48
Mr. Thomas E. Milks Director of Sales February 28, 2007
Mr. Thomas E. MilksMr. Thomas E. MilksDirector of SalesDirector of Sales
February 28, 2007 February 28, 2007
• OrganizationOrganization
• Issues Affecting Consumer Package Goods Issues Affecting Consumer Package Goods
(CPG) Industry (CPG) Industry
• How We DidHow We Did
• PerimeterPerimeter
• Center StoreCenter Store
• 2007 Initiatives2007 Initiatives
• OrganizationOrganization
• Issues Affecting Consumer Package Goods Issues Affecting Consumer Package Goods
(CPG) Industry (CPG) Industry
• How We DidHow We Did
• PerimeterPerimeter
• Center StoreCenter Store
• 2007 Initiatives2007 Initiatives
DirectorSales
Tom MilksPS
Perishable DivDave Shaw
PSP
Semi-Perishable DivRandy Chandler
PSM
ResaleContracting Div
Larry HahnPSC
Special Projects DivBill Mehler
PSS
Distribution/OPPDonna Starkus-Ward
PSVO
Business SystemsCarol Ricker
PSVS
Virtual CommissaryTransportation Div
Del Myrick
PSV
Reset TeamSteve Sones
PSSR
TransportationArlene Ripp
PSVT
Category MgtBranchPSM
Produce SupportBranch
Sarah SaundersPSCP
Brand Name ResaleBranch
Judge MaysPSCB
Resale CommoditiesBranch
Sheila NorfusPSCC
Resale ServicesBranch
Phyllis McGowanPSCS
Promotions BranchPSM
SystemsSharon Rahe
PSA
Organization Effective January 22, 2006Organization Effective January 22, 2006
• GlobalizationGlobalization
• Continual product portfolio managementContinual product portfolio management
• Price line vs brand name productsPrice line vs brand name products
• Rising costsRising costs
• Supply chain complexitySupply chain complexity
• GlobalizationGlobalization
• Continual product portfolio managementContinual product portfolio management
• Price line vs brand name productsPrice line vs brand name products
• Rising costsRising costs
• Supply chain complexitySupply chain complexity
• Anti-aging productsAnti-aging products
• Chocolate – the darker the betterChocolate – the darker the better
• Junk food made overJunk food made over
• Locally grown foodLocally grown food
• Probiotics in yogurt and beyondProbiotics in yogurt and beyond
• Anti-aging productsAnti-aging products
• Chocolate – the darker the betterChocolate – the darker the better
• Junk food made overJunk food made over
• Locally grown foodLocally grown food
• Probiotics in yogurt and beyondProbiotics in yogurt and beyond
• Consumer segmentation affected by Consumer segmentation affected by
shifting consumption patternsshifting consumption patterns
– HealthHealth
– ConvenienceConvenience
– LifestyleLifestyle
• NewNew
• Consumer segmentation affected by Consumer segmentation affected by
shifting consumption patternsshifting consumption patterns
– HealthHealth
– ConvenienceConvenience
– LifestyleLifestyle
• NewNew
AgeAge
GenderGender
IncomeIncome
AgeAge
GenderGender
IncomeIncome
TraditionalTraditionalTraditionalTraditional
• Redefine relationshipsRedefine relationships
• Create valueCreate value
• Achieve goalsAchieve goals
• Customize programsCustomize programs
• Create “WOW” factorCreate “WOW” factor
• Redefine relationshipsRedefine relationships
• Create valueCreate value
• Achieve goalsAchieve goals
• Customize programsCustomize programs
• Create “WOW” factorCreate “WOW” factor
• Last year sales vibrantLast year sales vibrant
– $48M above prior year$48M above prior year
– Perishable numbers simply outstandingPerishable numbers simply outstanding
– Shift from center store sales occurring, but not Shift from center store sales occurring, but not
as severe as retailas severe as retail
