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Mr. Delbert MyrickMr. Delbert MyrickDirector of OperationsDeCA EastDirector of OperationsDeCA East
The Military Shopper
DemographicsDemographics
Commissary & ExchangeShopper
Commissary & ExchangeShopper
Who is the Military Shopper?Who is the Military Shopper?
HHLD Income $40K+HHLD Income $40K+ Female Head Age 55+Female Head Age 55+ Younger Bustling FamiliesYounger Bustling Families Empty Nest Couples Empty Nest Couples Senior CouplesSenior Couples Not in Work ForceNot in Work Force African AmericanAfrican American AsianAsian Non-CaucasianNon-Caucasian
Heavy Military Shoppers Top 33% of TotalHeavy Military Shoppers Top 33% of Total• Spend nearly 9X more than light shopperSpend nearly 9X more than light shopper• Purchase in Military outlets nearly every weekPurchase in Military outlets nearly every week• Drive purchase size for channel at nearly $67 per trip.Drive purchase size for channel at nearly $67 per trip.
Heavy Military Shoppers Fiercely LoyalHeavy Military Shoppers Fiercely Loyal• 7X that of the light consumer; double the average7X that of the light consumer; double the average• More likely to purchase in commissary than competitionMore likely to purchase in commissary than competition
The Heavy Shopper Impact!The Heavy Shopper Impact!
Annual 2006% of
ShoppersBuying
RatePurchase
FrequencyPurchase
Size Outlet
Loyalty
Average Shopper 100% $1,291.7 20.8 $62.24 17.4HEAVY Shopper 33% $3,191.2 48.0 $66.52 35.2Light Shopper 67% $342.7 7.2 $47.89 5.2
Military Shoppers Spend Less of Wallet in Channel
12.9%
7.8%
1.2%
33.6%
15.9%
2.4%
1.4%7.2%
17.7% MILITARY
GROCERY
DRUG
MASS MERCH
SUPERCENTERS
CLUB
CONV/GAS
DOLLAR
ALL OTHER
Source: ACNielsen Homescan
Pt Chg vs MY
05
-0.7
-0.6
-0.1
-1.4
+0.3
+0.1
+0.3
-0.3
+2.3
Driven by the On-line Channel
% of All Outlet Loyalty - Mid-Year 2006 % of All Outlet Loyalty - Mid-Year 2006
41.1%1.4%
3.0%
12.6%
1.0%
6.4%25.2%
8.5%
0.8%
MILITARY
GROCERY
DRUG
MASS MERCH
SUPERCENTERS
CLUB
CONV/GAS
DOLLAR
ALL OTHER
Source: ACNielsen Homescan
Pt Chg vs MY
05
-1.2
-1.4
-0.1
-0.1
+0.7
+0.3
+0.2
-0.1
+1.7
Military Shoppers Spend Less of Food & Beverage Wallet in Channel
% of All Outlet Loyalty - Mid-Year 2006 % of All Outlet Loyalty - Mid-Year 2006
Roughly 40% of Military Shop Military Monthly for Food, HBC or GM - drives lower share of wallet
Source: ACNielsen Homescan
MILITARY SHOPPERS PENETRATION (% of Military HHs Purchasing in...)
