2014 annual report

BUSINESS REPORT 2014

RETAIL AND CAMPUS SERVICES

2Retail and Campus Services

TABLE OF CONTENTSEXECUTIVE SUMMARY 3

INTRODUCTION

Who We Are 5

Vision and Mission 6

Importance of Retail and Campus Services 6

OVERVIEW

Hospitality Services 7

Retail Services 9

Transportation Services 11

Guest Accommodation Services 13

Conference and Event Services 15

Print Services 17

Mail Services 17

FINANCIAL STATEMENTS

Historical Growth 19

Revenue Growth 20

FINDINGS

Market Analysis 21

Strategy and Implementation 21

Limitations 21

CONCLUSIONS

Future Growth of Retail and Campus Services 22

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Cory B. Good Senior Director of Retail Services

EXECUTIVE SUMMARY

Cory B. Good

3 Retail and Campus Services

Retail and Campus Services is committed to providing outstanding customer services by managing a variety of integral services key to the MacEwan University community. Our department is comprised of the University Bookstores, Hospitality Services, Conference and Event Services, Guest Accommodations, Transportation Services, Print Services, and Mail Services. In addition, Retail and Campus Services also manages MacEwan University’s Property Management department, which consists of commercial buildings and properties. We are an ancillary branch of University Services that is responsible for generating its own revenue and sustaining its fiscal capability. We have grown from $18 million to $23 million in the last four years and increased our average annual cash flow to more than $1.77 million dollars. We have also contributed $7.1 million dollars back to the university since 2011 and continue to see substantial growth for the next five years. Whether it’s purchasing textbooks every semester or meeting daily school needs, students who appreciate our products and retail services have a better experience on campus. As a result, we are looking to improve retention rates by bringing products that students will need to enhance their university experience and bring them a sense of comfort and convenience. Our team is engaged and connected with our demographic and assess market trends to find items and brands that resonate with our campus. However, Retail and Campus Services is facing a paradigm shift. Student expectations and purchasing power are becoming more demanding and as a result have a direct correlation to the return on investment to MacEwan University. This has been evident with our department growth as we continually innovate, evolve, and tailor our services to reflect student needs. With the anticipated development of the new Downtown Arena District, Retail and Campus Services will still need support to compete in a vibrant marketplace and provide services for both financial returns, but more importantly, to enhance the MacEwan University experience.

3Retail and Campus Services

MEET THE TEAM

Administration Department

Susan CooperCoordinator of Hospitality ServicesJames MacDonaldCoordinator of Transportation, Print and Mail Services

Mauro SanchezCoordinator of Retail Services

Management Team

Erin WaltonManager of Conference and Event Services

Wendy BrostManager of Guest Accommodation Services

Cory B. Good Senior Director of Retail and HospitalityKris BruckmannDirector of Operations and HospitalityJennifer GargBusiness Planning ManagerMary MalottMarketing and Communications ConsultantChantal KlutheAdministrative Assistant IV

1WHO ARE WERetail and Campus Services is an ancillary department of University Services that is solely responsible for generating its own revenue and sustain its fiscal capability in a competitive marketplace.

We implement long range planning strategies, support sustainable purchasing, and enhance ancillary operations.

This includes: • Hospitality Services • Retail Services • Conference and Event Services• Guest Accommodations Services• Transportation Services• Print Services• Mail Services• MacEwan University Property Management

VISIONExperience. Success. Together.

Experience - By providing outstanding customer experiences through our knowledge, dedication and expertise.

Success - To create successful outcomes in all things we do.

Together - To work collaboratively and create win-win relationships is the foundation of our success.

MISSIONWe strive to deliver outstanding customer experience by managing a variety of integral services key to the MacEwan University community.

VALUESCustomer focus – We perform all tasks with our customers’ best interest as our guide. We seek to create long-lasting relationships.

Collaboration – We will always seek opportunities to work together toward win-win outcomes. We will support and care for every member of our team.

Innovation – We seek opportunities to learn new ideas to create best in class service. We take responsibility to find and deliver best business practices.

Communication – We believe that open and honest communication creates long-lasting relationships. We will be open to and will create opportunities for customer feedback.

GROWTH OF RETAIL AND CAMPUS SERVICES


• Retail and Campus Services has grown from $10 million to $23 million since 2009.

• Launched new website platform for the bookstore and generated $359,000 in online textbook sales in the first semester.

