During the last two years, in the midst of all the confusion and chaos brought upon by the COVID-19 pandemic, Massy Stores embarked on the most rapid expansion drive in its history, opening 13 new locations across the region in just 18 months.
Three of those were in Trinidad (Shops of Arima, Freeport and Discomart in San Juan), five in St Lucia, three in Guyana and one each in Barbados and St Vincent.
And on Monday, Massy opened in Brentwood, Chaguanas, pumping close to $100 million in investment, representing the fifth and largest store to be opened in Trinidad during the pandemic. It is also Massy’s 23rd store in Trinidad and its 61st in the Caribbean.
So what continues to be Massy Stores’ secret to success?
David Affonso, executive vice-president and chairman, integrated retail portfolio, Massy Group, attests that a large part of its achievement has to do with attentively listening to the needs of customers and responding efficiently and effectively to an ever-changing business environment.
“Customers ultimately know what they want and sometimes it’s just listening and understanding that and trying our best to deliver that. I think also that working with our teams and staff and making sure they are happy and once they are happy the service is normally excellent,” Affonso told the Business Guardian following Massy’s Brentwood opening.
Additionally, he said, being fair and transparent with business partners and suppliers are also critical elements of its sound model, emphasising that the “rules of the game” also need to be established and understood from the onset.
“If we list you then you understand why. If we cannot you also understand why and those are clearly defined as with everything and that’s a large part of it for us,” he added.
On future expansions while Affonso did not disclose figures, he did admit that Massy intends to open several other stores throughout Trinidad which are expected to come on-stream within the next year. And the region will not be left out.
“We will continue with our footprint expansion across the Caribbean. Guyana is a promising market for us. In Barbados there is opportunity, in St Lucia, in St Vincent there are still opportunities and we continue to look at other opportunities,” Affonso added.
However, regarding Tobago, the company has no plans at this time to expand there. During the launch Trade Minister Paula Gopee-Scoon said she would welcome Massy becoming involved in manufacturing. Affonso, however, described the entity’s concept as primarily being in supermarket/retail.
Nevertheless, Massy carries a host of locally made items and according to Affonso these products are prioritised, ensuring that they reach the customers via its shelves.
Additionally, he added, that Massy continues to support the local farming community in a big way, packaging a variety of produce through its central location for availability at all its stores.
But while Massy is not into the food manufacturing business, Gervase Warner, president and Group CEO, Massy Group explained that the company has a gas products portfolio in which it has a carbon dioxide facility that compresses CO2 and exports this through the Caribbean.
Further, Warner added, that the company has air separation units that it runs and operates.
“And we have different gases which we support; oxygen, nitrogen, being shipped throughout the region. So we are a manufacturer in another segment not necessarily in the food segment. We are able to contribute to export from T&T through some of the other sectors in which Massy is quite active,” Warner further explained.
On-going supply chain issues
Massy, like other businesses, continues to face significant challenges due to supply chain disruptions.
And, according to Affonso, it has been getting “a little worse,” not only in terms of increasing shipping costs but regarding the availability of goods and equipment.
“When we were doing this store (Brentwood) some of the refrigeration equipment sat from December until March before we could get containers to move it.
“It was available, it was bought, it was paid for. We just could not get shipping containers to move it from the supplier,” Affonso explained.
Additionally, he said, not only has the price of goods been rapidly escalating but there have been other obstacles.
“In many items, from basic items to vodka, people don’t have bottles, they don’t have covers for the bottles etc so we are getting a lot of difficulty with that aspect of the supply chain,” Affonso explained.
Fortunately, he added, the company has a model in the Caribbean which is distribution into retail which acts as a buffer.
“That gives us a bit of time. If we can’t find something we source it elsewhere or we look for an alternate product etc, so that’s what protects the shelf and that’s why our shelves do not look like the North American shelves,” Affonso said, referring to bare supermarket shelves abroad which ran out of many items during COVID.
Warner who echoed these sentiments zeroed in on the concept of “first world versus us,” noting that toilet paper for instance, was scarce in many countries abroad during the pandemic.
“Not at Massy stores. We have a different model. Instead of running out of items we have inventory on the ground where people were panic buying and we could still supply shelves,” Warner added.
Forex remains challenging
Foreign exchange has always been a challenge in T&T and businesses as well as ordinary citizens continue to feel the squeeze, Warner said.
But, he noted, higher gas and petrochemical prices have given T&T a “little bit of a breather.”
More importantly, Massy has been exploring different avenues of generating its own forex.
According to Warner this is being done through its remittance business, its gas business exports and some of its energy services business which is billed in US dollars.
“So we as an importer can also make sure we are not completely, but trying to get to a point where we are self-sufficient on foreign exchange,” Warner added.
Ease of doing business
When Massy Brentwood opened, its pharmacy remained closed as it was yet to be granted a licence to operate.
While one is expected to be given this week Warner, on the ease of doing business in this country said: “We could not get that permission. Why? I don’t think that is a really great reason which could not be achieved in time...that’s part of doing business in T&T.”
Noting that while there have been previous initiatives to tackle this problem Warner said it remains a work in progress, adding that more can be done.
“Will we really get there? I hope so in my lifetime,” Warner said, adding however, that the issue is not unique to this country but also exists in the Caribbean.
And COVID hasn’t helped T&T, Affonso also said, noting this was evident when some institutions were closed, proving difficult for a seamless approval process.
And for an operation like Massy Brentwood, he explained it needed between 15 to 16 approvals before opening.
“And they (approvals) don’t always line up all at once,” Affonso said.
And while he praised Gopee-Scoon for her unwavering support, he advised that it would be helpful to have a central operation or the facilitation of more online transactions to ensure there’s a cohesive business environment in T&T.
“But we are getting there,” Affonso also noted
Creating communities
Massy Stores represent much more than just a mere supermarket.
It’s a communal space. A commonplace where old friends run into each other, where ideas are born and where the building blocks of communities are laid.
“Supermarkets are places where people who haven’t seen each other for a long time meet.
“These meetings in turn, not only foster friendships but they form into communities,” Warner said, noting that this encapsulates the company’s vision of creating value, transforming lives.
Additionally, he said part of what the organisation believes that it can do through business is to create “an example, an energy,” and a sense of how people can work together to actually enable great things that are beyond world-class.
“This is where different races, creeds, perspectives can meet, in a supermarket and just be as one, “ Warner added.