growing sales - session 11pt27q1e3zyn6k1vc1v26ow1-wpengine.netdna-ssl.com/...jun 04, 2020 · dav...

Virtual Roundtable

June 4, 2020

Growing Sales - Session 1

Growing Sales – Session 1

ALA DISCLAIMER

"ALA operates under a policy of strict compliance with federal and state antitrust laws. Violations of those laws can pose serious consequences for ALA and its officers, directors, staff, and members. Be sure to read the ALA

Antitrust Compliance Statement contained in your board books and let me know if you ever have any questions or

concerns about these issues."

ALA COMMISSARY COUNCIL, ROUNDTABLE COMMITTEE CHAIR

Stephanie Supplee, Coastal Pacific Food Distributors

Virtual RoundtableGrowing Sales – Session 1

June 4, 2020

Defense Commissary Agency

Rear Admiral(ret) Robert J. Bianchi

Special Assistant to ASD(M&RA) for Commissary Operations

ALA Virtual EventJune 4, 2020

Your Commissary … It’s Worth the Trip!

• Coronavirus Update

• Market-Based Savings

• Sales

• DAV Expanded Patronage

• Customer Surveys

• Way Forward

5

Topics


• Activated Emergency Operations Center February 27, 2020

• On March 25, 2020, Acting ASD(M&RA) designated all DoD commissaries and operational support facilities as mission critical

• DeCA focused on the highest standards of DoD health protection in our stores and sustained critical commissary operations worldwideo Precautionary measures established and remain in effect at all commissaries

• Working jointly with installation leadership and public health personnel to implement risk reduction practices such as designated store hours and limiting the number of patrons in the store

• Supporting installation “Agent Shopping” programs & seeing increased usage, items ordered, items filled and basket size at our 5 current CLICK2GO locations

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COVID-19 Response


• DeCA continues to monitor the process and will make every effort to ensure our military members and their families have access to groceries and other necessities

• Supply chain for overseas is prioritized - increased airlifts to overseas locations to sustain sufficient in-stock rates

• DeCA is focused on ordering and inventory management to ensure an adequate supply of products are available for shoppers

• DeCA has placed limits on patron purchases of fresh beef, pork and poultry on CONUS, Hawaii, Alaska and Puerto Rico to ensure product availability for all authorized shoppers

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COVID-19 – Response to Product Demand


Notes:• Calculation includes applicable taxes in commercial grocery

store prices and surcharge in commissary prices• Approximately 25% of U.S. commissaries are shopped each

quarter

(2016 Baseline Global Savings: 23.7%)

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Market-Based Savings


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FY20 Sales Performance


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• In March, total sales were nearly $500M increasing 30 percent over the same time prior year while transactions exceeded 7M, increasing nearly 8 percent over the same time prior year--units increased over 22 percent

• 3 Agency “Top 15” historical sales days in March: o March 13: $34.5M (#1 best sales day ever)o March 14: $28.4M (#7 best sales day ever)o March 12: $26.9M (#11 best sales day ever)

• Sales and transactions for April 2020 were up 8 percent and down 21 percent, respectively, compared to April 2019. The decrease in transactions is mirroring what is occurring outside the installation gates as patrons are shopping less often but purchasing more

• Average basket size remained strong during April 2020, over same time period prior year o Sales: $76.54, increase of 36.9 percent o Units: 25.7, increase of 27.5 percent

• Optimistically projecting a sales increase for this FY versus FY19 – would be the first increase versus previous year since 2012

COVID-19 Sales Performance


• Commissaries welcomed disabled veterans and other newly authorized patrons on January 1, 2020

• Our goal and focus is to ensure DeCA makes our DAV community loyal customers and happy patrons

Top 10 Expanded Patronage Commissaries

Sales($K)

PEARL HARBORMARCH ARBMCCLELLANOROTESAN DIEGO NBANDERSEN AFBFORT MEADEANDREWS AFBSCHOFIELD BARRACKSJACKSONVILLE NAS

$883.0$480.1$465.7$380.1$368.8$361.4$332.0$285.1$278.5$276.7

Top 10 Expanded Patronage Commissaries

Transactions

PEARL HARBORMARCH ARBMCCLELLANSAN DIEGO NBFORT MEADEMACDILL AFBPENSACOLA NASFORT BUCHANANANDREWS AFBJACKSONVILLE NAS

10,0675,6935,6574,1903,9643,7333,5853,3023,2883,256

Sales TransactionsAverage Basket

Size

$20.62M 273,742 $83.30

Expanded Patronage Indicators Summary All Eligible Stores Jan – Apr 2020

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DAV Expanded Patronage Snapshot


$68.17$71.73

$79.48$83.30

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

JAN 2020 FEB 2020 MAR 2020 APR 2020

Bas

ket

Size

$DAV Monthly Avg Basket Size $

Source: DeCA Retail Sales

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Your Commissary … It’s Worth the Trip! Yes40%

