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No business case for selling bookstore

My story begins on June 14, 1996, in a full page feature ad in the Advocate promoting Red Deer College.

My story begins on June 14, 1996, in a full page feature ad in the Advocate promoting Red Deer College. A young single mom of a then five-year-old boy, I studied for two years at RDC before leaving Red Deer to complete a bachelor of commerce degree that was — and still remains — unavailable at RDC.

After completing my degree I returned to Central Alberta to raise my son, where I have had the privilege of working for some of the best employers we are so fortunate to have in and around our fair City.

As a Red Deerian and alumnus of RDC, you can imagine my pride to return to work at the very place where I first learned the impact of great marketing, the importance of debits and credits and the excellence that comes from organizational practices which inspire and empower the staff of businesses both large and small.

So after just four months on the job, I was shocked to learn that our service to the RDC bookstore was no longer desired.

Generally speaking, retail operations that are locally owned and turn a good profit lessen the public tax burden of the institution, and are considered to be a strong asset to the organization and the community.

However, the decision by RDC management to privatize has placed little value on the locally-owned and profitable asset that is the bookstore.

Having learned my business studies at RDC very well, I could potentially support a business case for privatization, but only if it proves to be the most viable solution to maintain the sustainability of my alma mater. To date, the public has been informed that the privatization plan exists mainly for the following reasons:

l the bookstore is in need of upgrades/renovations — cost: approximately $1-$2 million;

l installing technology to sell digital books — cost: approximately $750,000.

What appears to be misleading is the fact that renovations to the premises were completed about 10 years ago, and are still in good working order, and that the bookstore currently sells digital texts or ebooks, meaning the technology already exists for these transactions.

Additionally, the request for proposals for the contract operation of the bookstore (available at http://vendor purchasingconnection.ca/Search.aspx under Campus Bookstore Management) only notes that:

l the potential exists for future renovations; and

l the contractor must make every reasonable effort to supply used textbooks and when practical electronic versions.

Perhaps I’ve missed something in my reading, but I don’t see the requirement for millions of dollars in additional upgrades or technology required in the bid. So what then is the true reasoning behind the privatization plan?

Most puzzling is that in my time in the bookstore, I have not once seen the senior manager enter the store, ask for input on how to improve merchandise turnover rates, increase revenues or for any other suggestions for efficiencies from the experienced personnel who use their expertise daily to create a strong revenue stream for the college.

To summarize, we have a store that turns a good profit, is locally owned and operated, maintains lower-than-standard retail markups on merchandise and textbooks, being turned over to the highest bidder (most likely an American company).

It is also worthy of mention that RDC is a member of Red Deer Regional Economic Development (RDRED) — a partnership between RDC, the City of Red Deer, Red Deer County and the Red Deer Chamber of Commerce — whose purpose is to “attract business and stimulate investment throughout the Red Deer region.”

But, it is safe to say the intention of RDRED is to keep the profit from that investment, not only in the Red Deer region but preferably in Canada.

If there is a strong business case that this is the most sustainable and profitable solution for my school, then I will respect the board of governors’ wishes, even though employees are being laid off.

However, this involves the delivery of bad news to employees. And here is the point where my pride in my school has been diminished.

Under such circumstances, I would hope management would at its best use kindness and compassion; and at its worst, use business etiquette and politeness, to deliver such a devastating message.

However, I am disappointed and ashamed to say that our experienced and highly-compensated senior managers did not even have the courtesy to:

l introduce themselves before bearing the bad news — some of us had never met or even seen them before;

l say thank you to those people who have given years of service; or

l visit the bookstore in the days since to check on the staff members who continue to conduct “business as usual” as they were so casually asked to do with little to no direction or supervision.

There is not a nice way to deliver this bad news, but the disrespect and lack of concern for the employees has been shocking to say the least. I expected more from our highly regarded institution.

My son is now enrolled as a student at RDC, as are other family members. I must question if this is the type of leadership that I desire for them.

Is this educational institution making a positive influence on the next generation of investors in our businesses, our city and our economic region?

I challenge the board of directors, and even the RDRED partners to thoroughly consider the long-term impact this change will make to an institution that is such an influential player in the culture and identity of Red Deer.

Arminnie Good

General merchandise buyer, alumnus and parent

Red Deer