During the 1950s, Quebec's population grows rapidly,
rising from 4,000,000 to 5,000,000. These years are marked by
growing urbanization, the arrival of thousands of immigrants and
strong economic growth, all of which radically transform the face
of Quebec and the lifestyles of its people.
Enjoying favourable conditions, the retail sector reaches new heights. Between 1946 and 1960, car sales grow seven-fold. Strong growth is also felt in the area of staples such as food and clothing whose 1960 sales are three to four times greater than those of 1946. Television, which did not appear in Quebec until 1952, is already in 90% of households by 1960, fostering the emergence of new values by opening a window to the world.
On the political scene, the Union Nationale, in power since 1944, is unable to recover from the death of Maurice Duplessis in September 1959. A few months later, voters elect Jean Lesage and his "équipe du tonnerre", paving the way for the Quiet Revolution. The government proceeds to implement major reforms, particularly in the fields of education, health and social services.
Encouraged by these favourable conditions, management starts making the changes that would ensure the sound development of its business. In July 1958, work begins on the expansion of the Leclaire Street warehouse. The Company's financial structure is also reviewed, while its executives focus on developing stricter management standards. This leads to an initial increase in authorized capital, which jumps from $40,000 to $640,000, consisting of 200 common voting shares and 3,000 preferred shares with a par value of $200 per share. One year later, the group's member-grocers benefit from a new service: the cooperative purchase of meat.
The group's progress generates greater traffic at the warehouse.
In 1959, barely two years after its decision to extend sales to
non-members, the Company is proud to announce that it meets the
needs of more than 150 grocers from Montreal and surroundings who
are not members of the group. These purchases are in addition to
those of member-grocers whose numbers have now grown to 91. Invited
to cover one of the group's banquets, a journalist at La voix
populaire enthusiastically praises the Company's progress in a
February 1960 article entitled: "Essor gigantesque de cette
entreprise de chez nous" (giant strides for this Quebec-based
company). He is particularly impressed with the rapid increase in
sales, attributing this performance to the dynamism of these
retailers who, as a group, spent more than three-quarters of a
million dollars to renovate their stores in 1959 alone. In less
than a dozen years, Les Épiceries Lasalle Groceteria
Ltée have become the largest voluntary group in Quebec.
Lack of space soon prompts the Company's management to purchase a 280,000-square-foot lot on Notre-Dame Street in east-end Montreal. Extending over an area of approximately 165,000 square feet, the new warehouse is inaugurated in 1964. This decision is well-timed: the warehouse's sales total nearly $40 million, 20 times the 1955 figure.
The popularity of the Metro grocers group continues to grow throughout this decade. Favouring a formula that allows them to benefit from joint purchases and advertising, most grocers who decide to join the association opt for the banner. As a result, by 1961, Les Épiceries Lasalle Groceteria Ltée have 133 members. Of these, 31 have chosen to keep the Lasalle name, while the others have joined the Metro grocers group. At the time, about half of these food stores are located in Montreal, although a growing number are located in nearby suburbs. The Metro banner is also making significant inroads in the province's smaller towns, extending the group's outreach from Montreal to Sainte-Agathe, Valleyfield, Saint-Jean, Saint-Hyacinthe and Shawinigan.
At the time, an investment of $3,500 is required to join the group. This amount entitles members to one common share and 14 preferred shares. It also includes a $500 non-refundable admission fee which goes into a special fund used to organize social events. For a lump sum of $10 a week, new members benefit from all of the banner's advertising. The Company starts to air daily radio commercials and take out newspaper ads. In March 1962, it proudly publishes its first colour circular. Every week, members receive new window displays and a list of sale items. Finally, various training programs and assistance services are made available.
Seven years after its inception, the Metro banner has become a formula for success, leading management to change its name to Les Marchés d'Aliments Metro-Lasalle Ltée in 1963. The group's expansion soon requires a further increase in authorized capital, which is raised to $1,280,000 in 1964. The number of common shares rises to 400, and the number of preferred shares to 6,000. The par value of the two classes of shares remain unchanged at $200.
Given the appearance and rapid growth of shopping centres in the 1960s, Metro executives prefer to consolidate the group's position and build on what they consider its key assets: quality service and neighbourly relations between members and their customers. Advertising campaigns therefore focus on Metro grocer's constant concern for good customer service.
In 1961, group members start distributing Gold Star
stamps to their customers. These stamps are so closely identified
with this period that this promotional tool inspired Michel
Tremblay's highly acclaimed play, "Les belles-soeurs". Highly
popular with shoppers, this concept is based on a fairly simple
principle. Every time customers go into a grocery store to
shop, they receive stamps which they can stick in a booklet and
accumulate. They also receive a catalogue illustrating various
consumer items which can be purchased with a certain number of
stamps. This formula proves so popular with customers that it is
taken up by all groups of grocers as well as major chains. In 1965,
Metro decides to create its own series, introducing Grand Prix
stamps.
Television's growing popularity is not lost on
Company executives who are quick to recognize the advertising
potential offered by this new communications medium. In 1961, Metro
innovates by becoming the main sponsor of "Avec plaisir", a variety
show hosted by Monique Gaube. A few years later, the Company is
proud to be associated with the first colour broadcast on
Télé-Metropole (1966).
Over the years, the small screen also serves as an advertising vehicle for "Metro-gains". Based on a formula that is now well known, short messages featuring sales items are broadcast at regular intervals on Radio-Canada, Télé-Metropole and CFCF. In 1966, the group adopts a new slogan: "Mon voisin Metro" featuring the image of a small Metro grocery store owner as its visual.
During the 1967 Montreal International Exhibition,
Quebec welcomes thousands of tourists from around the world. In
addition to establishing Montreal as an international port of call,
the event gives Quebecers a broader outlook on the world. The
Exhibition is a unique opportunity to discover and appreciate new
lifestyles. In a number of pavilions, visitors can sample exotic
dishes and unusual culinary products. Expo '67 marks an important
step in the development of the food industry, prompting retailers
to offer the new products their customers now seek.
For Les Marchés d'Aliments Metro-Lasalle
Ltée, this date is also important in that it marks an
alliance with Épiceries Richelieu Limitée, another
group of retailers. After countless studies and discussions, the
two companies decide to create a jointly managed meat distribution
company as equal partners. The project is designed to improve
service to members, allowing them to benefit from efficient
service, as well as improved purchasing conditions and rigorous
quality control. Once the agreement is ratified, the two companies
announce the construction of a vast 35,000-square-foot warehouse in
Montreal North, to house the future facilities of Boeuf
Mérite Ltée.
At the end of the 1967 fiscal year, Les Marchés d'Aliments Metro-Lasalle Ltée posts excellent financial results. Once again, the year closes with an increase in warehouse sales, which are slightly over $70 million. Some 20 years after its creation, the Company boasts 245 stores, 171,400 square feet of warehouse space, consolidated assets of close to $7 million and $1.9 million in operating capital.
