mr. delbert myrick director of operations deca east director of operations deca east

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


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

ACNielsen

Bob: preference to look at Food & Bev or Total Store?

Roughly 40% of Military Shop Military Monthly for Food, HBC or GM - drives lower share of wallet


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



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



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


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


$ 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


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


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


33 11/18/200611/18/2006 $25,255,742.11 $25,255,742.11 ThanksgivingThanksgiving





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


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!

mr. delbert myrick director of operations deca east director of operations deca east

Documents

military shop military

ytd fy

military outlets

military households

commissary sales total

commissary sales deca

ytd sales target

cumulative ytd sales