No60% 12,280

Response Count

Commissary Store Brand (CSB) Purchase

Yes58%

No42% 12,699

Response Count

Deliberate Trip to Shop Commissary

85.2 87 88 85.6 89.7 87.1

0

25

50

75

100

DeCA Scorecard

Merchandise StoreAtmosphere

Service Price Checkout RecommendAs of May 17, 2020

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Way Forward

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• DeCA will continue to lean forward to care for our service members worldwide during the COVID-19 pandemic

• DeCA’s priority is to ensure that our CONUS & OCONUS supply chain is not interrupted and that we continue to meet the demands of our valued patrons

• We appreciate your support and need your continued emphasis to ensure that the military channel is prioritized


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DIRECTOR OF GOVERNMENT AFFAIRS

Steve Rosetti

ALA Public Policy Advocacy

Virtual Roundtable

June 4, 2020


Pandemic Response• System shock

• Rapid virus spread and evolution of resale

• Pandemic Industrial Policy Supply Chain Task Force

• Commissary and exchange industry aid

• Extraordinary measures by resale team

• PPE, test kits, vaccines

• Exchange and MWR NAF losses

• CISA/Mission Critical

• Base restrictions

• Defense leadership briefing

• Patron evolution & Blue Star Family Pain Points Survey


DC Update - Structure and Policy

• Congressional direction on resale organization

• Community Reform Task Force

• Consolidation & Governance structure

• Government Accountability Office Review

• FY 2021 Defense Bill outlook

ALA CHAIRMAN

Bill Doyle, Specialized Marketing International

ALA Chairman Remarks

Virtual Roundtable

June 4, 2020


ALA Chairman Remarks• Today – A Different Platform | A Broader Reach | Connecting

Members & Our Retail Partners Where They Work

• Committing To A Process & Partnership For Continuous Improvement | Build Forward From Here

• Bring 100% | Give 100% | Contentment Stinks – Stay Focused

• Retail – Report Card Everyday | Opportunities Everyday | New Customers Everyday


Rogers Campbell

Executive Director, Store Operations



Chris Burns

Executive Director, Sales, Marketing & Logistics



Logistics Randy Eller, Director, Logistics



• Health & Safety Initiatives

• Fill Rates (March – May 2020)

– Challenges

– CONUS

– Europe

– Pacific

– CMPP

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Sales & Marketing Tracie Russ, Director, SalesHector Granado, Director, Marketing



• NTT 20-60: Use of H Code for Temporary Hold Items

• Transition began May 21

• Using Stock List Code H to identify temporarily discontinued items

• H code will hold same numeric indicator (K3 = H3)

• Items will remain in active, allocated status; stores minimize shelf space and spread on adjacent items, adjust ordering parameters

• POGs will not be updated / SOWb receives live feed updates for item RSL data field; H code will be visible on POGs

• Request Industry updates on management of these items

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• NTT 20-41: Category Management in person meetings with

Industry; meetings conducted electronically

• NTT 20-42: Store Level Special Events

• NTT 20-46: Major Category Reset Activity, minor activity

considered case by case

• NTT 20-62: In-store Product Demonstrations

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• DeCA NTT 20-46 suspended category reset activity until further notice

• Minor changes / resets have continued on case by case basis

• Category Managers have initiated reviews on a few categories up to point of reset

• Category review schedule has been interrupted by supply disruptions

• Working updated review schedule – Industry input (with category teams) appreciated

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• Date is TBD to resume scheduled category reset activity

– Expect gradual return when announced

• When resumed – Industry participation in category reset activity will be needed and appreciated

• POG integrity has been compromised due to supply interruptions in many categories

• Best source for category POGs: Store

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• DeCA NTT 20-49 suspended off-shelf display program activity until further notice

• Quantities committed for shippers, pallets, and one-time-buys through DP13 are being ordered by stores

• Category Managers have accepted additional shippers, pallets, and one-time-buys to support additional demand for items

• Regular two-week display programs not published during suspension

• Club Pack, Seasonal, Holiday programs continued on schedule

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• DeCA NTT 20-59: Display Program Activity to Resume with DP22

• May 14 resumed scheduled planning for off-shelf display activity

• Bridging the gap: Display Periods 14-21

– Category teams reviewing previously submitted promotions, also accepting shippers, pallets, one-time-buys, club packs

– If accepted, category teams will request quantities to support promotion

– Quantities will be reviewed by category teams and mandated through Store Operations to stores

– Concerns: product availability, ad hoc process

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Sign Program NTT 20-44

• Industry should start using the Save More promotional signs

• Instore printing signs will be issued to the stores late this summer

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•DeCA will start pushing promotional pricing to industry for promotional signs, testing has started with a possible release date of fall this year

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ALA COMMISSARY COUNCIL, ROUNDTABLE COMMITTEE CHAIR

Stephanie Supplee, Coastal Pacific Food Distributors

Virtual RoundtableGrowing Sales – Session 1

June 4, 2020

Virtual Roundtable

June 4, 2020

Growing Sales - Session 1

growing sales - session 11pt27q1e3zyn6k1vc1v26ow1-wpengine.netdna-ssl.com/...jun 04, 2020 · dav...

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