chris burns director of sales “finding strength in change”
TRANSCRIPT
DeCA/ALA ConferenceMay 24, 2011
Chris BurnsDirector of Sales
“Finding Strength in Change”
Agenda
• Economy and Category Trends– Inflation– Top Categories
• Sales and Savings– Sales and Transactions, Top 40 Stores, Tobacco– Basket Size– Guard and Reserve Sales– Coupons, SNAP, WIC and Savings
• Consumer Trends– Shopping Patterns– Consumer Behaviors
• Focus and Opportunities– Goals– Initiatives and Campaigns
2
Economy &Category Trends
212
214
216
218
220
222
224
Oct
No
v
Dec
Jan
Feb
Mar
Ap
r
May
Jun
Jul
Au
g
Sep
FY 2010
FY 2011
1.44%1.74% 2.14%
1.68% 2.85%3.62%
CPI Food at Home Monthly Compare
FY 2011 vs. FY 2010• FY 2011 (Oct-Mar) average CPI Food at Home Inflation was 2.25%, it was 2.87% for CY 2011 (Jan-Mar). • CY 2011 (Jan-Dec) food at home inflation is now forecast to be 3.5% to 4.5% by USDA Economic Research Service
CPI F
ood
at H
ome
Inde
x Va
lue
Note: Data from Bureau of Labor Statistics (BLS) Consumer Price Index Food at Home. Baseline for the index is 1982-1984=100
4
Staple Item Average Price Compare April 2011 vs. April 2010
All items in both years meeting item grouping and size stipulations included – due to adds and deletes they may not be exact same UPCs in both years. Also, between years the
particular amount bought of each UPC in each group varies. Product promotions may also impact comparison.
Item Size2010 April Avg. Price
2011 April Avg. Price
Change % Change
Butter 16 oz $2.36 $2.96 $0.60 25.20% Milk 128 oz $2.81 $3.26 $0.45 15.92% Coffee Canned Regular 34.5 oz $6.04 $6.98 $0.94 15.60% Bologna - Non Pegged 16 oz $1.75 $1.98 $0.22 12.77% Honey 32 oz $4.50 $5.03 $0.53 11.80% Sugar Granulated White 64 oz $2.41 $2.59 $0.18 7.48% Rice Plain Dry 80 oz $3.79 $4.01 $0.22 5.91% Franks – Beef 16 oz $2.21 $2.31 $0.10 4.73% Spaghetti Thin 16 oz $0.94 $0.97 $0.04 3.74% Bread White 20 oz $1.64 $1.70 $0.06 3.68% Ice Bagged 160 oz $1.56 $1.60 $0.04 2.60% Vinegar 128 oz $2.28 $2.33 $0.05 2.22% Cheese Sliced 16 oz $2.86 $2.90 $0.04 1.54% Bacon 16 oz $2.41 $2.44 $0.03 1.04% Flour 80 oz $2.07 $1.94 -$0.13 -6.27% Green Beans (All types) 14.5 oz $0.82 $0.74 -$0.08 -9.81%
5
Top 20 Categories by Sales Information
Sales Rank
CategoryDeCA Sales in
$ Millions (52 Wks ending 04/30/2011)
DeCA % Sales
Change
Industry % Sales Change
DeCA Savings %
1 Cheese $106.0 6.9% 0.2% 34.6%
2 Cigarettes $105.2 -11.7% -7.8% 12.5%
3 Salted Snacks $98.5 -5.1% 1.2% 24.9%
4 Soft Drinks $87.8 -5.2% -3.2% 9.4%
5 Milk $86.5 7.2% -2.0% 26.5%
6 Fresh Bakery $84.1 -3.8% -0.8% 30.9%
7 Frozen Entrees $76.3 -2.8% 4.6% 25.0%
8 Rte Cereal $76.2 -6.7% -3.2% 19.8%
9 Dog Food $74.9 1.1% -0.9% 24.3%
10 Toilet Paper $69.0 2.2% -3.7% 15.0%
Source: Nielson RMS6
Top 20 Categories by Sales Information (cont.)