100.0 98.0
81.990.7
62.3 60.349.5
72.1
58.049.7
69.569.6
86.380.4
97.9100.0
MILITARY GROCERY DRUG MASSMERCH
SUPERS CLUB CONV/GAS DOLLAR
Mid Year 2005 Mid Year 2006
Source: ACNielsen Homescan Total US
More Military Households Shop Supers
MILITARY SHOPPERSFREQUENCY
55.8
13.4
18.2
11.415.0
12.411.0
15.2
10.6
30.3
23.626.9
15.812.1
51.2
21.4
MILITARY GROCERY DRUG MASSMERCH
SUPERS CLUB CONV/GAS DOLLAR
Mid Year 2005 Mid Year 2006
Source: ACNielsen Homescan
Military Shopper Frequency Also Declining EverywhereMilitary Shopper Frequency Also Declining EverywhereOnly Convenience/Gas Trips per Shopper Maintained Only Convenience/Gas Trips per Shopper Maintained
Military Households Stock Up More - Make Less Trips
MILITARY SHOPPERSBASKET SIZE
$70.90
$10.60 $11.20
$20.90
$38.90
$15.70
$46.50
$54.00
$11.80$13.70
$83.20
$51.10
$42.50
$18.00$23.40
$61.00
MILITARY GROCERY DRUG MASS MERCH SUPERS CLUB CONV/GAS DOLLAR
Mid Year 2005 Mid Year 2006
Source: ACNielsen Homescan
Grocery Loyalty Driven by Convenience Trips
Military Shoppers % of channel dollars by trip type
9
13
19
29
41
62
68
70
21
21
26
27
28
17
19
34
32
30
26
21
10
11
37
34
24
18
10
3
5
1
26 9
Warehouse Clubs
Military
Supercenters
Mass Merch
Grocery
Drug
C-Stores
$ Stores
Immediate Fill In Routine Stock-up
Total US—ACNielsen Homescan Shopper Missions, 52wk end 7/2/05
Military Shoppers Decrease Buying Rate @ Most Other Grocers
Dollars Per Military Shopper
$1,275
$1,450
$288
$129
$146
$583
$392
$1,035
$400
$441
$932
$309
$129
$161
$648
$364
$1,161
$516
$436
$907
$1,306
$1,388
MILITARY
WALMART-SC
TARGET
WALGREENS
KMART
SAM'S
SAFEWAY
COSTCO
KROGER
FOOD LION
H-E-B
Mid Year 2005
Mid Year 2006
Source: ACNielsen Homescan
DeCA provides benefit to diverse Patron Base
Patrons come from varied social and economic backgroundsSome are willing to pay a little more for qualitySome live payday to payday, looking for the best priceSome are just looking for the best value
All are looking to the “Commissary Benefit” to meet their needs
•Activity Duty–Officer–Enlisted
•Guard/Reserve
•Retiree•Single•Married•Families
Food StampFood Stamp WIC WIC
RegionRegion $ Value$ Value $ Value $ Value
DeCA East 16,360,013 6,845,557
DeCA West 9,865,423 15,363,330
DeCA Europe NA 6,657,761
Totals 23,225,436 28,866,648
RegionRegion QuantityQuantity $ Value$ Value
DeCA East 68,362,260 50,243,402
DeCA West 54,751,283 40,410,609
DeCA Europe 4,516,892 3,090,083
Totals 127,630,435 93,744,094
300
350
400
450
500
OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP
$ M
illio
ns
Cumulative YTD Sales
-0.8%+1.9%
+1.8%$3611 $3676
FY 2006 FY 2007 FY07 Project
FY 2007 YTD Sales Target: $3676 $0 0.0%
+1.7%
+$65
FY 2006 Vs. FY 2007
Commissary Sales - Total DeCA thru May 2007
+3.4%
+2.5%
+2.1%
-2.1%
+5.9%
150
175
200
225
250
OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP
$ M
illio
ns
Cumulative YTD Sales
+0.8%
+3.4%
+2.9%$ 1677 $ 1725
FY 2006 FY 2007 FY07 Project
FY 2007 YTD Sales Target: $1728 -$3 -0.2%
+2.5%
+$ 48
FY 2006 Vs. FY 2007Commissary Sales – DeCA East thru May 2007Commissary Sales – DeCA East thru May 2007
+3.4% +3.1
%
+4.4%
-2.2%
+7.5%
6.000
6.500
7.000
7.500
8.000
8.500
OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP
FY 2006 FY 2007
Sales Per Transaction
Year Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep YTD
FY 06 $58.28 $59.22 $61.15 $58.06 $58.93 $58.01 $58.71 $57.04 $58.05 $57.60 $57.74 $60.03 $58.96
FY 07 $58.57 $60.57 $62.83 $59.57 $61.26 $60.71 $59.48 $59.87 $60.37
-1.3%
