LAUGFS Supermarkets, the retail business of LAUGFS Holdings, kept all its outlets open during the 52-day Covid-19 lockdown. Director and Chief Executive Officer Lilanthi Herath shares insights into LAUGFS Supermarkets’ lockdown strategy, and unphased by the pandemic, its expansion plans for the year ahead.

How did the Covid-19 lockdown impact LAUGFS Supermarkets and what steps did you take to serve customers during that challenging period?

Lilanthi: All outlets were operational to facilitate the online and call orders and mobile supermarket operations. LAUGFS Super was the only retail chain to keep all its outlets open even before the essential services that could operate during the lockdown were officially announced. We did not close any outlet even for a single day. We did have a few challenges. The usual peak seasonal demand ahead of the April New Year did not materialise this year because of the restrictions on people’s movements and income constraints.

We also had challenges around getting staff to work but managed to ensure smooth operations with a third of the staff. We quickly organised curfew passes for critical personnel needed to run our retail operations smoothly and the success we have had is testament to their dedication.

We also introduced mobile units providing groceries, bakery products and general merchandise. Our customers especially appreciated the baked goods our Crimson Bakery, a LAUGFS venture, delivered right up to their doorsteps during the lockdown. We have a skilled team of chefs and bakers who worked tirelessly during this period turning out an extensive range of baked products, which no doubt brought comfort to an appreciative customer base as indicated by the heightened demand throughout the lockdown.

We focused on delivering the essentials. Demand for essentials like everyday groceries noticeably increased during the lockdown and we managed to cater to consumer needs during this difficult period. We also took steps to reach out to people at their homes. We deployed a fleet of motorbikes and tuks to make home deliveries, and this initiative provided daily income to many people who otherwise could not find adequate work during the lockdown. As a result, our customer base expanded significantly during the lockdown period.

How did innovation and technology help you reach consumers during the lockdown?

Lilanthi: Digital technology helped us pivot to e-commerce enabling consumers to place their orders with a LAUGFS Super outlet of their choice. We already had an online sales platform even before the pandemic, which we revamped to meet increasing demand during the lockdown. This proved to be a great success. We were able to satisfy most of our customer needs during the lockdown, reaching them through the dedicated hotline and social media platforms. Our aim was to somehow attend to all their needs and I am happy that my team did a stellar job in that regard.

How did your staff respond to the challenging period which no doubt caused apprehensions for them too?

Lilanthi: I cannot emphasize enough the role of our people in all this. They say it takes a challenge to bring out the best in people and that was aptly demonstrated at LAUGFS Super. Our small yet committed team of outlet managers and staff worked tirelessly to serve customers throughout the lockdown period.

While we took every measure to ensure their wellbeing and safety during the lockdown period, the highlight was the extraordinary level of dedication, focus and motivation demonstrated by the LAUGFS Super family to serve others during the challenging times.

The way everyone responded and stepped up was truly inspirational. Our passionate team is behind our success, they are the ones taking us out of this crisis and propelling the company towards greatness.

What are the company’s prospects post Covid?

Lilanthi: Since the lockdown lifted, footfall at our outlets is yet to recover. Consumer spending is weak and economic activity has not picked up; the streets are quiet earlier than usual every evening. However, we believe normalcy will return soon. The pandemic has forced lifestyle changes on everyone. Social distancing norms like sanitising hands, wearing facemasks and avoiding crowded areas have changed the way consumers shop. People spend less time pushing a cart around with one hand and carrying a long grocery list with the other.

Incomes have fallen too, and all this means a lower footfall at retail outlets and this will impact any business in this sector. Despite the growth in online retail during the lockdown, we see many people shifting back to physical shopping. At LAUGFS Supermarkets, we are taking measures to sustain the online sales momentum.

Our customers can continue to shop online but they have the option of picking up their purchases themselves, or have it delivered to them. Sri Lankan lifestyles are evolving, and LAUGFS Supermarkets will look at customising both our outlets and offerings going forward. This is something that excites us. We are passionate about creating unique experiences for customers so we will continue to invest in the business. For instance, we recently opened a convenience store at the Kotelawala Defence University in Werahara, our first project during Covid-19.

This convenience store model is something we want to expand going ahead. We will expand our Crimson Bakery business and launch a chain of Crimson Cafés this year. There are several beneficial synergies across the LAUGFS Holdings group we will explore.

The LAUGFS brand is well known and associated with several products close to consumers’ hearts and part of their daily lives from fresh groceries at LAUGFS Supermarkets to LP gas, petroleum, lubricants, and other car care products. We recently celebrated our 25th year and although we are relatively young compared to competitors, LAUGFS has quickly grown into a household brand.

The group’s focus is to build a global entity that is a Sri Lankan brand at heart. Everyone one of us at LAUGFS Supermarkets lives our brand proposition ‘Fresh and Friendly Service’. Our fresh categories and Crimson Bakery products are popular with customers and our special weekend deals go like hotcakes and there is nothing more satisfying and humbling to experience consumers making a dash for your products every week!

We are different because of our people and for almost two decades LAUGFS served many customers being the neighbourhood convenience store. We are planning to redefine convenience in the future as well, and we at LAUGFS Super will continuously push this bar higher.