LES PILIERS DE L’AVENIR

SURPRISE CASE

ENGLISH VERSION

MÉTRO

Written by :

Dominic Chaîné, M.B.A. Analyst, real estate Management

Administration, Real estate investments Industrielle Alliance, Insurance and financial services inc.

And Maude Rhéaume, B.A.A.

Responsable de La Ruche Québec

In collaboration with : Lucy Rodrigues, CRHA, M.SC

Chef de section, acquisition et gestion de talents

Métro

Case study, surprise case, 2016 Business Games

Presented by Metro.

Employee recognition: a top priority at Super C…

Introduction

The latest Détail Québec organism’s report on the retail trade workforce shows a turnover

rate of 25%. The rate is higher for sales and customer service personnel (37%) and part-

time workers (44%)1. Obviously, the retail trade’s turnover rate is largely due to the

hiring of great numbers of students and part-time employees2. This industry-wide

problem is of great concern to its leaders. A few weeks ago, the Vice President and

General Manager of Super C, Jean-Guy Tremblay, asked himself the following question:

how could Super C’s employee recognition program be improved to foster employee

engagement and retention while keeping it economical and easy to manage while staying

in line with Super C’s brand image (Super C: nice, good, inexpensive)?

Metro’s history of strong growth

With annual sales of over $11 billion and over 65,000 employees, Metro is a food and

pharmaceutical distribution leader in Quebec and Ontario, operating a network of 588

food stores under several banners including Metro, Metro Plus, Super C, Food Basics,

Adonis and Première Moisson, as well as 268 drugstores under the Brunet, The Pharmacy

and Drug Basics banners3. These past years, Metro has experienced well-structured

growth in a fiercely competitive industry. As Mr. Pierre H. Lessard, Chairman of the

Board, stated in the 2014 Annual Report: “The food distribution industry continues to be

very competitive. The management team was however able to adapt to the challenges by

reviewing its merchandising programs and by focusing its actions on customer

satisfaction and tight cost control.”4

The business strategy of Metro and its banners places the customer at the heart of all

decisions. The growing needs and expectations of consumers with regards to corporate

responsibility confirm the relevance of Metro’s approach and the various resulting

initiatives.

The work of each and every employee must be driven by the company’s mission, vision

and values.

1 Comité sectoriel de main d’œuvre au commerce de détail, DIAGNOSTIC SECTORIEL DE LA MAIN-D’ŒUVRE DU COMMERCE DE DÉTAIL AU QUÉBEC 2012-2015, p.18 2 Ibid. p.18 3 Metro 2014 Annual Report, p.1 4 Metro 2014 Annual Report, p.4

Our Mission - Super C is committed to offering savings-conscious families the lowest

priced groceries in a clean and pleasant environment each and every day!

Our Vision: To become the discount grocer with the best fresh products. Listening

to its customers, Super C stands out for its courteous and efficient staff and is

known for its low prices.

CUSTOMER FOCUS: To place customers at the heart of our priorities and provide

the standards of quality, cleanliness and courtesy they expect. To stay on top of

trends and to adapt to customers’ changing needs.

RESPECT: To treat customers, employees, colleagues, superiors, suppliers and

other outside people with respect. Respect goods, equipment and the environment.

To comply with laws and standards.

COMMITMENT: To participate in meeting or exceeding objectives. To foster

mustual assistance and collaboration. To work with pride and perseverance. To

promote the banner and to show a sense of belonging.

EFFICIENCY: To foster teamwork, knowledge sharing, skill development and to

process improvement for quality work at a lower cost.

ACCOUNTABILITY: To own one’s responsibilities and decisions with their

consequences. To meet deadlines, obligations and commitments. To value initiative

and autonomy.

The beginning

A few independent grocery retailers decided to form a purchasing group. Following this

association, nine years later in 1956, the “groupe des épiciers Metro” is founded. The new

sign appears out front. Twenty-five years after it was founded, the company becomes les

Marchés d'Aliments Metro ltée. The first stores offering the supermarket concept are created.