# Transactions
-0.4%
Mil l
ions
-1.0%
Cumulative Transactions -0.446 -1.0%61.528 60.896
FY 2006 Vs. FY 2007
DeCA Customer Transactions Thru May
-1.2%
-1.4%
-0.5%-3.3%
+0.9%
2.000
2.500
3.000
3.500
4.000
OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP
FY 2006 FY 2007
Sales Per Transaction
Year Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep YTD
FY 06 $64.12 $64.81 $66.73 $62.89 $63.90 $62.97 $63.99 $62.35 $63.28 $62.79 $62.67 $65.39 $63.98
FY 07 $63.92 $66.19 $68.31 $64.18 $66.92 $66.31 $65.26 $65.59 $65.84
+1.1%
# Transactions
+1.2%
Mil l
ions
+0.1%
Cumulative Transactions -0.014 -0.1%26.214 26.200
FY 2006 Vs. FY 2007DeCADeCA Eas Eastt CustomerCustomer Transactions Transactions
+1.3%
-1.5%
-0.9%
-4.1%
+2.2%
• Promotional support continues to outpace Promotional support continues to outpace supermarkets supermarkets
– DeCA’s temporary price reduction (TPR) dollar fair DeCA’s temporary price reduction (TPR) dollar fair share index up to 139share index up to 139
• Promotional Category results (unit lift percentages)Promotional Category results (unit lift percentages)– 102% Manager’s Special102% Manager’s Special– 84% Power Buys84% Power Buys– 67% Primaries67% Primaries
• Overall lift percentages outstanding Overall lift percentages outstanding – Unit Lift ~ 49.9%Unit Lift ~ 49.9%– Dollar Lift ~ 27.0%Dollar Lift ~ 27.0%
• Aggregate dollar results from program impressive Aggregate dollar results from program impressive – Sales: $100.6M - Average Per SKU Sales: $12.6KSales: $100.6M - Average Per SKU Sales: $12.6K– Savings: $18.0M - Average Per SKU Savings: $2.3KSavings: $18.0M - Average Per SKU Savings: $2.3K
• Promotional support continues to outpace Promotional support continues to outpace supermarkets supermarkets
– DeCA’s temporary price reduction (TPR) dollar fair DeCA’s temporary price reduction (TPR) dollar fair share index up to 139share index up to 139
• Promotional Category results (unit lift percentages)Promotional Category results (unit lift percentages)– 102% Manager’s Special102% Manager’s Special– 84% Power Buys84% Power Buys– 67% Primaries67% Primaries
• Overall lift percentages outstanding Overall lift percentages outstanding – Unit Lift ~ 49.9%Unit Lift ~ 49.9%– Dollar Lift ~ 27.0%Dollar Lift ~ 27.0%
• Aggregate dollar results from program impressive Aggregate dollar results from program impressive – Sales: $100.6M - Average Per SKU Sales: $12.6KSales: $100.6M - Average Per SKU Sales: $12.6K– Savings: $18.0M - Average Per SKU Savings: $2.3KSavings: $18.0M - Average Per SKU Savings: $2.3K
• Periods 1 thru 9 OverallPeriods 1 thru 9 Overall – Dollar Sales Up 13.4%Dollar Sales Up 13.4%
– Dollar Savings Up 12.5%Dollar Savings Up 12.5%
• FY 07 Projection*FY 07 Projection*– Dollar Sales : $263.4M (+13.1%)Dollar Sales : $263.4M (+13.1%)– Dollar Savings: $53.3M (+12.4%)Dollar Savings: $53.3M (+12.4%)
Promotional Period Promotional Period ResultsResults
* Based on Promotional Period Contributions to Total* Based on Promotional Period Contributions to Total* Based on Promotional Period Contributions to Total* Based on Promotional Period Contributions to Total
RankRank DateDate Net SalesNet Sales EventEvent
11 1/31/20041/31/2004 $26,032,612.39 $26,032,612.39 Super BowlSuper Bowl
22 2/3/20072/3/2007 $26,029,117.16 $26,029,117.16 Super BowlSuper Bowl
33 11/18/200611/18/2006 $25,255,742.11 $25,255,742.11 ThanksgivingThanksgiving
44 2/2/20022/2/2002 $24,835,463.69 $24,835,463.69 Super BowlSuper Bowl
