Case 01
Removing conditions from an essentials basket
In early 2022, our member feedback included repeated frustration about grocery offers that required larger purchases or careful timing. The commercial team could point to attractive advertised prices, but store colleagues were spending time explaining conditions. I asked for a twelve-store trial covering thirty-six frequently purchased essentials, with a simpler price presentation and fewer promotional changes over six months. We selected products with sufficient supply continuity to make availability a serious part of the test.
The buying team opposed removing mechanics that attracted supplier support. Finance also asked whether we were transferring an unmeasured benefit to customers while accepting a measurable reduction in income. Those were legitimate objections. I approved the trial with a C$420,000 reduction in supplier promotion funding explicitly included in the comparison. We did not assume that additional sales would replace it, and we retained ordinary quality and purchasing controls.
Across the defined basket and stores, unit sales rose 6.2% against the preceding comparable period. On-shelf availability improved from 94.1% to 96.3% in the sampled checks. Neither number established causation: buying patterns and supply conditions also changed during the period. The result did show that the operational team could sustain the simpler offer without the availability deterioration some colleagues had expected. The lost funding remained a cost of the choice.
We continued the basket in those stores while reviewing product selection before any broader adoption. I rejected a proposed announcement describing the trial as a complete solution to affordability. Thirty-six items cannot stand for a household's whole food budget. The useful outcome was narrower: a price promise customers could understand, with its commercial cost and its availability measured together. Store managers also reported fewer explanations about the selected offers, but we had not measured that consistently enough to publish a quantified saving.
I would involve store colleagues in defining the basket before announcing a price promise, especially where pack sizes or substitutions could make an apparently clear commitment difficult to honour.