Several events follow:

- 1986: The company is listed on the Montreal Stock Exchange

- 1986: Acquisition of McMahon Distributeur Pharmaceutique Inc.

- 1987: Acquisition of La Ferme Carnaval inc.

- 1992: Acquisition of the leases and rights to 48 Steinberg grocery stores.

- 1999: Metro enters the Ontario market with its acquisition of the Loeb.

- 2005: Metro purchases all the shares of The Great Atlantic & Pacific Company of

Canada (A&P Canada) for $1.7 billion.

- 2011: Metro announced that it had entered into a partnership agreement with Marché

Adonis.

- 2014: Partnership agreement with Première Moisson bakery. The founding Colpron-

Fiset family will retain 25% of Première Moisson's capital.

Over the past 24 years:

Sales rose from $2.2 billion to $11.6 billion;

Retail square footage went from 5,100,000 to 20,100,000;

From a loss of $9 million, net earnings rose to $456.2 million;

Market capitalization grew from $55 million to $7.5 billion;

Net earnings per share went from a loss of $0.16 to net earnings of $5.13 per

share;

And the share price climbed from $0.74 to $90.80 on December 1st, 2014.

All this has made Metro, with its 8 food banners – Metro and Metro Plus, Super C,

Marché Richelieu, Les 5 saisons, Marché Ami, Marché Extra, Service, Servi Express,

Dépanneur Gem and Food Basics – one of the largest companies in Canada. As Mr. Eric

R. La Flèche, President and Chief Executive Officer, stated in the 2014 Annual Report:

"Our success rests on the strength of our team. Developing talent is at the heart of our

action. We will therefore continue to develop strong talent pools that reflect our

customers’ diversity and that will be ready for tomorrow’s competitive challenges."5

Metro considers its employees as its most important resource. In view of this, the loyalty

and dedication they have shown over the years should be highlighted in a public and

tangible way. The company wants to develop and maintain a strong sense of belonging

and promote retention of its staff.

5 Metro 2014 Annual Report, p.5

The history of Super C

La Ferme Carnaval inc. was created in 1983 with the first Super Carnival stores

appearing in the Québec City area. In 1987, Metro-Richelieu Inc. acquired La Ferme

Carnaval inc. and its 12 Super Carnaval outlets, which were renamed Super C four years

later, with Super C becoming a discount food store to meet customer needs.

In 1992, Metro-Richelieu Inc. acquired several Steinberg grocery stores and turned 12 into

Super Cs.

Since 1996, Super C has continued to increase its number of stores, building new ones in

strategic locations to expand its customer base.

Today, with 89 stores averaging approximately 43,000 square feet, Super C has a

foothold in all major urban centers in Québec and offers a wide selection of products,

many family-sized, all at discount prices.

Super C has annual sales of over two billion dollars and provides employment to 6,000

people.

The Québec food store industry

The supermarket concept as we know it today with its basic departments (grocery,

produce, meats, dairy and non-food) emerged in the 1960s (Couture et al., 2007) 6

. We’re

talking about conventional stores like Metro, IGA and Provigo.

Nowadays however, “outside” retailers are crowding into the food retail industry.

These outsiders are mainly warehouse stores (e.g. Costco), large stores (e.g. Wal-

Mart), discount stores (Super C, Maxi), pharmacies (e.g. Jean-Coutu, Shoppers Drug

Mart), one-price stores (e.g. Dollarama) and specialty stores associated with certain

ethnic communities (e.g. Marché Adonis).

Each market uses different strategies to enter the market. Conventional markets are

betting on the diversity of the products they offer and of their customer

service. Discount markets are betting on a pricing strategy. Mass markets are

betting on the concept of where you can find everything in one place whereas

warehouse stores rely on large formats. Super C distinguishes itself mainly by a

price strategy focused on efficiency and simplicity of operations. It’s simple and

effective

6 COUTURE, Guillaume, Félicien HITAYEZU and Berchmans NTIBASHOBOYE (2007). « La dynamique de la distribution alimentaire,

d’hier à aujourd’hui – Une meilleure compréhension de l’évolution de la distribution alimentaire au Québec et de la place des acteurs actuels », BioClips+, vol. 10, no 2, 20 p.