55 11/19/200511/19/2005 $23,802,452.46 $23,802,452.46 ThanksgivingThanksgiving
66 11/17/200111/17/2001 $23,765,390.19 $23,765,390.19 ThanksgivingThanksgiving
77 2/4/20062/4/2006 $23,571,575.01 $23,571,575.01 Super BowlSuper Bowl
88 3/3/20013/3/2001 $23,308,730.41 $23,308,730.41 Pay DayPay Day
99 7/1/20057/1/2005 $23,169,866.86 $23,169,866.86 July 4thJuly 4th
1010 12/30/200512/30/2005 $23,125,008.98 $23,125,008.98 New Year's EveNew Year's Eve
1111 9/2/20069/2/2006 $23,100,835.32 $23,100,835.32 Labor DayLabor Day
1212 12/2/200612/2/2006 $22,896,133.19 $22,896,133.19 Pay DayPay Day
1313 11/20/200411/20/2004 $22,860,682.25 $22,860,682.25 ThanksgivingThanksgiving
1414 9/30/20069/30/2006 $22,638,613.41 $22,638,613.41 Pay DayPay Day
1515 2/3/20012/3/2001 $22,616,317.60 $22,616,317.60 Pay DayPay Day
EventEvent
YearYearDeCADeCA
Worldwide CasesWorldwide CasesDeCADeCA
Worldwide DollarsWorldwide Dollars
20052005 1,599,2831,599,283 $11,666,779$11,666,779
20062006 1,828,6311,828,631 $12,558,388$12,558,388
Percentage Percentage ChangeChange
14.3%14.3% 7.6%7.6%
RegionRegion CasesCasesDeCADeCA
Worldwide DollarsWorldwide Dollars
EuropeEurope 61,04661,046 $775,105.39$775,105.39
EasternEastern 1,042,8261,042,826 $7,084,161.29$7,084,161.29
WesternWestern 721,793721,793 $4,632,153.33$4,632,153.33
TotalTotal 1,826,6651,826,665 +1.6%+1.6%
EventEvent
YearYearUnitsUnits PercentPercent
ChangeChangeDollarsDollars PercentPercent
ChangeChange
2003(S)2003(S) 1,072,81,072,86666
N/AN/A $5,391,89$5,391,8977
N/AN/A
2004(S)2004(S) 1,936,61,936,65151
80.5%80.5% $9,986,97$9,986,9744
85.2%85.2%
2005(S)2005(S) 2,886,42,886,47171
49.0%49.0% $14,064,2$14,064,22424
40.8%40.8%
2006(S)2006(S) 4,195,34,195,37979
45.3%45.3% $23,116,2$23,116,28484
64.4%64.4%
2005(W2005(W))
1,568,31,568,38686
N/AN/A $8,342,99$8,342,9999
N/AN/A
2006(W2006(W))
2,053,72,053,79393
30.9%30.9% $12,151,4$12,151,44444
45.6%45.6%
2007(W2007(W))
2,354,62,354,64848
14.6%14.6% $18,326,5$18,326,51313
50.8%50.8%
• All perishables dollars up $45MAll perishables dollars up $45M
• Sales trends leading the DeCA waySales trends leading the DeCA way
– Produce Produce +7.1% +7.1%
– Bakery Bakery +5.0% +5.0%
– ChillChill +2.4% +2.4%
– FreezeFreeze +2.5% +2.5%
– SeafoodSeafood +30.6% +30.6%
• Meat trend still down, but improved 67% to Meat trend still down, but improved 67% to
-.6%-.6%
Perimeter Departments YTDPerimeter Departments YTD
• East Region pushes Agency resultsEast Region pushes Agency results
• East share of DeCA perishable gain 61% East share of DeCA perishable gain 61%
• All perishables dollars up $27.5MAll perishables dollars up $27.5M
• East department trends outpace AgencyEast department trends outpace Agency– Produce Produce +7.7% +7.7%
– Bakery Bakery +5.2% +5.2%
– ChillChill +3.0% +3.0%
– FreezeFreeze +3.6% +3.6%
– SeafoodSeafood +36.4% +36.4%
– MeatMeat +0.1% +0.1%
East Perimeter Departments YTDEast Perimeter Departments YTD
• Continue to monitor categories reset @ Ft Lee Continue to monitor categories reset @ Ft Lee CommissaryCommissary– New planograms installed within first weekNew planograms installed within first week– Sales impact evaluated for subsequent 24 week periodSales impact evaluated for subsequent 24 week period– Dollar increases dramatic compared to same period PYDollar increases dramatic compared to same period PY– Overall change in dollars for categories involved + Overall change in dollars for categories involved +
7.4% 7.4%
