Business
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.
Business
ADB approves $100 million loan to boost skills development and jobs for youth in Sri Lanka
The Asian Development Bank (ADB) has approved a $100 million results-based loan to help Sri Lanka transform its technical and vocational education and training (TVET) system, equip more young people with industry-relevant skills, and strengthen the country’s competitiveness and inclusive growth.
The Skills Development System Transformation Program will support the Government of Sri Lanka’s efforts in improving the quality and relevance of skills training, strengthening links between training providers and industries, and expanding employment opportunities for youth. The program will increase women’s employment opportunities in nontraditional jobs in fields including automotive technology, engineering, information and communications technology, construction, and renewable energy.
“A skilled workforce is essential to Sri Lanka’s long-term economic transformation and competitiveness,” said ADB Country Director for Sri Lanka Shannon Cowlin. “This program will help create stronger pathways from education to employment by making training more responsive to industry needs, expanding opportunities for young people and women, and ensuring that graduates have the skills required by a modern and evolving economy.”
Though Sri Lanka’s economy is recovering, it faces skills shortages in priority sectors, high youth unemployment, and low female labor force participation. Many employers report difficulty finding workers with the skills needed in a changing economy.
Aligned with the Government of Sri Lanka’s Technical and Vocational Education and Training Sector Strategic Framework 2026–2035, the nationwide program will be implemented from 2027 to 2031 and is expected to directly benefit more than 100,000 young people through improved access to quality, employment-oriented training.
Business
USD 40.84m pipeline to secure aviation fuel supplies to BIA
By Ifham Nizam
The government has cleared a USD 40.84 million and Rs. 8,548.75 million contract to build a dedicated aviation fuel pipeline from Muthurajawela to Bandaranaike International Airport (BIA), alongside a massive new fuel storage facility with a capacity of 92,000 cubic metres.
Energy Minister Anura Karunatilaka said the project represented a major investment in strengthening the infrastructure underpinning Sri Lanka’s aviation fuel supply and ensuring more reliable fuel availability at the country’s main international airport.
‘This project will provide the infrastructure required to strengthen the reliability and continuity of aviation fuel supplies to Bandaranaike International Airport, Karunatilaka said.
The contract has been awarded to China Petroleum Pipeline Engineering Company Limited, following an international competitive procurement process in which three bids were received.
The project will see a new aviation fuel storage tank complex constructed at Muthurajawela, together with the associated infrastructure required for handling and transferring aviation fuel.
Business
CSE activity up, turnover weak at Rs. 1.4 billion
By Hiran H Senewiratne
Trading activity on the Colombo Stock Exchange (CSE) gathered pace yesterday as global fuel prices began to show signs of easing, according to market analysts.In this context, both indices moved upwards. All Share Price Index up by 67.97 points while S and P SL20 up by 8.30 points.
Turnover stood at Rs 1.4 billion with seven crossings. Those crossings were reported in Sampath Bank 1.7 million shares crossed to the tune of Rs 238 million and its share price traded at Rs 140, Access Engineering two million shares crossed to the tune of Rs 159 million and its share price traded at Rs 79.50, LOLC one million shares crossed to the tune of Rs 129 million and its share price traded at Rs 129, HNB 100,000 shares crossed to the tune of Rs 38.4 million and its share price traded at Rs 384, JKH 1.9 million shares crossed to the tune of Rs 35 million and its share price traded at Rs 18.60, Hayleys 100,000 shares crossed to the tune of Rs 22.50 million and its share price traded at Rs 225 and Richard Pieris 847,000 shares crossed to the tune of Rs 22 million and its share price traded at Rs 25.50.
In the retail market top seven companies that have mainly contributed to the turnover were Sampath Bank Rs 114 million (813,000 shares traded), JKH Rs 100 million (5.3 million shares traded) LB Finance Rs 49 million (325,000 shares traded), HNB Finance Rs 30 million (27 million shares traded), HNB Rs 27 million (70000 shares traded), NTB Rs 25 million (82000 shares traded ) and Lanka IOC Rs 21 million (666,000 shares traded). During the day 65 million shares volumes changed hands in 10433 transactions.
The Banking and manufacturing sector counters performed well. In the banking sector Sampath Bank let the market while manufacturing sector especially JKH also significantly performed well. With the fuel revision Land IOC also a significant stock at the floor.
Meanwhile, First Capital Treasuries said that Ramesh Schaffter resigned as a Non-Independent Non-Executive Director with effect from October 1, to facilitate the restructuring of the company’s board.
Yesterday the Central Bank announced the US Dollar rate as against rupee. The rupee was quoted flat at Rs 330.65/80 to the US dollar in the spot market , while bond yields dropped, dealers said.
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