In March 2014, a HEC Montréal study depicting the food store industry in Quebec, stated

that the market for food sales has been mature for a good number of years. Indeed, the

sector's growth, like that of the population is weak, but still sustainable. If the sector

shows some slight growth, it is probably because new consumer demands and

expectations offer many opportunities for developing value-added products and new

markets (e.g. fine products such as cheeses and cold cuts) (Petit, Morissette & Bourhis,

2014) 7

. It is important to understand that in 2010, three major retailers (Loblaws-

Provigo, Sobeys-IGA and Metro) accounted for 68.4% of the Québec grocery market,

(CSMOCA, 2011) 8

, which is still the case today.

Supermarket size tends to evolve to expand the various departments’ product offerings

and offer grocery-related products and services, such as dry cleaning, photo finishing and

pharmacy (Ménard et al. 2009)9. It is also important to note that Metro is the only

Québec-controlled grocery while Sobeys and Loblaws are respectively Nova Scotian and

Ontario companies, and Wal-Mart and Target are American-owned10

.

With respect to the workforce in this industry, it is distributed over more than fifteen

positions that can be manual or related to sales and service, administration and

management or skilled trades (CSMOCA, 2007)11

. Sales and service represent the largest

group with 78% of jobs, followed by management occupations with 13% (AGÉCO

Group, 2006)12

. As for the level of education of personnel, it is not very high, although

some positions require management skills. Department managers and assistants-managers

often lack adequate training (AGÉCO Group, 2006)13

. In fact, a quarter of the workers

(26%) have not completed high school, 22% have a high school diploma, 15% have

completed some postsecondary education, 28% have a postsecondary diploma, and

finally, 9% have a university degree (AGÉCO Group, 2006)14

.

7 Petit, M.P., Bourhis, A. and Morissette L. (2014). Portrait du secteur des magasins d’alimentation au Québec, Montréal, Revue internationale de cas gestion, vol.2, num.1, p.2 8 COMITÉ SECTORIEL DE MAIN-D’ŒUVRE DU COMMERCE DE L’ALIMENTATION (CSMOCA) (2011). Diagnostic sectoriel de la main-d’œuvre dans le commerce de l’alimentation au Québec, Montréal, Comité sectoriel de main-d’œuvre du commerce de l’alimentation, 32 p. 9 MÉNARD, Louis, Ella DIEUDONNÉ, Dimitri FRAEYS DE VEUBEKE, Hélène ROCHON, Mélanie ROBITAILLE, Michel ZINS, Renée DUBÉ et Catherine GOBEIL (2009). Étude de la dynamique et des tendances des marchés au sein du secteur agroalimentaire québécois, Québec, ministère de l’Agriculture, des Pêcheries et de l’Alimentation du Québec, 106 p. 10 Petit, M.P., Bourhis, A. and Morissette L. (2014). Portrait du secteur des magasins d’alimentation au Québec, Montréal, Revue internationale de cas gestion, vol.2, num.1, p.2 11 COMITÉ SECTORIEL DE MAIN-D’ŒUVRE DU COMMERCE DE L’ALIMENTATION (CSMOCA) (2007). Rapport de planification stratégique, Montréal, Comité sectoriel de main-d’œuvre du commerce de l’alimentation, 30 p. 12 GROUPE AGÉCO (2006). Entre la nostalgie Steinberg et la Génération Y, un commerce de l’alimentation en quête d’identité : Analyse du marché de l’emploi et des besoins en matière de main-d’œuvre dans le commerce de l’alimentation du Québec, 2006, Montréal, Comité sectoriel de main-d’œuvre du commerce de l’alimentation, 100 p. 13 Ibid. 14 Ibid.