• 60 day set implementation policy could build 60 day set implementation policy could build sales quicklysales quickly– As more set results quantified, sales estimate to be As more set results quantified, sales estimate to be
developed developed
• Continue to monitor categories reset @ Ft Lee Continue to monitor categories reset @ Ft Lee CommissaryCommissary– New planograms installed within first weekNew planograms installed within first week– Sales impact evaluated for subsequent 24 week periodSales impact evaluated for subsequent 24 week period– Dollar increases dramatic compared to same period PYDollar increases dramatic compared to same period PY– Overall change in dollars for categories involved + Overall change in dollars for categories involved +
7.4% 7.4%
• 60 day set implementation policy could build 60 day set implementation policy could build sales quicklysales quickly– As more set results quantified, sales estimate to be As more set results quantified, sales estimate to be
developed developed
• Moderate battery growth during FY 06 – Moderate battery growth during FY 06 – dollars up 4.2%dollars up 4.2%
• New planogram proposed & installedNew planogram proposed & installed• Cleaner merchandising profileCleaner merchandising profile• Aligned with observed consumer behaviorAligned with observed consumer behavior• Blends sales performance data with Blends sales performance data with
purchase motivatorspurchase motivators
• First 12 week assessment – dollars up First 12 week assessment – dollars up 11.1%11.1%
• Moderate battery growth during FY 06 – Moderate battery growth during FY 06 – dollars up 4.2%dollars up 4.2%
• New planogram proposed & installedNew planogram proposed & installed• Cleaner merchandising profileCleaner merchandising profile• Aligned with observed consumer behaviorAligned with observed consumer behavior• Blends sales performance data with Blends sales performance data with
purchase motivatorspurchase motivators
• First 12 week assessment – dollars up First 12 week assessment – dollars up 11.1%11.1%
Partnering Energizes the BunnyPartnering Energizes the Bunny
Capturing Market Opportunity:
New Product Selection
Marketing & Merchandising
Measure & Monitor
Evaluate fit between new products and our consumer
Benchmark new product concepts versus historical new product successes and failures
Identify opportunities to bring in new products that will truly differentiate our stores
Monitor current and projected sales by store class and impact on market basket sales, patron savings
Monitor impact on total category sales
Identify opportunities for DeCA specific marketing strategies
Support with store signage clearly highlighting new product availability; cross- merchandise with other high-purchase products ensure our displays and sampling align with retail launch
• New produce distribution systemNew produce distribution system
• Resulted in improved sales, quality, and pricingResulted in improved sales, quality, and pricing
– Minor concerns being worked expeditiouslyMinor concerns being worked expeditiously
• Decreased order-ship timeDecreased order-ship time
• Improved merchandising supportImproved merchandising support
• Resulting in more frequent shopping trips to storeResulting in more frequent shopping trips to store
• Produce contribution grows to 8.5% of totalProduce contribution grows to 8.5% of total
• Produce growth over twice that of overall Produce growth over twice that of overall
zone growthzone growth• Overall growth : +1.7%Overall growth : +1.7%
