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MISSISSAUGA, Ontario — Mary Kelly enjoys her work.
Mary Kelly enjoys her work.
Trained as a pharmacist, Kelly spent the majority of her career at Target Corp., where she played a pivotal role in leading the team that built the discount store operator’s prescription drug business from a few stores into a 1,500-pharmacy operation by the time she departed in 2008. During 17 years at the company she also fostered a passion for understanding customers and became a respected merchant. Her next assignment was to oversee the front-end offerings at Shoppers Drug Mart. Kelly’s mastery of both aspects of the business makes her one of the most influential women in mass market retailing and creates high expectations as she settles into her new role as executive vice president and chief merchandising officer at Rexall.
"The opportunities that I’ve been fortunate enough to have had in my career provide an exciting combination," says Kelly. "The sweet spot that I hope to bring to Rexall is an understanding of how the front end complements the pharmacy to form a total store experience. That requires really digging in and knowing the customer, and then engaging our supplier partners to help us create an experience that our customers love."
Rexall should prove fertile ground for those efforts. Chief executive officer Frank Scorpiniti has in recent years made the company an innovator among North American drug chains, consistently raising the bar in terms of store design, unique brands and health services.
"Rexall is a very different store, with a very important customer, than we had at Shoppers," notes Kelly, who joined the company last October. "Health care has always come first. Having a pharmacy background, it’s incredible to see the innovation and services that pharmacists in Canada are able to deliver. With the front of the store as an emerging focus, the balance of the pharmacy to other categories is different than at other drug chains. Completing that health experience is our No. 1 priority in the front-end businesses."
The health and wellness orientation at Rexall is readily apparent in the design of the company’s new stores, as well as in such categories as over-the-counter medications, nutritional supplements, beauty products, skin care and personal care.
"We’re in the process of collecting key customer insights to help guide our path to delivering differentiated products and services in these gorgeous stores. Our environment is devoted to healthy living and supporting our customers in their quest to both look and feel good," Kelly says. "If you think about the growth in naturopathic and homeopathic medicines, natural health and beauty products, and nutritionals, and then add the potential impact of health and beauty ambassadors, we have an opportunity to become Canada’s complete healthy daily living destination for the health-conscious young family, our growing population of seniors and new Canadians."
While the company’s strategy is anchored in the pharmacy, an emphasis on health and well-being radiates throughout the store. It shows up in the specialty skin care section, the convenience food aisle and the beauty care department, which is staffed by well-trained, unbiased advisors.
"We’re working to understand how health, nutrition, beauty and natural come together to provide our customers with a feel-good experience," notes Kelly. "In the end, our job is to convince consumers that when they come to Rexall they can count on receiving the support they need — whether that includes products, advice or services — to help them feel good every day. That message is already starting to resonate."
Private label merchandise and exclusive brands are an important part of the strategy. The retailer last year launched five new store brand programs, led by Be.Better. The flagship line is focused on wellness and healthier living. It includes such products as healthful snack options, environmentally friendly cleaning products, gluten-free vitamins and hair care items made with natural ingredients.
"Be.Better is doing extraordinarily well," Kelly says. "The packaging clearly states what’s better about the products, and our customers have responded enthusiastically. The brand has become a benchmark for what we’re trying to accomplish. Our team is very focused on growing our private label assortments, as well as our branded business, and we know that we need to continue to deliver a differentiated offering and experience for our customers.
"Our merchant teams work hard to find what resonates; our customers expand from that foundation," she explains. "We find opportunity in health, naturals, food, snacking, homeopathic medicines, skin care, beauty products — actually everything that we sell.
"To ensure that we have the right mix, we’re willing to try new things and work with smaller suppliers. We also realize that some of our larger manufacturer partners have products that they know work in other countries. We can bring them to North America and see how they perform. Our demographics and diversity make Canada a great testing environment."
She might add that Rexall is an ideal place for such experiments. At 455 stores, it retains a high degree of flexibility, a characteristic bigger chains usually lack.
"This company is well positioned to deliver a unique experience for Canadian customers in health, beauty and well-being," says Kelly. "I’m very fortunate to have the opportunity to be part of that transformation, and continue to learn and grow. It’s a lot of fun."