Sales Rank
CategoryDeCA Sales in $
Millions (52 Wks ending 04/30/2011)
DeCA % Sales
Change
Industry % Sales
Change
DeCA Savings %
11 Fresh Vegetable & Herb $66.7 9.5% 4.0% 24.6%
12 Coffee $65.3 8.5% 0.4% 23.2%13 Shelf Stable Juices & Drinks $64.2 -2.4% -1.6% 20.0%14 Candy $62.5 3.6% 4.1% 26.0%15 Laundry Detergent $58.9 -4.7% -5.8% 16.4%16 Lunchmeat $52.6 -0.9% -0.6% 41.8%17 Shelf Stable Vegetable $50.3 -3.0% 1.5% 29.0%18 Fresh Fruit $49.0 13.0% 6.0% 16.5%19 Crackers $46.0 1.7% 1.3% 23.6%20 Oral Hygiene $42.1 1.3% 3.2% 23.3%
Source: Nielson RMS7
Top 20 Categories by Sales Unit Information
Sales Rank
Category
DeCA Units in Millions
(52 Wks ending 04/30/2011)
DeCA % Unit Change
Industry % Unit
Change
DeCA Savings
%
1 Cheese 43.2 0.0% 0.2% 34.6%2 Cigarettes 3.0 -15.5% -7.8% 12.5%3 Salted Snacks 48.3 -2.3% 1.2% 24.9%4 Soft Drinks 43.9 -6.2% -3.2% 9.4%5 Milk 38.2 -1.6% -2.0% 26.5%6 Fresh Bakery 45.6 -1.6% -0.8% 30.9%7 Frozen Entrees 25.6 -2.5% 4.6% 25.0%8 Rte Cereal 30.6 -4.0% -3.2% 19.8%9 Dog Food 24.1 -2.2% -0.9% 24.3%
10 Toilet Paper 12.3 -1.5% -3.7% 15.0%
Source: Nielson RMS8
Top 20 Categories by Sales Unit Information (cont.)
Sales Rank
Category
DeCA Units in Millions
(52 Wks ending 04/30/2011)
DeCA % Unit Change
Industry % Unit
Change
DeCA Savings %
11 Fresh Vegetable & Herb 42.5 10.0% 4.0% 24.6%
12 Coffee 12.9 2.3% 0.4% 23.2%
13 Shelf Stable Juices & Drinks 28.4 -4.9% -1.6% 20.0%
14 Candy 36.3 3.9% 4.1% 26.0%
15 Laundry Detergent 8.2 -3.9% -5.8% 16.4%
16 Lunchmeat 24.2 0.9% -0.6% 41.8%
17 Shelf Stable Vegetable 50.4 -2.6% 1.5% 29.0%
18 Fresh Fruit 18.5 14.2% 6.0% 16.5%
19 Crackers 22.3 1.9% 1.3% 23.6%
20 Oral Hygiene 15.3 -1.0% 3.2% 23.3%
Source: Nielson RMS9
Sales & Savings
5.80
5.475.34 5.28
5.10
4.90 4.955.04 5.04
4.965.04
5.245.37 5.42
5.54
5.815.98
5.84
4.5
5
5.5
6
6.5
FY93
FY94
FY95
FY96
FY97
FY98
FY99
FY00
FY01
FY02
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
$ B
illio
ns
-3.7%
-5.6%-2.3%-1.2%
-3.9% +0.9%
+1.9% -0.0% -1.5% +1.5%
+3.9%
363385 332Stores 313 308 299 296 292 290 281 276 275
+2.5%
273
-3.3%
+0.9%
+2.2%
+5.0%
+2.9%
268 264 254260 252
-2.28%
Commissary Sales FY 1993 thru FY 2010
11
DeCA began operations on October 1, 1991 with 411 stores and had sales of $6.02 Billion its very first year (FY 1992)
115.7
110.3
104.6 103.7
97.2
92.393.3 93.5 93.9
91.592.6
94.3 94.492.48
91.4792.94
94.75 94.79
90.0
95.0
100.0
105.0
110.0
115.0
120.0
FY93
FY94
FY95
FY96
FY97
FY98
FY99
FY00
FY01
FY02
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
Mill
ions
-4.6%
-5.2%-0.8%
-6.3%
-5.1% +1.1% +0.2% +0.5%
-2.5% +1.2% +1.8%
363385 332Stores 313 308 299 296 292 290 281 276 275
+0.1%
273 268
-2.1% -1.1% +1.6%
+1.9%
264 260 254 252
+0.04%
Commissary Customers FY 1993 thru FY 2010
12
Monthly Sales Comparison
MonthFY 2009
Sales in $ Millions
FY 2010 Sales in $ Millions
% Change FY2010 vs.