• Produce growth : +4.4%Produce growth : +4.4%
Zones 21/23/24/25 Produce Sales On Track
Zones 21/23/24/25 Produce Sales On Track
• New, improved specificationsNew, improved specifications
• Resulted in increased yieldResulted in increased yield
• Reduced laborReduced labor
• Minimal impact on priceMinimal impact on price
• Sales increasingSales increasing
• Pilot test successfully completed (Oct-Dec 06)Pilot test successfully completed (Oct-Dec 06)
• Five participantsFive participants• Kellogg’s, J&J, Nestle, Nabisco, Callard BowserKellogg’s, J&J, Nestle, Nabisco, Callard Bowser
• Seventeen vendors currently participatingSeventeen vendors currently participating
• Additional vendors in negotiationAdditional vendors in negotiation
• Program enhancements under reviewProgram enhancements under review
• Pilot test successfully completed (Oct-Dec 06)Pilot test successfully completed (Oct-Dec 06)
• Five participantsFive participants• Kellogg’s, J&J, Nestle, Nabisco, Callard BowserKellogg’s, J&J, Nestle, Nabisco, Callard Bowser
• Seventeen vendors currently participatingSeventeen vendors currently participating
• Additional vendors in negotiationAdditional vendors in negotiation
• Program enhancements under reviewProgram enhancements under review
• Premium chocolate sectionPremium chocolate section
• Dark chocolatesDark chocolates
• New item introductionsNew item introductions
• Health & well beingHealth & well being– AntioxidantsAntioxidants– OrganicsOrganics
• Premium chocolate sectionPremium chocolate section
• Dark chocolatesDark chocolates
• New item introductionsNew item introductions
• Health & well beingHealth & well being– AntioxidantsAntioxidants– OrganicsOrganics
The Many Facets of Nutrition
1) Convenient Nutrition
2) Kids’ Nutrition
3) Functional Nutrition
4) Nutrition for Beauty
Healthier options reach new heights 2006 Food & Beverage New Product % Offering Health &
Wellness Benefits vs Historical Trend
5%
6%
3%
13%
18%
4%
13%
15%
8%
12%
14%
17%
17%
23%
28%
28% 2006
1997 - 2006Added Nutrients (eg. Vitamins, Soy, Calcium)
Reduced Calorie
High Fiber/Whole Grain
Reduced Fat
Natural/Organic
Zero Trans Fat
Diet Aid
Increased Energy/Protein
Sources: IRI InfoScan® Reviews, New Products Launched February 2005 – January 2006
Trends to Watch
1) Customization
2) Health & Wellness
3) Eco-Friendly Products & Packaging
4) Premium Positioning
• Thanks for the San Diego Experience Thanks for the San Diego Experience
• Six Commissary Council Committees Six Commissary Council Committees
• Broad/comprehensive cooperationBroad/comprehensive cooperation– COOP AdsCOOP Ads– Coupon OutreachCoupon Outreach– Systems ApplicationsSystems Applications– Category Review RefinementsCategory Review Refinements– Promo Support Across DepartmentsPromo Support Across Departments– Vendor StockingVendor Stocking– Promotional ResponsePromotional Response– Market InsightsMarket Insights
• Thanks for the San Diego Experience Thanks for the San Diego Experience
• Six Commissary Council Committees Six Commissary Council Committees
• Broad/comprehensive cooperationBroad/comprehensive cooperation– COOP AdsCOOP Ads– Coupon OutreachCoupon Outreach– Systems ApplicationsSystems Applications– Category Review RefinementsCategory Review Refinements– Promo Support Across DepartmentsPromo Support Across Departments– Vendor StockingVendor Stocking– Promotional ResponsePromotional Response– Market InsightsMarket Insights
March Ad – 80,000 Circ.