Recognition practices consist mainly of premiums (e.g. night shift, supervisory, Sunday

work) and bonuses15

. Some businesses are doing more and have implemented other

measures, such as social activities, gifts, encouragement and feedback, however, it seems

we should be able to do better in recognition (Petit, 2009)16

especially for Generation Y

workers (Petit and Arsenault-Pelletier, 2009)17

. Salary would be the top retention factor

for Generation Y workers (Petit and Arsenault-Pelletier, 2009)18

. While flexible work

schedules are the second-ranked retention factor for young workers. Challenging work,

nearness of the workplace, quality of relations with colleagues and competitive benefits

(Petit and Arsenault-Pelletier, 2009)19

are also retention factors.

In summary, the Quebec grocery sector presents management with multitudinous

challenges, both in terms of costs and in terms of workforce.

15 Petit, M.P.,Bourhis, A. and Morissette L. (2014). Portrait du secteur des magasins d’alimentation au Québec, Montréal, Revue internationale de cas gestion, vol.2, num.1, p.11 16 PETIT, Mélanie (2009). Les pratiques d’attraction et de rétention de la génération Y dans le secteur du commerce de l’alimentation, Rapport no 2, Montréal, HEC Montréal 17 PETIT, Marie-Pier et Fanny ARSENAULT-PELLETIER (2009). Enquête sur la génération Y, Rapport no 3, Montréal, HEC Montréal, p.57. 18 PETIT, Marie-Pier et Fanny ARSENAULT-PELLETIER (2009). Enquête sur la génération Y, Rapport no 3, Montréal, HEC Montréal, p.57. 19 PETIT, Marie-Pier et Fanny ARSENAULT-PELLETIER (2009). Enquête sur la génération Y, Rapport no 3, Montréal, HEC Montréal, p.57

Super C discount division

The Super C banner operates several Marché and Dépôt concept discount stores in

Québec. Consumers have access to a wide variety of fresh foods and grocery products at

very competitive prices. In 1993, there were 18 Super C. Now in 2015, there are 89 with

a 90th opening in 2016.

Day after day, Super C does not content itself simply by working on the products’

offerings; Super C has come up with five Customer Promises. They consist of the

commitment of our employees towards our customers (see annex). In addition to

working on the prices, Super C has decided not to compromise. ZERO COMPROMISE

is Always Fresh, Always in Stock, Always Great Prices.

Super C also distinguishes itself by its price program:

- Price advantage: Low prices everyday

- Reduced prices: prices reduced for a limited time

- Flyer price: this week only

The last (2014) Metro Annual Report had encouraging words for its Super C discount

division: "Super C continued to make good progress and opened its 86th

store in Gaspé.

We are very proud of this network of modern stores that presents a consistent image

throughout the province of Québec. The Super C stores set themselves apart in the food

industry as a result of their Marché and Dépôt concept. Great focus continues to be

placed on the freshness of our produces and on meat cut in store."20

In recent years, Super C has experienced one of the fastest growths in Québec. In 2000,

Super C crossed the 1 billion turnover with over 50 stores. In the last 7 years, Super C

opened 35 new stores and either renovated or expanded over 45. This shows a banner

that has wind in its sails. This strong growth brings great challenges in the personnel

20

Metro 2014 Annual Report, p.7

department; many new employees must be hired in all the stores and retained despite the

salary being very close to minimum wage for these entry position jobs.

Super C workforce

In 2015, the Super C banner had 2,300 regular employees and 3,600 part-time employees,

mostly students. Most Super C employees are unionized, except for management

positions. So there are three groups of employees: management employees, full-time

employees and part-time floor staff. (See job descriptions in Appendix 1).

As mentioned previously, the Vice-President & General Manager of Super C and his

team want to review the employee recognition and acknowledgement program, so that

employees enjoy their work experience and are motivated and engaged. Well aware that

in the current context, salary alone is not incentive enough to increase workforce

retention because most of the part-time store employees are paid slightly more than

minimum wage (on average $11.52), Super C Human Resources management believes

that a structured, innovative recognition program adapted to its employees would allow

Super C to gain ground in employee retention.