• Transportation Services successfully launched their Car Share Program and Ride Share Program during the Fall Term.

2010• Transportation Services was

consolidated into Retail and Campus Services fiscal retail plan and generated 14% revenue growth.

2011

2014

• Overall, Food Services grew more than 19% in gross sales.

2012• Guest Accommodation Services grew

more than 120% in revenue sales in the last 2 years.

• Two new local food vendors added to City Centre Market.

2013• Conference and Event Services revenue

sales grew from 9% in 2011 to 33% in 2012.• In the past 3 years internal & external events

have generated an excess of 3 million dollars in gross revenue

• Starbucks built and opened at City Centre Campus.

We provide a food service program for students, faculty and staff that focuses on quality, value, and variety specific to the needs of consumers at all campus locations. Our department has elevated campus food to another level, which has been welcomed by all including the downtown community and we continue to contribute positively to the students’ MacEwan University experience.

We provide convenient vending services, from cold vending to snack vending as well as automated teller services. We also administer the university’s liquor licenses, ensuring university policy and procedures and Alberta Gaming and Liquor Commission (AGLC) regulations are complied with.


Revenue Growth

$0.00

$20,000.00

$40,000.00

$60,000.00

$80,000.00

$100,000.00

$120,000.00

$140,000.00

July

Augus

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Septem

ber

Octobe

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Novem

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Decem

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March

Apr

il May

June

Hospitality Top Grossing 2013 Months

$3,400,000

$3,600,000

$3,800,000

$4,000,000

$4,200,000

$4,400,000

$4,600,000

2009 2010 2011 2012 2013

Hospitality Revenue Growth

Financial Review

Hospitality Services has seen a 36% revenue increase

1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr 1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr

Total Sales for 2011/12

$3,678,388.00


$4,983,892.001st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr 1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr 1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr 1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr

$5,796,918.00




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2012 2013 2014

Operational Highlights

Revenue Growth of 19%

Student Financial Awards of $7500 annually

$35,000 in total sponsorships to SAMU, Athletics, New

Student Orientation, Welcome Back, Residence

Life, and Open House

$

Challenges• Maintaining student-friendly pricing.• Keeping pace with trends in the food

and vending marketplace.• Increased need to change concepts

more often while ensuring capital investments meet expected return on investment.

• Volatility in commodity and product pricing affect cost of food and goods.

• Competitive Alberta labour market affects staffing in the hospitality sector and we are experiencing staff shortages on campus.

Increased our social media presence by 177%

Increased availability and awareness of healthy and local

food options on campus

Decor upgrades to the Convenience Store and

105 Street food kiosk


Financial Review

Revenue Growth

-$500,000.00

$0.00

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00

$3,000,000.00

$3,500,000.00

$4,000,000.00

$4,500,000.00

July

Augus

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Septem

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Octobe

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March

Apr

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June

Bookstore Top Grossing 2013 Months

Retail Services includes all non-food service related retail on campus such as the bookstores, local vendor markets, and our newest venture Griffins Landing. The MacEwan Bookstore, or mstore, is responsible for all of the purchasing and selling of course textbooks, coursepacks, school supplies, computer accessories, special orders, web orders, University branded apparel, giftware and book buyback. Recipient of the 2014 IABC Edmonton Capital Award of Excellence for Marketing and Advertising for our mstore Back to School 2013 campaign, the mstore continues to lead the Canadian university retail industry with new innovations and campaigns that effectively relate to our student demographic in an innovative and trendy way.With the book market moving to more online and digital sales the mstore developed a full service ecommerce website. Students can now go online, order their learning materials and university swag, and have it delivered straight to their door. The successful launch of our new website in August 2014 generated a surprising $400,000 in sales.



$9,798,356.00



$10,781,914.00




Retail Services has seen a 9% revenue increase

$9,200,000

$9,400,000

$9,600,000

$9,800,000

$10,000,000

$10,200,000

$10,400,000

$10,600,000

$10,800,000

$11,000,000

2011 2012 2013 2014

Bookstores Revenue Growth


262,505 Annual Transactions107,000 textbooks sold annually

Online Sales of $400,000 in Fall Term 2014

This year we gave $321,336 back in the

hands of students through book buyback

New this year! 80,000 AIR MILES Reward Miles

issued to customers Bookstore sold a total of

106,500 textbooks in the fiscal year

$

Challenges• The market increase of online/digital

sales.• Space as we consolidate

bookstore(s) operations from the satellite campuses.

