Rexall Makeover and

Its Impact on Human

Resources

Today’s Agenda…

• Introduction

• A brief history

• Brand reinvention and acquisition strategies

– Impact on HR

– Attract

– Retain

– Motivate

• Summary of findings

2

My career…

• Joined Katz Group Canada in 2003 and has held his current position of Executive Vice

President, Human Resources and Corporate Relations since 2006

• Human Resources, Organizational Development and Training, Recruitment and

Retention, Communications, Legal

• President and Chair of Rexall Foundation

• Held several senior positions at TD Canada Trust in Information Technology,

Operations and Development

• Former Vice President, Human Resources, Money Foods North America

3

4

1996 1997

Rexall chain

acquired Pharma Plus Drugmart

chain acquired

A Walk Through Our Evolution…

1992

First Medicine

Shoppe Opens

2000

Katz acquires

Drug Trading

2004

First new large

format concept

store launched

2011 2005

Pharma Plus

rebrands as

Rexall

A Walk Through Our Evolution…

200+ new or

repositioned Rexall

and Rexall Pharma

Plus pharmacies

2012 2012

Katz Group

sells Guardian

and IDA

Katz Group

acquires Dell

Pharmacies

2012

Launch:

brand

reinvention

HR – DNA

7

Organizational Culture

Company Brand

Employee Value

Proposition

Total Rewards Strategy

Compensation

Benefits

Work-Life

Performance & Recognition

Development & Career Opportunities

Attract Retain

Motivate

Employee

Satisfaction & Engagement

Performance & Results

Business

Brand Reinvention

8

9

10

11

12

Rexall’s Strategy

13

Attract

14

• Where is the company going?

• What is the external message?

• What is the employer brand?

Ultimately, how will the organization be perceived by candidates?

We have a defined strategy to win…

15

Our Brand Position For the health-conscious young family, Rexall is

Canada’s complete healthy daily living destination,

which, like a mega-dose of “feel good,” inspires and

makes it easier to live a healthier and happier life.

Attract - Our Core Values…

Attract - What Makes Us Special?

18

8%

80%

% of Stores % of Flu Shots

+329%

10X

Ontario Flu Shots – 2012

Attract - How Do We Make A Difference in People’s Lives?

Most complete

health experience

First in

“Feel Good”

Innovation

Processes

Technology

Skills, capabilities, talent

Easier to shop

Always a ‘feel good’

choice

Front Shop

Price Strategy Growth through

Acquisitions

MANTRA

WIN

DIFFERENTIATE

COMPETE In-stock & on-shelf

FOUND-

ATION

Quick and

easy Rx

All-in

destination for

top 5 health

topics

‘Best of both

worlds’ health

expertise

Feel good

guides

Personalized

health

experience

Inspiring ‘feel

good’ store

Brand defining

owned

products

‘Right where

you are’ flexible

store formats

Retail

calendar Specialty

Rx

Easiest multi-

channel

shopping

experience

Easy

Access Easier to

serve my

customers

First to market

Health &

Wellness

services

Rx Price Strategy

First to market Health &

Wellness products

Easy to

feel good.

Every way.

Every day.

Retain - Competitive Strategy

Retain – Change Means Learning

Retain – Impact on Talent Management Process

Retain – Incentive Programs

Motivate

I would recommend this company as a good place to work.

73%

Motivate

• Improvement was made on 3 key metrics

Engagement Metric Survey #1 Survey #2 Difference Retail

Benchmark

Engagement Scores

Overall

Corporate

Stores

5 Engagement Drivers:

1. Executive Management Driver item #14

2. Customer/Patient Service Driver item #7

3. Training & Development Driver item #22

4. Operating Efficiency Driver item #10

5. Teamwork Driver item #11

55%

60%

+5% -1% +1% -2% +1%

Survey Participation Rate

% of Engagement Action Plans Completed

Motivate - Recognition Programs

26

Motivate - Total Rewards

5 pieces of Total Rewards

•Pay – base pay, vacation pay, bonus, merit, commission payments

•Benefits – medical, dental and insurance coverage

•Retirement – a company matched pension program

•Recognition – Service Awards, WOW cards

•Perks – employee discount, employee purchase program

27

Acquisitions

28

Corporate Stores

Total 473 (April 2016)

13

1

23

289

95

51

1

29

Seschelt, BC

30

31

Devon, AB

32

Devon, AB

33

Acquisitions

• Develop a Mergers & Acquisitions playbook in order to:

– Facilitate efficient and effective due diligence and integration of newly acquired

stores

– Assess how the store culture impacts the operating environment and help them

integrate into Rexall

– Develop a retention strategy for key talent acquired

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Acquisitions

• Evaluate and align structure and roles

• Assess the total rewards strategy to align with company

• Have a comprehensive change management plan

– Emotions

– Union/Non-union

– Communications/Onboarding

• What are the values of the organization?

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• The Rexall Foundation has been helping build strong and vibrant communities by supporting numerous charitable organizations since 2002.

• In 2015, the Rexall Foundation donated over $1,000,000 to 84 charities and organizations in Canada, which helped 774 children.

Summary

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Summary

What does this mean for a true HR business partner organization?

• Brand reinvention:

– Culture

– Today’s leaders, are they tomorrows?

– Employee engagement

– HR programs live up to the ‘new’ brand

• Acquisitions:

– Playbook

– Culture

– Emotions

– HR programs to onboard

39

Thank

You 40