FY2000Comments
FY 2011 Sales in $ Millions
% Change FY 2011 vs.
FY 2010Comments
OCT $514.5 $511.5 -0.6%
FY 2010 with deflation was
essentially down all months vs. FY 2009. The only month up was
December 2009, due to the
commissaries being closed an
extra Federal Holiday around Christmas 2008 (Dec. 26, 2008)
$510.3 -0.23%
Transaction growth,
inflation and prior year
comparisons should help growth to continue
NOV $526.6 $487.2 -7.5% $485.5 -0.35%
DEC $522.8 $527.9 1.0% $532.2 0.81%
JAN $512.9 $492.3 -4.0% $478.4 -2.82%
FEB $458.1 $450.4 -1.7% $454.8 0.98%
MAR $493.9 $483.7 -2.1% $501.7 3.71%
APR $485.7 $479.7 -1.2% $499.4 4.10%
MAY $524.5 $500.1 -4.6% TBD TBD
JUN $467.6 $460.6 -1.5% TBD TBD
JUL $491.0 $490.4 -0.1% TBD TBD
AUG $489.5 $477.0 -2.5% TBD TBD
SEP $493.9 $483.8 -2.0% TBD TBD
13
DeCA FYTD Sales and Transactions thru April 2011 vs. Prior Year
Sales FY 2011 FY 2010 $ Difference % Change
DeCA East $1,624,355,666 $1,601,989,470 $22,366,196 1.40%
DeCA Europe $301,102,238 $301,868,316 -$766,078 -0.25%
DeCA West $1,536,782,435 $1,528,836,984 $7,945,452 0.52%
DeCA Total $3,462,240,339 $3,432,694,769 $29,545,569 0.86%
Transactions FY 2011 FY 2010 # Difference % Change
DeCA East 23,684,260 23,337,100 347,160 1.49%
DeCA Europe 6,766,668 6,572,717 193,951 2.95%
DeCA West 25,162,209 24,898,605 263,604 1.06%
DeCA Total 55,613,137 54,808,422 804,715 1.47%
Note: Data as of April 10, 2011 – may change slightly as stores finalize VRGC records14
DeCA Basket Size by Fiscal Year
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011$50
$52
$54
$56
$58
$60
$62
$64
$53.02$53.90$53.62
$54.22$54.39$55.50
$56.86
$58.57
$60.54
$62.55$63.12$62.63$62.26
Note: FY 2011 Basket Size is thru April 201115
Sales Per Transaction by Region & CONUS/OCONUS thru April 2011 vs. Prior Year
Region or Area 2011 2010 $ Change % Change
DeCA East $68.58 $68.65 -$0.06 -0.09%
DeCA Europe $44.50 $45.93 -$1.43 -3.11%
DeCA West $61.08 $61.40 -$0.33 -0.53%
CONUS + AK + HI + PR $65.80 $66.00 -$0.20 -0.30%
Pacific Theatre $52.81 $52.47 $0.34 0.64%
Europe + Pacific Theatre $47.62 $48.36 -$0.74 -1.53%
DeCA Total $62.26 $62.63 -$0.37 -0.60%
16
DeCA Tobacco Sales History
$0
$50
$100
$150
$200
$250
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Fiscal Year
$ Sa
les i
n M
illio
ns
October thru March (6 Months) Full Fiscal Year
17
Coupons
Fiscal Year (thru
April)
Coupon Quantity
Coupon Dollars
Average Coupon
Amount
FY 2011 71,120,121 $64,635,188 $0.91
FY 2010 76,529,157 $66,918,238 $0.87
FY 2009 69,707,437 $57,903,634 $0.83
Note: Data fiscal years through April 3018
FY 2011 (thru April)
FY 2010 (thru April)
Change % Change
SNAP $ Sales $49,789,310 $40,529,842 $9,259,468 22.85%
SNAP Transactions 483,946 394,050 $89,896 22.81%
SNAP $ per SNAP Transaction $102.88 $102.85 $0.03 0.03%
FY 2011
(thru April)FY 2010
(thru April)Change % Change
WIC $ Sales $17,060,860 $17,277,497 -$216,637 -1.25%
WIC Transactions 1,015,090 1,040,442 -$25,352 -2.44%
WIC $ per WIC Transaction $16.81 $16.61 $0.20 1.21%
SNAP and WIC Trends (FYTD 2011 thru April 2011 vs. Prior Year)
19
Customer Savings
• Updated savings figures for commissary shoppers based on FY 2011 (thru Mar) USDA figures for retail grocery store food purchases consumed at home
• 31.5% food and nonfood ANNUAL savings:– FAMILY of FOUR saves $4,434
– FAMILY of THREE saves $3,461
– A COUPLE saves $2,801
– SINGLES saves $1,528