1 Super C orgchart

VP Operations Super C

Senior Director Operations

Director Operations

Store Director

Department Manager

Clerk

Store Director

Department Manager

Clerk

Merchandising Super C

* 89 store directors

* 8 Operations directors

Services : Human resources,

Marketing, Finance

Business plan priorities

The Super C business plan is based on three pillars:

Customers: improving customer satisfaction (measured by survey)

Financial: continuing to improve efficiency and reduce costs

And employees: developing the best team.

To ensure the development of the best team, the following activities are planned.

Staff development

• Conduct the annual performance evaluation of all employees

• Identify and develop succession for retail operations and marketing

management positions (director, manager and assistant manager, chief)

• Train employees on the three "zero compromise" guarantees

• Train managers on "Creating employee experience upon hiring"

• Promoting career opportunities within the company to employees "The recipe

for your career"

• Train all service department employees on managing checkout wait times

Functioning "Super C’s Five Customer Promises" committees

• Hold 12 committee meetings

Communications plan

• Communicate the 2016 priorities

• Hold an annual meeting of all employees

• Hold a meeting of each sector/department’s specialists, directors and managers

• Use in-store communication boards

Existing recognition program

There are already some measures that are already in place to reward employees. For

example, at Christmas time, each employee receives a corporate gift and a letter signed

by the vice-president (see appendix). During this congress, all employees with 5, 10 and

15 years of service are appointed. In addition, the six Stores Managers having won the

Pizza Supper receive a trophy. Last year, it was a lunch box with the company logo. The

cost is approximately $30 000.

Every year, the store manager organizes two employee dinners – one at Christmas and

the other in summer (BBQ). These activities are paid for by the store and cost about $500

per store per activity. For Christmas, the store manager organizes a dinner with his

management team.

The main recognition activity is the "Our Super Five Customer Promises" competition

(Appendix 6) designed to highlight the employees’ contribution to their store’s

performance and results. It is held place three times a year and covers a four-month

period. At the end of each period, every store and store team are evaluated based on three

criteria, linked to the three pillars of the business plan:

1. Finance

The financial criterion consists of the combined growth in average grocery basket (65%)

and of the number of customers (35%). To moderate the impact of seasonal variations,

the growth of each of these elements (average basket and number of customers) is

established by calculating a growth weighting of 75% based on the previous 16 weeks

and 25% based on the previous year (comparable 16 weeks).

(Growth based on the previous period x 75%) + (growth based on the previous year x 25%)

2. Customer-Survey (customer satisfaction)

The score of 100% is attributed to the store with the highest ratio in a comparison of its

satisfaction survey results (Super C Survey) with the average result for its region (there

are 3 regions). Note that the percentage shown in this column is not the satisfaction

results but rather the position of the store’s results versus the results of other stores.

Stores with fewer than 20 survey respondents per month get an automatic 0% for this

criterion.

3. Work accidents (employees – best team)

Stores with no work accidents during the relevant period get a score of 100%. Scores

between 0% and 100% are calculated based on the frequency rate.

For the three criteria, the gross data of each store is expressed in percentages. For each of

the contest criteria:

1. $100 is awarded to the best result within the banner;

2. 0% is assigned to the lowest result within the banner;

3. Other scores depend on the store’s position compared to the results for the lowest

and highest scores.

The total score represents the weighting of the three criteria:

- 40% for financial results

- 40% for surveys

- 20% for work accidents

Super C stores are divided into two groups: stores in the greater Montreal area and

regional stores. There are two winners per four-month period, but only one winner per

group.

The winner is the store that gets the highest combined score for the three criteria. The

winning store’s employees are eligible for draws of the following prizes:

- Three Super C gift card prizes, worth $500 each

- Three Super C gift card prizes, worth $200 each

- Four Super C gift card prizes, worth $100 each

- Door Prizes – Surprises – Presentation of a commemorative plate

The draw takes place during a pizza dinner, where employees are served lunch by Super

C Management. To be eligible for the draw, an employee has to have been employed for

at least 12 weeks at the periods end.

