Jun 10, 2009

Laura Secord faces off against Tim HortonsBy Hollie ShawFinancialPost.com

Could Laura Secord be the next challenger to Tim Hortons?

The veteran retail chocolatier is looking at new retail formats to invigorate the chain and increase sales, including test marketing a cafe concept at several of its stores across Canada, chief executive Bryan Crittenden confirmed Tuesday.

“If I look at the research in terms of building a growth agenda, the consumer is very much asking for coffee in our locations and that is something that we are evaluating,” he said. Within the food service category, “60% to 65% of those instant consumption opportunities involve beverages. I think we can come up with some attractive options to put in there, even some beyond coffee, given the strength of this brand.”

He also cited a consumer perception linking coffee with treats such as chocolate, noting chocolate products are sold at Starbucks cafes.

Mr. Crittenden, former vice-president of the international division at Hershey Co., who was hired a year ago in an effort to improve operations at Laura Secord, said the initial test would involve two to three stores in each province. “I’d love to get it in and hit the Christmas traffic but I’m not sure whether we can do it that quickly. We would have to see how many stores we could execute. We are in the process of evaluating that.”

He noted profits at the privately held retailer, which opened its first store in Toronto in 1913, were up in the most recent quarter after streamlined back office processes lowered costs, but sales were flat.

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