• Promotional support continued to outpace Promotional support continued to outpace
supermarketssupermarkets
– Last year’s savings held steady at 32%Last year’s savings held steady at 32%
– DeCA’s temporary price reduction (TPR) dollar DeCA’s temporary price reduction (TPR) dollar
fair share index highly developed @ 136fair share index highly developed @ 136
• Last year sales vibrantLast year sales vibrant
– $48M above prior year$48M above prior year
– Perishable numbers simply outstandingPerishable numbers simply outstanding
– Shift from center store sales occurring, but not Shift from center store sales occurring, but not
as severe as retailas severe as retail
• Promotional support continued to outpace Promotional support continued to outpace
supermarketssupermarkets
– Last year’s savings held steady at 32%Last year’s savings held steady at 32%
– DeCA’s temporary price reduction (TPR) dollar DeCA’s temporary price reduction (TPR) dollar
fair share index highly developed @ 136fair share index highly developed @ 136
• Billboard categories drive resultsBillboard categories drive results– 400 Power Buys400 Power Buys– 975 Primaries975 Primaries– 200 Manager’s Special200 Manager’s Special
• Overall lift percentages outstanding Overall lift percentages outstanding – Unit Lift ~ 51.5%Unit Lift ~ 51.5%– Dollar Lift ~ 25.6%Dollar Lift ~ 25.6%
• Program generated $47.4 Million in savings over Program generated $47.4 Million in savings over regular regular DeCA price DeCA price
– Added an estimated 1.5 basis points to overall DeCA Added an estimated 1.5 basis points to overall DeCA savings percentagesavings percentage
• Billboard categories drive resultsBillboard categories drive results– 400 Power Buys400 Power Buys– 975 Primaries975 Primaries– 200 Manager’s Special200 Manager’s Special
• Overall lift percentages outstanding Overall lift percentages outstanding – Unit Lift ~ 51.5%Unit Lift ~ 51.5%– Dollar Lift ~ 25.6%Dollar Lift ~ 25.6%
• Program generated $47.4 Million in savings over Program generated $47.4 Million in savings over regular regular DeCA price DeCA price
– Added an estimated 1.5 basis points to overall DeCA Added an estimated 1.5 basis points to overall DeCA savings percentagesavings percentage
• First quarter results very positive First quarter results very positive
– Sales up slightly more than FY year end goal (+$13.5M)Sales up slightly more than FY year end goal (+$13.5M)
– European sales stronger than anticipated European sales stronger than anticipated
– Future quarterly ACV contributions & calendar shifts will Future quarterly ACV contributions & calendar shifts will
tend to normalize early resultstend to normalize early results
• December sales were exceptionalDecember sales were exceptional
– Total exceeded $500 MillionTotal exceeded $500 Million
– Largest single sales month of the new millenniumLargest single sales month of the new millennium
• First quarter results very positive First quarter results very positive
– Sales up slightly more than FY year end goal (+$13.5M)Sales up slightly more than FY year end goal (+$13.5M)
– European sales stronger than anticipated European sales stronger than anticipated
– Future quarterly ACV contributions & calendar shifts will Future quarterly ACV contributions & calendar shifts will
tend to normalize early resultstend to normalize early results
• December sales were exceptionalDecember sales were exceptional
– Total exceeded $500 MillionTotal exceeded $500 Million
– Largest single sales month of the new millenniumLargest single sales month of the new millennium
