f the consumers it services. CEQ’s network of 29 stores offers many of the core grocery items found in a traditional supermarket – ranging from fresh produce to non-disposable items – to large items such as washing machines, but presented in smaller store formats. Chief executive Michael Dykes told Inside Retail that the logistical costs involved in running CEQ’s operations are more intricate and specialised than most mainstream operators. “For instance, we could have a banana that’s been on the water for three weeks, and you have to get it to the location at a point where it’s ripe and ready-to-eat. Our supply chains are really technical, and it has taken a long time to reach [this level of] maturity,” Dykes said. “The other factor is the cost when something goes wrong. If an ATM machine breaks down [in the city] it would probably involve a $1,000 repair, which can be completed on the same day. In the locations where we operate, it could cost $30,000 and involve two different trips on a helicopter. So it’s retail, but not as anyone else knows it.” In many cases, “we’re the only store in town,” he said. “Customers can’t go to the shop down the road. So when it comes to deliveries and logistics, it doesn’t get more essential than what we’re doing.” 29 different initiatives Called “the remote store of the future,” CEQ recently held the grand opening of its Bamaga store, located in Far North Queensland, which could serve as a template for the rest of its store network. The new concept store involves a modern look, feel and design, and includes a range of new initiatives. These include additional product lines, bulk buys and “deadly deals” which offer discounts on healthier choices, seniors discounts, a self service café – called The Wis Wei Café, as well as eco-friendly shopping trolleys made from recycled milk bottles, and resources to help consumers grow their own produce. CEQ has also introduced an e-market online order system, which enables consumers to order items not available in store, as well as ‘HappyOrNot’ customer feedback kiosks to gauge success. It has also removed confectionary chocolate from its checkout, to further encourage healthier options. Dykes explained that CEQ is reinvesting about a third of its surplus profits into its store network, and that its e-market system, which covers over 100 product lines, reflects improvements made to its distribution centre over the years. In the past, large items such as sofas and big screen TVs could take weeks to deliver to remote locations, and involve significant delivery costs. Now, this process might take a few days, and involve reduced costs. Dykes also points to CEQ’s bulk deals – such as its ‘apple bins’, costing about 40 cents per apple – as a way to promote fresh produce.   “A bar of chocolate might cost consumers more, but we can sell fresh produce cheaper. It’s a conscious choice that, not only us, but the communities we serve are willing to trade off against,” he said. “There’s about 29 different initiatives that have been launched in the Bamaga store, and it makes for a much more vibrant and exciting shopping destination.” Cost of living and health outcomes The Bamaga store soft-opened about eight weeks before the grand opening, which provided an opportunity for CEQ to gather customer feedback. Through its customer kiosks, which have also been rolled out across 29 stores, it has received over 11,000 pieces of feedback. Dykes noted that CEQ is working to collate and understand this data, so it can tailor its offering accordingly. “The purpose of these kiosks is to improve our performance [in a way that’s] scalable across our other stores. We are going into a period before and over Christmas where we’ll look at that data, learn from it, and then refresh our programs early in the new year,” he said. He added that addressing cost-of-living pressures – and improving health outcomes –  is a key driver for many of its initiatives. “It’s not a secret when you look at Indigenous health compared to mainstream health, it’s very different. Indigenous people are living eight years shorter than their white counterparts. These stores have a big part to play in that,” he said. Many of CEQ’s initiatives are also aimed at providing support for vulnerable members of the community. “By bringing city supermarket-style shopping, healthier food options, and an array of innovative concepts to Bamaga, CEQ is determined to redefine the retail landscape in the region,” Dykes said.