May/June Ad 220,000 Circulation
• Intent is to billboard perishable Intent is to billboard perishable departmentsdepartments– Use in DeCA circulars/post newspaper insertsUse in DeCA circulars/post newspaper inserts– Parallels retailer normsParallels retailer norms
• Capitalize on customer’s menu driven Capitalize on customer’s menu driven psychologypsychology
• Build sales synergy & incremental volume Build sales synergy & incremental volume across total promotion package across total promotion package
• Intent is to billboard perishable Intent is to billboard perishable departmentsdepartments– Use in DeCA circulars/post newspaper insertsUse in DeCA circulars/post newspaper inserts– Parallels retailer normsParallels retailer norms
• Capitalize on customer’s menu driven Capitalize on customer’s menu driven psychologypsychology
• Build sales synergy & incremental volume Build sales synergy & incremental volume across total promotion package across total promotion package
• Internet businessInternet business– Develop/implement third party module execute Develop/implement third party module execute
delivery delivery – Expanding AssortmentExpanding Assortment
• Emphasize growth categories Emphasize growth categories
– Allocation of space within the store to align Allocation of space within the store to align with emerging segments with emerging segments
– Focus assortment changes on emerging Focus assortment changes on emerging segmentssegments
– Correct under allocation within the store Correct under allocation within the store
• Internet businessInternet business– Develop/implement third party module execute Develop/implement third party module execute
delivery delivery – Expanding AssortmentExpanding Assortment
• Emphasize growth categories Emphasize growth categories
– Allocation of space within the store to align Allocation of space within the store to align with emerging segments with emerging segments
– Focus assortment changes on emerging Focus assortment changes on emerging segmentssegments
– Correct under allocation within the store Correct under allocation within the store
• Evaluate product mix frequently Evaluate product mix frequently – Specify new item performance objectives up Specify new item performance objectives up
frontfront
– DeCA specific marketing for new itemsDeCA specific marketing for new items
• Create focused view of future market Create focused view of future market conditions conditions
– Collective effort with industry – retail insightsCollective effort with industry – retail insights– Predict most likely mix of goods/services Predict most likely mix of goods/services
demanded by future consumers demanded by future consumers – Evaluate space allocation based on future Evaluate space allocation based on future
demand versus past performancedemand versus past performance– Establish objectives refine plans on the move as Establish objectives refine plans on the move as
conditions/insights warrant conditions/insights warrant
• Evaluate product mix frequently Evaluate product mix frequently – Specify new item performance objectives up Specify new item performance objectives up
frontfront
– DeCA specific marketing for new itemsDeCA specific marketing for new items
• Create focused view of future market Create focused view of future market conditions conditions
– Collective effort with industry – retail insightsCollective effort with industry – retail insights– Predict most likely mix of goods/services Predict most likely mix of goods/services
demanded by future consumers demanded by future consumers – Evaluate space allocation based on future Evaluate space allocation based on future
demand versus past performancedemand versus past performance– Establish objectives refine plans on the move as Establish objectives refine plans on the move as
conditions/insights warrant conditions/insights warrant
Front End Merchandising
• CARTS roll out to impact current rack CARTS roll out to impact current rack placementsplacements
• Created a front end buyer position – Mr. Joel Created a front end buyer position – Mr. Joel SmallSmall
• Opportunity to increase sales with improved Opportunity to increase sales with improved front end merchandisingfront end merchandising
• Snacks create growthSnacks create growth– Consumable - 98% of Households buy snacksConsumable - 98% of Households buy snacks
– Expandable – 55% unplanned, 80% eaten within Expandable – 55% unplanned, 80% eaten within 30 minutes of purchase30 minutes of purchase
What We Plan For 2007
Working with Impulse Marketing & The Working with Impulse Marketing & The SourceSource