Cumulative YTD Sales
Cumulative YTD Sales
-0.8%
+1.7%
+1.0%+1.0%$1401$1401 $1414$1414
FY 2006 FY 2007
FY 2007 Strategic Sales Target: $5.430B
+1.9%
+$13+$13
FY 2006 Vs. FY 2007FY 2006 Vs. FY 2007
300
350
400
450
500
OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP
$ M
illio
ns
Sales Per Transaction
Year Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep YTD
FY 2006 $58.28 $59.22 $61.15 $58.06 $58.93 $58.01 $58.71 $57.04 $58.05 $57.60 $57.74 $60.03 $59.57
FY 2007 $58.57 $60.57 $62.83 $60.69
-1.0%
# Transactions
-0.4%
Mil l
ions
-1.3%
Cumulative Transactions -0.212 -0.9%23.511 23.299
FY 2006 Vs. FY 2007FY 2006 Vs. FY 2007
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
RankRank DateDate Net SalesNet Sales EventEvent11 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
WorldwidWorldwide Casese Cases
DeCADeCA
Worldwide Worldwide DollarsDollars
WesterWesternn
RegionRegion
CasesCases
WesternWestern
RegionRegion
DollarsDollars
20052005 1,599,2831,599,283 $11,666,779$11,666,779 721,952721,952 $4,970,431$4,970,431
20062006 1,828,6311,828,631 $12,558,388$12,558,388 845,636845,636 $5,398,058$5,398,058
PercentagPercentage Changee Change
14.3%14.3% 7.6%7.6% 17.1%17.1% 8.6%8.6%
Summer ProgramSummer Program YearYear UnitsUnits DollarsDollars
20032003 1,072,8661,072,866 $ 5,391,879 $ 5,391,879
20042004 1,936,6511,936,651 $ 9,986,974 $ 9,986,974
20052005 2,886,4712,886,471 $14,064,224 $14,064,224
20062006 4,195,3794,195,379 $23,116,284 $23,116,284
Winter ProgramWinter Program
20052005 1,568,3861,568,386 $ 8,342,999 $ 8,342,999
20062006 2,053,7932,053,793 $12,151,444 $12,151,444
Summer ProgramSummer Program YearYear UnitsUnits DollarsDollars
20032003 1,072,8661,072,866 $ 5,391,879 $ 5,391,879
20042004 1,936,6511,936,651 $ 9,986,974 $ 9,986,974
20052005 2,886,4712,886,471 $14,064,224 $14,064,224
20062006 4,195,3794,195,379 $23,116,284 $23,116,284
Winter ProgramWinter Program
20052005 1,568,3861,568,386 $ 8,342,999 $ 8,342,999
20062006 2,053,7932,053,793 $12,151,444 $12,151,444
• Began this FY (includes all holidays except Veterans Began this FY (includes all holidays except Veterans
Day)Day)
• Four 7-day stores close on holidayFour 7-day stores close on holiday
• Fifty-one 6-day stores close day after holidayFifty-one 6-day stores close day after holiday
• FY 2007 impact to date (5 holidays)FY 2007 impact to date (5 holidays)
– Sales measured for 1-week periods centered on holidaySales measured for 1-week periods centered on holiday
– 55 stores that changed hours: +1.6%55 stores that changed hours: +1.6%
– Rest of DeCA: +1.4%Rest of DeCA: +1.4%
• Bottom Line: No adverse impactBottom Line: No adverse impact
• Began this FY (includes all holidays except Veterans Began this FY (includes all holidays except Veterans
Day)Day)
• Four 7-day stores close on holidayFour 7-day stores close on holiday
• Fifty-one 6-day stores close day after holidayFifty-one 6-day stores close day after holiday
• FY 2007 impact to date (5 holidays)FY 2007 impact to date (5 holidays)
– Sales measured for 1-week periods centered on holidaySales measured for 1-week periods centered on holiday
– 55 stores that changed hours: +1.6%55 stores that changed hours: +1.6%
– Rest of DeCA: +1.4%Rest of DeCA: +1.4%
• Bottom Line: No adverse impactBottom Line: No adverse impact
• What was the What was the fastestfastest growing sub-department??? growing sub-department???
– Produce?Produce?
– Deli?Deli?
– Bakery?Bakery?
– Sushi To Go?Sushi To Go?
– Hot Foods?Hot Foods?