"Our Super Five Customer Promises" program costs are approximately $21,000 and

break down as follows: 6 grand prizes $2500 + prize for each employee present at the

dinner (between $10 and $20 per person) which totals $600, plus about $450 for the pizza

dinner and 250$ for the fees to rent a room.

Metro Inc. also recognizes the contribution of its employees based on years of

employment with the company. Recognition measures are based on the following policy:

Employees who reach 5 years of service in the reference year receive a letter

signed by the Vice President concerned.

Employees who reach 10 years of service in the reference year receive a Metro

logo pin with a letter signed by the Vice President concerned.

Employees who reach 15 years of service in the reference year receive a letter of

congratulation signed by the Vice President concerned.

Employees who reach 20 years of service in the reference year receive a Metro

logo pin with a card signed by the President and CEO.

Employees who reach 25, 30, 35, 40, 45 or 50 years of service in the reference

year receive a gift from the hands of senior executives at an annual banquet held

in the region where the employee works.

Employees retiring from Metro employees are invited to a retirees’ dinner.

The Human Resources and Corporate Affairs departments of Metro Inc. are responsible

for organizing the annual banquets in Québec City and Montréal. The banquets highlight

the years of service of employees who have worked at Metro for over 25 years. These

guests may come accompanied. The Vice President of Human Resources chairs this

activity. The employees receive their gift, which they chose beforehand, from their

respective Vice President.

The cost is calculated to be $200 per guest (including the guest’s invitee) for the meal and

$435 for the gift to employees with over 25 years of service. In the last two years, there

were respectively 32 and 66 Super C honourees, the majority of whom attended the

banquet.

Vice President

Director Operations

Store Director

Manager Employees

Existing communication tools

The business plan, priorities and new programs are communicated to store managers at

the annual congress held at the beginning of each fiscal year, in September. On their

return to their respective stores, managers must share the business plan priorities with

their employees. A mid-year meeting is held as well to monitor results and communicate

required adjustments.

Stores receive a weekly operations newsletter with all the information relevant to the

store’s ongoing operations.

All reference documents are available via an Intranet portal. (See Appendix 7 for a screen

capture of the home page).

In-store communication is primarily through:

• Communication boards (one in the staff room, and one in each department) updated

weekly by the director and/or managers.

• A bulletin board on which are posted corporate communications or instructions for

employees.

• Flash meetings held regularly by department managers to communicate instructions,

reminders, priorities or objectives.

The communication chain is as follows:

Mandate

The Québec grocery industry is facing plenty of workforce challenges in the coming

years. Jean-Guy Tremblay, Vice President and General Manager of Super C and his team

are pondering this issue and ask for your thoughts on the matter.

Your mandate is to analyse Super C’s recognition activities and propose changes to

enhance their impact on staff engagement and retention.

Your proposal must meet the following characteristics:

- Be coherent and in line with the banner’s image « It’s Nice, It’s Good, It’s not

expensive » (Nice, Good, Inexpensive),

- Be implementation-ready within 12 months of being accepted,

- Encourage profitable behaviours,

- Have a net cost of less than $20,000 a year,

- Be a good fit with existing programs and the Metro Inc. culture.

Super C’s management expects you to be creative and focussed on finding innovative

solutions that are fast and easy to implement.

APPENDIX 5

Testimonials

? Seras-tu le prochain à

trouver la bonne recette?

?

Eduardo – Super C Store Manager

“I started with the Super C team as a meat clerk over 20 years ago. After a few years as a

meat cutter, I was appointed Meat Department Manager, which fuelled my passion for

my work! In 2010, I was selected for the Super C store manager succession program,

which helped me prepare for the position of store manager that I’ve been filling with

great pride since 2011.”

