RETAILERS STRATEGIES (THE LITTLE GUY’S

STRATEGY)

FOR SUCCEEDING IN

TODAY’S ECONOMY

August 5, 2009Dana Andresen

Director of Operationswww.chuckanddons.com

A Bit of HistoryChuck & Don’s 2000

2000 versus 2009 General Store locations Corporate staff Employees Sales Growth Profit

Under ConstructionGetting to 2009…

Customer

Service

Identity Staffing

Standards

Growth / Expansion

Activity 2001 Opened Forest Lake moved store and

corporate office from Stillwater to Mahtomedi 2002 Closed Northfield 2003 Re-opened in Dundas, downsized Eagan 2004 Opened Lakeville 2005 Opened Bloomington (joined MSCA) 2006 Moved/built new corporate office/store in

Mahtomedi 2007 Opened Plymouth 2008 No new stores 2009 Opened St. Paul and Wayzata; relocated

Eagan

Success…

What is Success?Our success in today’s economic

climate… Simultaneously opened two new locations in

March 2009 and relocated our oldest location (Eagan) in early April

Same store growth YTD is at 21.7% Net income to budget YTD is at 15% Mature stores with high growth % Reinvesting in stores/infrastructure/technology Looking to relocate a site in 2009 Looking for 1-2 new sites for 2010

Strategies

Continue to focus on basics… Product

Focus on top sellers Keep assortment fresh – listen to customers Get rid of the ‘dogs’

Place Service focus Attention to detail Operations Value

StrategiesContinue to focus on basics… Price

Stay in line with mfg. price increases Continue programs Capitalize on vendor relationships

Promotion Advertising/marketing program Partnerships Community involvement Branding

What? Who? How? Why? Do the right thing… For the customer… Focus on the basics and standards… Loyalty brings…repeat AND new

business Chuck’s (Pet) Bucks Loyalty program drives

our business because our customers see VALUE through their shopping experience

Customer Service The Focus Written Standards Accountability to those standards

Survey program Shopper program Action Recognition of performance

Loyalty program Recovery Training/education team

members and customers

Challenges Competition

Price Availability

General business climate Vendors Distributors

More exposure…more scrutiny

Site Selection Criteria 3,500 to 4,500 square feet Leased space High visibility storefront, pylon/monument signage,

commute side traffic Grocery anchor

Byerly’s, Lunds, Cub, Kowalski’s Restaurants, product retailers, related but not

competitor business, coffee shops High traffic volume shopping center Urban or suburban Big box pet supply competitors outside a minimum 5

mile range Receiving access with ramp and capacity to receive

pallets into stock area

Locations/Growth Plans

2009 Relocate

Northfield location• Identify Blaine site

Future potential Minnetonka Minneapolis Saint Paul Woodbury Maple Grove Cambridge

Do the right thing! Have Fun! Give back!2007 Customer Thank You Gift

www.chuckanddons.com