• All perishables dollars up $5.9MAll perishables dollars up $5.9M
• Perishable percent of Agency gain equals about 41%Perishable percent of Agency gain equals about 41%
• First quarter trends leading the DeCA wayFirst quarter trends leading the DeCA way
• Produce +5.6%Produce +5.6%
• Deli +3.0%Deli +3.0%
• Bakery +5.0%Bakery +5.0%
• Sushi +51.0%Sushi +51.0%
• Hot Foods +14.3%Hot Foods +14.3%
• Meat trend still down @ -3.2%, but improvingMeat trend still down @ -3.2%, but improving
– Classification change impact disappears in MarchClassification change impact disappears in March
Perimeter DepartmentsPerimeter Departments
• New procurement areaNew procurement area
– Area 6: Sales up $530K Nov / Dec ‘06Area 6: Sales up $530K Nov / Dec ‘06
– Represents 4.6 % gain in produce salesRepresents 4.6 % gain in produce sales
• ACV contribution grew to 7.3% for two ACV contribution grew to 7.3% for two
month periodmonth period
• Produce contribution to area incremental Produce contribution to area incremental
sales = 87% sales = 87%
• New procurement areaNew procurement area
– Area 6: Sales up $530K Nov / Dec ‘06Area 6: Sales up $530K Nov / Dec ‘06
– Represents 4.6 % gain in produce salesRepresents 4.6 % gain in produce sales
• ACV contribution grew to 7.3% for two ACV contribution grew to 7.3% for two
month periodmonth period
• Produce contribution to area incremental Produce contribution to area incremental
sales = 87% sales = 87%
A New VisionA New Vision
• Introduction of tubs has shifted buying patternsIntroduction of tubs has shifted buying patterns
• MBU respondedMBU responded• Cleansed mix through category reviewCleansed mix through category review• Altered case merchandising profile to maximize Altered case merchandising profile to maximize
returnreturn
• Shift in merchandising expanded shelf space, Shift in merchandising expanded shelf space, reduced number of pegs, and improved tub utilityreduced number of pegs, and improved tub utility
• Anticipated impact on annual sales: Plus $1.5 MillionAnticipated impact on annual sales: Plus $1.5 Million
• Introduction of tubs has shifted buying patternsIntroduction of tubs has shifted buying patterns
• MBU respondedMBU responded• Cleansed mix through category reviewCleansed mix through category review• Altered case merchandising profile to maximize Altered case merchandising profile to maximize
returnreturn
• Shift in merchandising expanded shelf space, Shift in merchandising expanded shelf space, reduced number of pegs, and improved tub utilityreduced number of pegs, and improved tub utility
• Anticipated impact on annual sales: Plus $1.5 MillionAnticipated impact on annual sales: Plus $1.5 Million
ClassClass Current Current ShelvesShelves
Plus-UpPlus-Up Total Total ShelvesShelves
K1K1 22 44 66
K2K2 33 99 1212
K3 – K5K3 – K5 88 66 1414
• 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
• Early year results mirror previous successesEarly year results mirror previous successes
• 10 DeCA West events so far this fiscal year 10 DeCA West events so far this fiscal year
• Most sales conducted over three-day periodMost sales conducted over three-day period
• Total sales generated: $143,051Total sales generated: $143,051
• Percent of total store sales same period: Percent of total store sales same period: 0.37%0.37%
• Early year results mirror previous successesEarly year results mirror previous successes
• 10 DeCA West events so far this fiscal year 10 DeCA West events so far this fiscal year
• Most sales conducted over three-day periodMost sales conducted over three-day period
• Total sales generated: $143,051Total sales generated: $143,051
• Percent of total store sales same period: Percent of total store sales same period: 0.37%0.37%
• Be aggressive – use “the glass is half full” approachBe aggressive – use “the glass is half full” approach– 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 the word outUse all authorized media/methods to get the word out– Be ready for perishable ads in base newspapersBe ready for perishable ads in base newspapers
• Coordinate efforts with local exchanges to maximize Coordinate efforts with local exchanges to maximize returnreturn
• Cross-merchandise – build a “total store” plan & Cross-merchandise – build a “total store” plan & execute execute
• Be aggressive – use “the glass is half full” approachBe aggressive – use “the glass is half full” approach– 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 the word outUse all authorized media/methods to get the word out– Be ready for perishable ads in base newspapersBe ready for perishable ads in base newspapers
• Coordinate efforts with local exchanges to maximize Coordinate efforts with local exchanges to maximize returnreturn
• Cross-merchandise – build a “total store” plan & Cross-merchandise – build a “total store” plan & execute execute
• Which category is most “Which category is most “impulsiveimpulsive” ???” ???
– Carbonated Beverages?Carbonated Beverages?– Energy Bars?Energy Bars?– Salty Snacks?Salty Snacks?– Crackers?Crackers?– Snack Bars?Snack Bars?– Cookies?Cookies?– Candy?Candy?
• Which category is most “Which category is most “impulsiveimpulsive” ???” ???
– Carbonated Beverages?Carbonated Beverages?– Energy Bars?Energy Bars?– Salty Snacks?Salty Snacks?– Crackers?Crackers?– Snack Bars?Snack Bars?– Cookies?Cookies?– Candy?Candy?