Richard – Director, Retail Operations, McMahon

“At 16, I was standing at the end of a Metro St-Bruno checkout counter. Today I sit at the

head of a table and direct the activities of a team of 15 employees who provide full

service to all McMahon clients. I’ve grown through various positions, in the best possible

company, Metro, a Québec jewel.”

Émilie – Procurement Manager, Meat and Frozen Food

“I began my career at Metro, at store level, when I was a student. I’ve moved up the

ladder over the years, being promoted to a store department manager position, and today I

have the opportunity to meet sizeable challenges as National Procurement Manager, Deli

and Processed Meat. I’m still learning every day and continuing to grow.”

Annette – Deli, Cheese, Prepared Food Specialist, Retail Operations

“I started working in the food industry at 16. I’ve been a Deli, Cheese, and Prepared Food

Specialist for a few years now and lead a fantastic team of 6 technical advisors who

developed their expertise at store level. All along, I’ve met great people who’ve helped

me work my way up in the company.”

Gislain – Merchandising Director, Grocery, Super C

“I’ve been working in the retail industry for over 25 years. It’s thanks to the experience I

gained in the positions of Grocery Department Manager, Grocery Specialist and Category

Manager that I was able to become Merchandising Director. There are a great deal of

career opportunities at Metro, and in most cases, succession is internal.

Will you be the next person to find the right recipe?

APPENDIX 6

"Our Super Five Customer Promises" competition

Super Nice Our

C Good Super Five

Inexpensive Customer

Rigour Consistency Promises

2014-2015 COMPETITION Employee recognition program

to highlight the employees’ contribution to store results

PRIZES TO BE WON

Employees are eligible for draws of the following prizes: Three Super C gift card prizes, worth $500 each

Three Super C gift card prizes, worth $200 each

Four Super C gift card prizes, worth $100 each

Door prizes – Surprises – Commemorative plaque

COMPETITION PERIOD

The year is divided into three (3) periods: PERIOD 1: August 31, 2014 – December 20, 2014

PERIOD 2: December 21, 2014 – May 9, 2015

PERIOD 3: May 10, 2015 – August 29, 2015

TWO WINNERS PER PERIOD – ONE WINNER PER GROUP

The groups are defined as follows: stores in the greater Montreal area and regional stores

CRITERIA At the end of each period, stores are evaluated on the following criteria: Weighting

1. Financial……………………………………………………………40% Increase in sales per customer 65%

Increase in number of customers 35%

2. Customer survey……………………………………………………..40%

3. Work accidents……………………………………………………….20%

The store that wins is the one with the highest combined total for all three (3)

criteria.

The draws take place during a dinner with Super C Management.

(Vice President and General Manager, Senior Operations Director, Retail Execution directors,

Operations directors, specialists, Human Resources and Finance)

To be eligible for the draw, an employee has to have been employed for at least 12 weeks at

period end.

APPENDIX 7

Screen capture- Intranet for the communications of store managers

APPENDIX 8

Letter from Jean-Guy

Greetings to all,

As we leave behind this passed year, I want to extend my personal thanks to

everyone who has invested themselves and used their know-how to maintain

Super C as the Québec discount market leader.

The year 2015 was a very successful one, and your drive and enthusiasm

were the keys to maintaining our corporate standards. You made this success

possible. Day in and day out, you focused on customer satisfaction and

delivered on ‘’Our Super Five Customer Promises” — fresh quality

products, courteous and welcoming employees, a pleasant and efficient

shopping experience, our customers finding what they want, and very

competitive prices.’’

So today, we are pleased to offer you this small token of our gratitude for

your help and support throughout the year.

We have many projects for 2016 and need your engagement, creativity and

enthusiasm to make sure that the ‘’ZERO Compromise’’ program lives up to

our guarantees: ‘’ALWAYS FRESH, ALWAYS IN STOCK, ALWAYS GREAT

PRICES” in order to keep our customers coming back again and again.

Finally, I want to wish you all Happy Holidays and a joyful and successful

2016.

Jean-Guy Tremblay

Vice President and General Manager

APPENDIX 9