20Note: 2011 Price Comparison Survey results will be available October 2011
Consumer Trends
1. The consumer is in control2. Consumer connectivity is the global DNA3. Increasing polarization4. Closely monitor volatile economic
environment5. Global perspective & local expertise6. Reframe categories based on need states7. Deliver holistic value equation8. Flawless fundamental execution9. Innovation, innovation, innovation10. Sharpen targets and targeting
2011 Roadmap
22
Weekly Dollars Per Gallon – Regular Gas
$1
$2
$3
$4
$5
Source: U.S. Energy Information Administration; Weekly U.S. Regular All Formulations Retail Gasoline Prices (Dollars per Gallon)
$4.11 week ending 7/7/2008
$3.79 week ending 4/11/11
Monthly HH Impact: $0.10 increase $10.50 $0.50 increase $52.50
Monthly Household Expense Impact:
• $.10 increase: $10.50 • $.50 increase: $52.50 • $1.00 increase: $105• $2.00 increase: $210
Basis: household w/2.1 cars, driving 1,000 miles per month & getting 20 miles per gallon
23
23.3%
76.7%
3.4
22.3
3.1
4.4
18.6
10.2
3.1
23.3
3.3
4.3
17.2
10.9
Exchanges
Total Grocery
Total DrugStores
Total MassMerch w/o
Supers
TotalSupercenters
TotalWarehouse
Clubs
2009
2010
+0.74
Commissary All-Output $ Share in…
Remaining,
Commissary,
Commissary All-Output Dollar Loyalty % of Commissary All-Outlet $
DeCA shoppers spend more in commissaries than in any other specific channel
Source: Nielsen Homescan 2010 Cross Outlet Facts 24
19.8
2.5
4.6
3.6
4.0
1.8
18.3
2.6
4.9
4.2
4.5
1.4
Wal-Mart Total (US)
Target Total (US)
Sam's (US)
Kroger Grocery Corp(US)
Costco (US)
Safeway (US)
2009
2010
Loyalty for commissaries increased and Walmart gets less of patron’s dollars!
Commissary All-Output Dollar Loyalty % of Commissary All-Outlet $
Source: Nielsen Homescan 2010 Cross Outlet Facts
23.3%
76.7%
+0.74
Remaining,
Commissary,
Commissary All-Output $ Share in…
25
Commissary Wal- MartDIV1+Super
Total DrugStores
Target -Total
Sam's Exchange KrogerGrocery-
Corp
Costco Safeway
26.8
11.3
7.0 9.5 10.620.7
10.816.615.6
25.4
11.3
6.9 9.3 8.319.1
10.316.116.2
Commissary Wal-MartDIV1+Super
Total DrugStores
Target- Total Sam's Exchange KrogerGrocery-
Corp
Costco Safeway
2009 2010
Source: Nielsen Homescan 2010 Cross Outlet Facts 26
Commissary Shopper’s (1,700) Frequency and Basket Size
Commissary shoppers reduced trips to commissaries and other retailers
Frequency (Number of Trips)
Basket Size in…
46.9%
52.7%
6.0
10.5
1.5
3.7
11.2
8.7
4.1
11.8
2.0
3.7
11.8
8.0
Exchanges
Total Grocery
Total DrugStores
Total MassMerch w/o
Supers
TotalSupercenters
TotalWarehouse
Clubs2009
2010
+0.4
Source: Nielsen Homescan 2010 Cross Outlet Facts
Commissary,
Remaining,
Commissary All-Output $ Share in…
Heavy Commissary Shopper Dollar Loyalty
27
8.2%
91.9%
1.7
29.8
4.2
4.9
23.3
11.2
2.4
30.5
4.1
4.6
20.6
12.8
Exchanges
Total Grocery
Total DrugStores
Total MassMerch w/o
Supers
TotalSupercenters
TotalWarehouse
Clubs
2009
2010
-0.3
Light shoppers share is 2x in Wal-Mart compared to heavy shoppers
Commissary All-Output $ Share in…
Source: Nielsen Homescan 2010 Cross Outlet Facts
Light Commissary Shopper Dollar Loyalty
Commissary,
Remaining,
28
• We are on track! Share of Wallet is good (23.3%), customer loyalty = high, and Wal-Mart is getting less of our Patron’s dollars - Continue to offer club packs in prominent locations- Focus on destination categories (milk, bread etc.)