• 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
• Integrated merchandising setIntegrated merchandising set– Toiletries over baby wipes builds sales synergyToiletries over baby wipes builds sales synergy– Brand blocking adds visibilityBrand blocking adds visibility
• Concept fully vetted thru virtual & in-store Concept fully vetted thru virtual & in-store teststests
• Baby wipes result:Baby wipes result:– Dollars per purchase occasion up 24%Dollars per purchase occasion up 24%– Units per purchase occasion up 25%Units per purchase occasion up 25%
• Toiletries result:Toiletries result:– Dollars per purchase occasion up 20%Dollars per purchase occasion up 20%– Units per purchase occasion up 8%Units per purchase occasion up 8%
• Potential DeCA sales growth $1.3MPotential DeCA sales growth $1.3M
• Integrated merchandising setIntegrated merchandising set– Toiletries over baby wipes builds sales synergyToiletries over baby wipes builds sales synergy– Brand blocking adds visibilityBrand blocking adds visibility
• Concept fully vetted thru virtual & in-store Concept fully vetted thru virtual & in-store teststests
• Baby wipes result:Baby wipes result:– Dollars per purchase occasion up 24%Dollars per purchase occasion up 24%– Units per purchase occasion up 25%Units per purchase occasion up 25%
• Toiletries result:Toiletries result:– Dollars per purchase occasion up 20%Dollars per purchase occasion up 20%– Units per purchase occasion up 8%Units per purchase occasion up 8%
• Potential DeCA sales growth $1.3MPotential DeCA sales growth $1.3M
• What’s the most common error on 40-15s???What’s the most common error on 40-15s???
– Invalid GTTNs?Invalid GTTNs?
– Invalid case packs?Invalid case packs?
– Erroneous product dimensions?Erroneous product dimensions?
– Erroneous tie & tier?Erroneous tie & tier?
– Erroneous availability dates?Erroneous availability dates?
• What’s the most common error on 40-15s???What’s the most common error on 40-15s???
– Invalid GTTNs?Invalid GTTNs?
– Invalid case packs?Invalid case packs?
– Erroneous product dimensions?Erroneous product dimensions?
– Erroneous tie & tier?Erroneous tie & tier?
– Erroneous availability dates?Erroneous availability dates?
• 78% of 40-15s being returned78% of 40-15s being returned
• Types of errors/omissionsTypes of errors/omissions– Missing/invalid GTTNs: 38%Missing/invalid GTTNs: 38%– Invalid case packs:Invalid case packs: 5% 5%– Erroneous product dimensions: 5%Erroneous product dimensions: 5%– Erroneous tie & tier:Erroneous tie & tier: 2% 2%
● Product availability dates:Product availability dates: 50% 50%● Refers to availability at distributor (FDS)Refers to availability at distributor (FDS)● Refers to availability for delivery (DSD)Refers to availability for delivery (DSD)
• 78% of 40-15s being returned78% of 40-15s being returned
• Types of errors/omissionsTypes of errors/omissions– Missing/invalid GTTNs: 38%Missing/invalid GTTNs: 38%– Invalid case packs:Invalid case packs: 5% 5%– Erroneous product dimensions: 5%Erroneous product dimensions: 5%– Erroneous tie & tier:Erroneous tie & tier: 2% 2%
● Product availability dates:Product availability dates: 50% 50%● Refers to availability at distributor (FDS)Refers to availability at distributor (FDS)● Refers to availability for delivery (DSD)Refers to availability for delivery (DSD)
• 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
• Twelve vendors added last monthTwelve vendors added last month
• Additional vendors to be added monthlyAdditional vendors to be added monthly
• Participant consensus positiveParticipant consensus positive
• 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
• Twelve vendors added last monthTwelve vendors added last month
• Additional vendors to be added monthlyAdditional vendors to be added monthly
• Participant consensus positiveParticipant consensus positive
• Deletion decision made (mfg or buyer driven)Deletion decision made (mfg or buyer driven)
• After 30 days, paperwork processed by File After 30 days, paperwork processed by File MaintenanceMaintenance– Item flagged for phase out in DIBSItem flagged for phase out in DIBS– Held on file for 30 days (60 days for NW box, Hawaii stores) Held on file for 30 days (60 days for NW box, Hawaii stores)
• If distributor wants to eliminate residual stock If distributor wants to eliminate residual stock remainingremaining– Broker follows procedures in NTT 05-33 (12 January 05)Broker follows procedures in NTT 05-33 (12 January 05)– DeCA receives 50% markdown for dead stockDeCA receives 50% markdown for dead stock
• After 30 days as dead stock in DIBS, item deletedAfter 30 days as dead stock in DIBS, item deleted
• Deletion decision made (mfg or buyer driven)Deletion decision made (mfg or buyer driven)
• After 30 days, paperwork processed by File After 30 days, paperwork processed by File MaintenanceMaintenance– Item flagged for phase out in DIBSItem flagged for phase out in DIBS– Held on file for 30 days (60 days for NW box, Hawaii stores) Held on file for 30 days (60 days for NW box, Hawaii stores)
• If distributor wants to eliminate residual stock If distributor wants to eliminate residual stock remainingremaining– Broker follows procedures in NTT 05-33 (12 January 05)Broker follows procedures in NTT 05-33 (12 January 05)– DeCA receives 50% markdown for dead stockDeCA receives 50% markdown for dead stock
• After 30 days as dead stock in DIBS, item deletedAfter 30 days as dead stock in DIBS, item deleted
• Hire front end buyerHire front end buyer
• Evaluate return on investmentEvaluate return on investment
• CARTS/SCO impactCARTS/SCO impact
• Queuing line solution?Queuing line solution?
