maintaining service levels requires continuous training and development of our front line staff, retaining them, upgrading their attitudes and soft skills are the main challenges ahead.