• Greatest cross-spending threat in Club Stores & Kroger increased loyalty- Continue to offer club packs in prominent locations
- Identify top selling items in Club stores: What attracts our customers?- Monitor pricing at competition
• Focus on Light Shoppers: Give them a reason to come back• Losing light shoppers to Club stores and other grocery- Focus on frequency drivers (perishables, pet food)
• Communicate value and benefits: Your Commissary … It’s Worth the Trip!
Opportunities from Nielsen Homescan Data
29
Focus &Opportunities
31
Sales Growth Goals/Initiatives
Stretch Goal: $6B Sales in FY 2012• Develop & monitor stretch sales goals for each category –
volume build plan• Category reviews cut back by 50%
- Category reviews at strategic right time, speed to shelf with new items and planograms (within 60 days) are key
• Promotional compliance is a must – contributes 1.7% to total savings
• Closely review category & sku indexing- 85% of items move between 2 (small store) & 4 units per day
• Implement planograms for store demographics – regional items play - delineate proper shelf allocation
32
Sales Growth Goals/Initiatives (cont.)
Stretch Goal: $6B Sales in FY 2012• Increase meat & produce department sales thru cross
merchandising efforts – perishable & perimeter departments continue to be key
• Monitor produce promotional executions – collaboration with Industry partners works very well!
• Execute promotional dollars more effectively – less 45 day pricing
• Expand Deli on-line service• Deploy Guard/Reserve pre-order/pre-pay system• Deploy internet shopping strategy
May Case Lot Sale (Photo from San Diego Commissary )
33
34
Patron Savings Goals/Initiatives
Stretch Goal: 32% Savings in FY 2012
• Develop & monitor stretch savings goals – volume build plan– All categories to include meat, produce and direct
store delivery items (soda, bread, chips, etc.)• Expand mandatory end cap program• Refine promotion program
– Review 1st of month promotions
35
Transaction Growth Goals/Initiatives
Stretch Goal: 100M Transactions in FY 2012
• Deploy Loyalty Card
• Market to singles & 4 to 6 PM customers• Capture the “mother” fulltime – baby aisle strategy
is key
• Capture 1st of the month shopper
• Collaboration with Exchanges, MWR/Services
Meat Initiatives
36
Current • Developing a core item assortment (category re-
alignment, merchandising displays, etc.)• Creating a “Go Lean With Protein” section• Expansion of Fresh Seafood Road Shows (targeting
domestic / regional products)
Future• Test yield based “Like Pricing” within zones• Employ in-store cooking demonstrations geared towards
healthier solutions
Build a Better Burger (Photo from Fort Lewis Commissary Display)
37
Produce Initiatives
• Worldwide Farmer’s Market (July 1-3)– Collaborative efforts with your Exchange– Create fun, excitement & savings– Stores to assist with planning details
• Health & Wellness Focus in Produce– Targeting Seniors = Display Period 14 (Aug 4-24)– Targeting Service Members = Display Period 19 (Oct 20-Nov 2)
• Standard Potted Plant Program through Attrition− Guaranteed sales & services
38
FYTD 2011 (thru April) Produce sales are over $275M –up 2.97% vs. prior year
Produce Initiatives (cont.)