• Increase in textbook prices with US exchange rates is affecting revenue.


Revenue Growth

$0.00

$50,000.00

$100,000.00

$150,000.00

$200,000.00

$250,000.00

$300,000.00

$350,000.00

$400,000.00

$450,000.00

July

Augus

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Septem

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Octobe

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Novem

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Febru

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March

April

May

June

Parking Top Grossing 2013 Months

Financial Review

Transportation Services is responsible for the sale, distribution, and enforcement of daily and monthly parking as well as the administration of ETS @ Work Passes, Car Share Program, Ride Share Program, Taxi and Shuttle Services, and all bicycle racks for all campus locations. The vitality of MacEwan University’s City Centre Campus is dependent, in part, on readily available parking for faculty, staff, students and visitors. While the long-term objective is to reduce dependency on the automobile and to promote alternative modes of transportation, the university is under increasing pressure to provide a sufficient parking supply to support continued campus development programs.

In 2013/2014, we introduced our Student Car Share Program with KIA Motors and Ride Share Program with Wheeli. These new initiatives were for students, staff, and faculty looking for alternatives to parking on campus.

TRANSPORTATIONSERVICES



$3,362,099.00



$3,958,623.00




Transportation Services has seen a 14% revenue increase

$0.00

$50,000.00

$100,000.00

$150,000.00

$200,000.00

$250,000.00

$300,000.00

$350,000.00

$400,000.00

$450,000.00

July

August

September

October

November

December

January

February

March

April

May

June

Parking Top Grossing 2013 Months Transportation Services Grossing 2013 Months

0

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3500000

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4500000

2011 2012 2013 2014


Joined Retail and Campus Services in 2010

Revenue Growth of 14% Improved enforcement on

parking violation

Updated online purchasing website to include mobile

compatibility and parking pass delivery options

Upgraded parkade equipmentIncreased revenue will accrue

when new arena opens

Launched our Car Share Program, Ride Share, and Honk Mobile

Raised $25,000 for charity with SAMU, MSA, Conservatory of

Music and Athletics.

$

Challenges• Retail and Campus Services and

Bunt & Associates prepared a Transportation Master Plan Study (2012), which provided an overview of the existing transportation and transit conditions and outlined a number of opportunities and challenges for accommodating future growth at the Downtown Campus. One of the key findings from this work was that to meet future demands at the downtown campus, additional parking resources will be required.

• Changing the format of parking, moving from surface to structured parking facilities, would provide an opportunity to repurpose existing surface lots to make the best use of off-street parking spaces. Parking structures would also allow for a more walkable plan to be implemented at the City Centre Campus.

This department is responsible for the university’s guest accommodation business in the residence. Guest Accommodation Services generates revenue for the university from individual and group short and long term stays, in the nine year-round hotel rooms and student residence suites when they are not occupied by students.

90% of our total revenue is generated during the May to mid-August time period where the majority of our groups staying in residence are 70% youth groups or 25% educational or professional associations.


Revenue Growth

GUEST ACCOMMODATIONSERVICES

$-

$50,000.00

$100,000.00

$150,000.00

$200,000.00

$250,000.00

July

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April

May

June

Summer & Group Accommodations Top Grossing 2013 Months

Financial Review



$399,286.00


$624,814.001st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr 1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr 1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr 1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr

$793,965.00




Guest Accommodation Services has seen a 27% revenue increase

0

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2012 2013 2014

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2012 2013 2014


134 groups and 5,635 guests stayed in Residence for a total of 20,935 room nights during

summer 2014

Established partnerships with Expedia and Booking.com

Was the offical residence of choice for Cavalia

Comprehensive rate review and implementation of new rates

in 2013.Completed hotel room decor

upgrade in July 2013

Number of groups have doubled in the past 2 years

Long term stays have tripled from 2011 to 2013

•

$

Challenges• Increasing the efficiency of

residence during spring turnover to increase guest revenue and reduce residence expenses.

• Increased nights where hotel rooms are sold out and we turn away business.

• Need to maximize vacant student suites to increase residence revenue.

Conference and Event Services is a centralized service that uses a collaborative model with several university departments to provide conference, meeting, and event planning services to both external and internal groups. While generating a return for the university and promoting community engagement with the university, we ensure our services are reflective of this institution and our pillars.