• Impulse itemsImpulse items
• Hire front end buyerHire front end buyer
• Evaluate return on investmentEvaluate return on investment
• CARTS/SCO impactCARTS/SCO impact
• Queuing line solution?Queuing line solution?
• Impulse itemsImpulse items
• Internet businessInternet business– Develop/implement third party moduleDevelop/implement third party module– Expand special pack module, match mix to occasionExpand special pack module, match mix to occasion
• Emphasize growth categories Emphasize growth categories – Drive salesDrive sales– Leverage competitive strengthsLeverage competitive strengths– Focus mix changes on emerging segmentsFocus mix changes on emerging segments
• Improve promotional flexibility Improve promotional flexibility – Correlate with partners’ strategic goals to maximize Correlate with partners’ strategic goals to maximize
incremental growthincremental growth– Ensure capability to integrate new item launches and Ensure capability to integrate new item launches and
react to changing market conditionsreact to changing market conditions– Extend departmental coverage to include perimeterExtend departmental coverage to include perimeter– Assess success using pre-defined metrics Assess success using pre-defined metrics
• Internet businessInternet business– Develop/implement third party moduleDevelop/implement third party module– Expand special pack module, match mix to occasionExpand special pack module, match mix to occasion
• Emphasize growth categories Emphasize growth categories – Drive salesDrive sales– Leverage competitive strengthsLeverage competitive strengths– Focus mix changes on emerging segmentsFocus mix changes on emerging segments
• Improve promotional flexibility Improve promotional flexibility – Correlate with partners’ strategic goals to maximize Correlate with partners’ strategic goals to maximize
incremental growthincremental growth– Ensure capability to integrate new item launches and Ensure capability to integrate new item launches and
react to changing market conditionsreact to changing market conditions– Extend departmental coverage to include perimeterExtend departmental coverage to include perimeter– Assess success using pre-defined metrics Assess success using pre-defined metrics
• Evaluate product mix frequently on marginal return Evaluate product mix frequently on marginal return basisbasis
– Relate to known segment trend informationRelate to known segment trend information– Specify new item performance objectives up frontSpecify new item performance objectives up front– Periodically assess planogram sufficiency as SOPPeriodically assess planogram sufficiency as SOP
• Create a focused view of future market conditions Create a focused view of future market conditions – Collective effort thru Commissary CouncilCollective effort thru Commissary Council– Use hard/soft data and manufacturer R&D insightsUse hard/soft data and manufacturer R&D insights– Predict most likely mix of goods/services demanded Predict most likely mix of goods/services demanded
by future consumers by future consumers – Build suite of operational tactics to move forwardBuild suite of operational tactics to move forward– Establish 1/3/5 year objectives to measure movement Establish 1/3/5 year objectives to measure movement
toward end statetoward end state– Refine plans on the move as conditions/insights Refine plans on the move as conditions/insights
warrant warrant
• Evaluate product mix frequently on marginal return Evaluate product mix frequently on marginal return basisbasis
– Relate to known segment trend informationRelate to known segment trend information– Specify new item performance objectives up frontSpecify new item performance objectives up front– Periodically assess planogram sufficiency as SOPPeriodically assess planogram sufficiency as SOP
• Create a focused view of future market conditions Create a focused view of future market conditions – Collective effort thru Commissary CouncilCollective effort thru Commissary Council– Use hard/soft data and manufacturer R&D insightsUse hard/soft data and manufacturer R&D insights– Predict most likely mix of goods/services demanded Predict most likely mix of goods/services demanded