39
Display contests create excitement for our customer & can increase your sales!Sample results for one contest:2011 Easter Plant Program+20.6% Units +38.4% DollarsCompared to Easter Plant Program 2010
Signage Re-fresh
• Cooperative Initiative With Industry– Effective June 1, 2011 for industry and 1st quarter 2012 at stores– 3 types of signs: Extra Savings, Everyday Savings, and Hot New Item –
Looking to add a 4th sign for under 20% savings– Communicate the value and savings of the benefit– New fresh, clean looking signs– Clear top that can be placed over ESL’s (no more clips or straps)– Increased durability– No more curling in refrigerated cases– Industry Standard
40
• Background:– DeCA has selected M-Dot and is working towards finalizing
an agreement• Benefits:
– Program to generate additional savings via digital coupons– Reduces fraudulent coupons– Reduces redemption errors
• Moving forward:– To participate, Industry must partner directly with M-Dot
Network directly – contact info available in NTT – Estimated program deployment: 1st Quarter FY 2012
Loyalty Card/Digital Coupons
NTT 11-45, Loyalty Card/Digital Coupon, dated February 25, 201141
Swell Allowance Program
• What is the Swell Allowance Program?– A program to reduce the number of written unsalable Vender Credit
Memo’s– Specific items are covered under the Swell Allowance Program– Direct Store Deliveries– Every company has a different Swell Allowance deducted
• How is the Swell Allowance Percent calculated?– Total dollar number of all deliveries– Total dollar number of all unsalable VCM’s written
Points of ContactMarye A. Carr [email protected] 804-734-8000 x52781Jim Keeton [email protected] 804-734-8000 x48935
42
Future Sales Campaigns
• Family Fun Fitness Festival (mid Apr – mid Jun)• World Wide Farmers Market (July 4th weekend)• Back to School Bonanza (Jul/Aug Promo)• Your Family is our Family (Aug/Sep Promo –
ongoing)• Gift & Loyalty Card Programs (Summer & Fall)• It’s Your Choice – Make It Healthy! (Sep/Oct
Promo – ongoing)• Commissary’s 20th Anniversary (Oct-Sep)
43
Collaborative Efforts
• Joint/Cross Marketing (AAFES)– “Free” print advertising & in-store radio spots
• Joint Sales Events– Expansion of DeCA’s Case Lot Sale in May 2010 into the Family
Fun Fitness Festival– Guard/Reserve On-Site activities
• Communication of the Benefit– Cross promotions, merchandising, couponing, and coordination
of promotion themes & dates• Shared Distribution (Europe & Guam)• Food for Thought Program (DoD Schools in Germany)
44
• Sallie Cauthers, Marketing & Mass Communication Specialist, recently joined the Sales Directorate Team– Main focus is to work with our industry partners and the field to
drive promotional programs• Tested and deployed the Deli-Online ordering system at the
Fort Lee Commissary – testing will go through 30 June 2011• Guard/Reserve Pre-Order/Pre-pay - Tested & passed final
iteration – Will deploy once system security requirements have been met -
goal to test live by end of FY
On-Going Initiatives
45
• Automation of Container Redemption Value (CRV) Receiving, Reporting – Effective May 16th– FDS and DSD Rollups will display and print CRV totals for each billing period– Will create efficiencies at the stores and improve reporting accuracy, thereby
decreasing costly CRV related vendor disputes– The commissaries affected by this release are only those subject to container
deposit laws in Hawaii, California, Connecticut, Maine, Massachusetts, Michigan, and New York
• Vendor Promotion Price Locking (VPPL)– Acts as a virtual checkpoint between DeCA’s Electronic Data Interchange (EDI)
pricing system, the master catalog, and the promotional management system, improving pricing integrity and decreasing bill paying discrepancies
– July/August timeframe to begin seeing EDI 824 (Application Advice Transaction Set) – communicates promotional price compliance
46
On-Going Initiatives (cont.)
• Identify:– Give advance notice of heavily
couponed items– National advertising– Spot BOH discrepancies– Reduce mis-picks and shortages– Follow-up with vendor stockers
• Warehouse Management– A fully loaded warehouse does not
equate to fully loaded shelves– Don’t over-commit to promotions
• Management Support– Coordinate promotional display
management between Grocery & CAOS
47
• New Items, Phase Outs, NIS, Overwrites, Excess Stock– Should be CAO-driven process,
and provides an excellent opportunity to rethink allocation (beyond the item to the left & right of it)
– The customer is the ultimate authority on allocation
• BOH Management– Salvage is part of BOH until
processed– CAO does not have BOH visibility
for all items (e.g., shippers, pallet modules, case lot items)
CAO Best Practices
• Sales: Continue to Help the Stores Drive Sales– THANKS for the shopper insights– Vendor stocking & collaborating with the Zone Manager and
Store Director are keys!– Ideas presented to the MBU for incremental sales are always
welcome for review
• Savings: Continue to “Sharpen Your Pencil” With Best Pricing– Commissaries need to be the only stop for our patrons!
• Patron Awareness: Continue to Assist in Getting the Word Out to Authorized Patrons– This benefit is relevant!
What Can Industry Do?
48
THANK YOU FOR ALL YOU DO TO SUPPORT OUR
VALUED PATRONS & THIS BENEFIT!!