Identifying optimal spacing and fixturesIdentifying optimal spacing and fixtures• How to merchandise at self check outsHow to merchandise at self check outs
Implement assortment that mirrors what Implement assortment that mirrors what the consumer is looking for at check outthe consumer is looking for at check out
• Treasure hunt with club packs – build shopping Treasure hunt with club packs – build shopping fun fun – Match your mix to patron facesMatch your mix to patron faces– Use as lever to enhance trade support throughout storeUse as lever to enhance trade support throughout store
• Expansion of display-ready palletsExpansion of display-ready pallets– Big buck opportunity @ minimal labor costBig buck opportunity @ minimal labor cost– Send visuals & details in advance electronicallySend visuals & details in advance electronically
• Streamlining promotional package sizeStreamlining promotional package size
– Reducing listing of line item extensionsReducing listing of line item extensions– Reducing number of secondary itemsReducing number of secondary items– Extending promotional support throughout K codes Extending promotional support throughout K codes
• Treasure hunt with club packs – build shopping Treasure hunt with club packs – build shopping fun fun – Match your mix to patron facesMatch your mix to patron faces– Use as lever to enhance trade support throughout storeUse as lever to enhance trade support throughout store
• Expansion of display-ready palletsExpansion of display-ready pallets– Big buck opportunity @ minimal labor costBig buck opportunity @ minimal labor cost– Send visuals & details in advance electronicallySend visuals & details in advance electronically
• Streamlining promotional package sizeStreamlining promotional package size
– Reducing listing of line item extensionsReducing listing of line item extensions– Reducing number of secondary itemsReducing number of secondary items– Extending promotional support throughout K codes Extending promotional support throughout K codes
● Improve promotional flexibilityImprove promotional flexibility
●Take advantage of consumer Take advantage of consumer advertising associated with new item advertising associated with new item launches launches
●Take advantage of “close out” specialsTake advantage of “close out” specials
● Include perimeter departments in all Include perimeter departments in all promotional packagespromotional packages
● Improve promotional flexibilityImprove promotional flexibility
●Take advantage of consumer Take advantage of consumer advertising associated with new item advertising associated with new item launches launches
●Take advantage of “close out” specialsTake advantage of “close out” specials
● Include perimeter departments in all Include perimeter departments in all promotional packagespromotional packages
• Be aggressive – use “the glass is half full” Be aggressive – use “the glass is half full” approachapproach
– Meat truckloads / seafood roadshows Meat truckloads / seafood roadshows – Farmer’s markets / plant truckloadsFarmer’s markets / plant truckloads– Complement with special contractor sales effortsComplement with special contractor sales efforts
• Use all authorized media/methods to get Use all authorized media/methods to get the word outthe word out
– Be ready for perishable ads in base newspapers Be ready for perishable ads in base newspapers
• Cross-merchandise – build a “total store” Cross-merchandise – build a “total store” plan & execute plan & execute
• Organics are growing rapidlyOrganics are growing rapidly
• Be aggressive – use “the glass is half full” Be aggressive – use “the glass is half full” approachapproach
– Meat truckloads / seafood roadshows Meat truckloads / seafood roadshows – Farmer’s markets / plant truckloadsFarmer’s markets / plant truckloads– Complement with special contractor sales effortsComplement with special contractor sales efforts
• Use all authorized media/methods to get Use all authorized media/methods to get the word outthe word out
– Be ready for perishable ads in base newspapers Be ready for perishable ads in base newspapers
• Cross-merchandise – build a “total store” Cross-merchandise – build a “total store” plan & execute plan & execute
• Organics are growing rapidlyOrganics are growing rapidly
• Don’t forget the perimeterDon’t forget the perimeter
• Focus on impulse itemsFocus on impulse items
• Case Lot Sales Case Lot Sales
• Club pack program has become annual Club pack program has become annual programprogram
– Focus on hot deals as well as seasonal Focus on hot deals as well as seasonal
Support vendor stocking on payday Support vendor stocking on payday weekendsweekends
And Create Excitement!And Create Excitement!