by future consumers by future consumers – Build suite of operational tactics to move forwardBuild suite of operational tactics to move forward– Establish 1/3/5 year objectives to measure movement Establish 1/3/5 year objectives to measure movement
toward end statetoward end state– Refine plans on the move as conditions/insights Refine plans on the move as conditions/insights
warrant warrant
● 32 Categories downsized: Dollar Result +.71%32 Categories downsized: Dollar Result +.71%
● 92 Categories upgraded: Dollar Result + 1.78 92 Categories upgraded: Dollar Result + 1.78 %%
• Four categories reset @ Ft Lee in January 2006Four categories reset @ Ft Lee in January 2006– 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– Gains ranged between 3.1% and 15.5% for identical mixGains ranged between 3.1% and 15.5% for identical mix– Overall change in dollars for categories involved + 7.4% Overall change in dollars for categories involved + 7.4%
• 60 day set implementation policy could build sales 60 day set implementation policy could build sales quicklyquickly– As more set results quantified, sales estimate to be As more set results quantified, sales estimate to be
developed developed
• Four categories reset @ Ft Lee in January 2006Four categories reset @ Ft Lee in January 2006– 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– Gains ranged between 3.1% and 15.5% for identical mixGains ranged between 3.1% and 15.5% for identical mix– Overall change in dollars for categories involved + 7.4% Overall change in dollars for categories involved + 7.4%
• 60 day set implementation policy could build sales 60 day set implementation policy could build sales quicklyquickly– As more set results quantified, sales estimate to be As more set results quantified, sales estimate to be
developed developed
• MBU established look-ups to include regular MBU established look-ups to include regular case price sent to store via normal file case price sent to store via normal file maintenance proceduresmaintenance procedures
• Stores must use established look-ups to get sale Stores must use established look-ups to get sale priceprice
• Scandown will be used to establish sale priceScandown will be used to establish sale price
• MBU established look-ups to include regular MBU established look-ups to include regular case price sent to store via normal file case price sent to store via normal file maintenance proceduresmaintenance procedures
• Stores must use established look-ups to get sale Stores must use established look-ups to get sale priceprice
• Scandown will be used to establish sale priceScandown will be used to establish sale price
• Treasure hunt with club packs – build shopping fun Treasure hunt with club packs – build shopping fun – Match your mix to patron facesMatch your mix to patron faces– Use as lever to enhance trade support throughout Use as lever to enhance trade support throughout
storestore
• Expansion of display-ready palletsExpansion of display-ready pallets– Big buck opportunity @ minimal labor costBig buck opportunity @ minimal labor cost– We’ll try to send visuals & details in advance We’ll try to send visuals & details in advance
electronicallyelectronically
• Streamlining promotional package sizeStreamlining promotional package size– Eliminating listing of line item extensionsEliminating listing of line item extensions
• Treasure hunt with club packs – build shopping fun Treasure hunt with club packs – build shopping fun – Match your mix to patron facesMatch your mix to patron faces– Use as lever to enhance trade support throughout Use as lever to enhance trade support throughout
storestore
• Expansion of display-ready palletsExpansion of display-ready pallets– Big buck opportunity @ minimal labor costBig buck opportunity @ minimal labor cost– We’ll try to send visuals & details in advance We’ll try to send visuals & details in advance
electronicallyelectronically
• Streamlining promotional package sizeStreamlining promotional package size– Eliminating listing of line item extensionsEliminating listing of line item extensions
• Focus on perimeterFocus on perimeter– ProduceProduce– Meat/Seafood truckload salesMeat/Seafood truckload sales
• Cross merchandisingCross merchandising– Impulse itemsImpulse items
• Club pack programClub pack program
• Case pack salesCase pack sales
• OrganicsOrganics
• ExecuteExecute
And Create Excitement!And Create Excitement!