Revenue Growth

CONFERENCE AND EVENT SERVICES

$0.00

$100,000.00

$200,000.00

$300,000.00

$400,000.00

$500,000.00

$600,000.00

$700,000.00

July

Augus

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Sept

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Novem

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Decem

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April

May

June

Conference & Events Top Grossing 2013 Months

Financial Review



$1,249,486.00



$1,593,840.00




Conference and Event Services has seen a 8% revenue increase

0

200000

400000

600000

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1200000

1400000

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2012 2013 2014


Gross event sales revenue growth at 8%

In the past 3 years internal & external events held at MacEwan University have generated an excess of 4

million dollars in gross revenue.

Comprehensive rate review and implementation of new rates for 2013

325 external events, 59 internal events, coordinated which

brought 88,533 guests to the university in 2014

$

Challenges• Decreased availability of

space due to increase in academic activity requirements.

• Assumed responsibility for coordination of AV Service (equipment and technician support) to internal events after this department was closed during the 2013 budget. New model now funds x2 AV event technicians available to the university year round.


Revenue Growth

PRINT AND MAILROOMSERVICES

Financial Review



$578,726.00


$860,967.001st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr 1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr 1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr 1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr

$997,625.00




Print and Mail Services has seen a 24% revenue increase

Xerox is the offical printer for MacEwan University. They are an exclusive branch of Transportation Services and are responsible for third party and all department orders. Located in Building 5, they ensure all print requests are carried out effectively and in a timely manner.

Mail Services is the only base funded ancillary business that Retail and Campus Services operates. We are currently exploring a new high production web enabled mail processing system that will allow us to add new streams of revenue.

0

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2010 2011 2012 2013 2014

Print Revenue Growth


Launched new student rate campaign and increased print

orders by 14%

Launched new Print Services website with easier access for

online orders

Mail Services successfully managed all web order pickups

for the mstore

Xerox sponsored in kind print services to the Student

Business Conference and SAMU Clubs for 2014

$

Challenges• Lack of onsite printer

resources result in more third party print jobs.

• Central office printing has increased.

• Mail equipment is dated and will require updating.

• Last minute print requests. • Sustainability initiatives.

FINANCIAL STATEMENTS


2009

2010

2011

2012

2013

2014

$10,364,054

$13,863,680

$18,672,555

$19,283,018

$21,235,448

$22,939,699

Total Gross Revenue

Retail and Campus Services revenue has increased by 121% over the past six years averaging 18% year over year.

0

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10000000

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20000000

25000000

2009 2010 2011 2012 2013 2014

RCS Gross Revenue Growth 2009-2014

FINDINGS

Market AnalysisMarket research suggests that university retail services will be facing a paradigm shift in the next five years.

With many students going online and having increased accessibility to product information and price comparison, our demographic will expect to see exceptional services and products made available to them as part of the overall university experience.

Retail and Campus Services needs to ensure we are meeting this demand and overall expectation in order to sustain our revenue and grow even further.

Strategy and ImplmentationOur strategy for the next five years will be to monitor yearly growth, implement cost saving initiatives, and develop a master retail plan to combine existing services with new services that are appealing to the student demographic.

We will also utilize performance management to increase efficiencies in all areas and ensure we implement new revenue generating ideas.

ChallengesDespite our significant growth over the years, there are several challenges that we need to address in order for Retail and Campus Services to grow. Each department has noted their concerns, however, they all stem from two key challenges: physical location and hours of operation.

Based on the 2012/13 Space Management report, Retail and Campus Services occupies less than 1% of MacEwan University’s physical location. This has caused many constraints such as decreased customer access, congested traffic flows and lack of square footage, which is detrimental for our success and the overall MacEwan University experience. Hours of operation have also been a challenge for our department. The majority of our target audience is on campus between the hours of 8:00am to 5:00pm, which decreases our opportunity to provide services after hours.


FUTURE GROWTH OF RETAIL AND CAMPUS SERVICES

Retail and Campus Services has made great strides in the last four years. Although we have challenges, we will not stop our mission to enhance the MacEwan University student experience.

The mometum generated from each department is evident in our dedication to ensure our services and products are aligned with MacEwan University pillars.

2014 annual report

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overview hospitality

outstanding customer

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