1 / 21

DeCA West

Sales Update. DeCA West. Ms. Michelle Frost Chief, Semi-Perishables. End of Cheap Food?. Healthcare costs Oil price surge Weak dollar Weather Drought in Australia Flooding in Argentina Demand China beef consumption has doubled Impact of ethanol. Sustainability?.

ramya
Download Presentation

DeCA West

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Sales Update DeCA West Ms. Michelle Frost Chief, Semi-Perishables

  2. End of Cheap Food? • Healthcare costs • Oil price surge • Weak dollar • Weather • Drought in Australia • Flooding in Argentina • Demand • China beef consumption has doubled • Impact of ethanol

  3. Sustainability? Corn 2.5 lbs corn = 1lb poultry It takes 800 gallons of water per person per day to produce daily food intake It takes 450 lbs of corn to produce enough ethanol to fill an SUV gas tank 7 lbs corn = 1lb beef 1,500 gls water = 1lb beef Water

  4. Consumer Impact • FMI Trend Reports • 71% increase in home cooking frequency • 67% buying fewer luxury items • 60% buying more store brands • Value will be focus • Fewer trips to secondary stores • Fewer trips = STOCK UP

  5. Retail Shift • New outlets • Supercenters, 70% • Dollar stores, 64% • Losing ground • Drug channel, -3% • Grocery, -6%. • Same store dollar sales declined as well

  6. Defining Trends • Four trends will shape the retail operating environment the remainder of this decade: • Aging population • Increasing ethnic diversity • Need for speed • Health & wellness concerns • Opportunities products, alterations to the store (lighting, store set) accommodate older shoppers’ limitations

  7. The Three Ps • Manufacturers trying to keep pace with new items • Portability • Preparation simplicity • Preparation time • New product concepts must respond to speed-of-life issues without sacrificing flavor

  8. Fastest-Growing Categories >$1 Billion • Drinkable yogurt • Fresh fish/shellfish & seafood • Alcoholic cider • Ready-to-eat salads • Baby formula • Dairy-based drinks • Source: executive news report from nielsen global services, december 2006

  9. New Team Members • Brad McMinn – Chief, Perishable • Barbara Merriweather – Category Manager, Local/DSD • Bridegt Bennett – HQ Produce Specialist

  10. Promotions • Total items published reduced 21% • Dollar Sales Per SKU + 5% • Units Per SKU + 7% • Increase Pallets/Shippers • Incorporate Club Packs • Averaging $6.8 million per month • $2 million per month increase • Seasonal Programs + $9 million

  11. Front End Racks • Fixtures have been selected • Currently • Developing stock assortment • Surveying stores select type of fixtures • 60 days to manufacture equipment • Phased implementation - September

  12. Check It Out • Shoppers choosing self-checkout: • Wal-Mart (45%) • Kroger (43%) • Target (40%) • Publix (28%) • Costco (26%) • Whole Foods (14%) • Safeway (13%) • Meijer (11%) • Albertson’s (11%).

  13. Space Allocation – Bragg North • Today little variance in plan-o-grams • Based on historic sales data • Sets based on class of store • No factor for lost sales or promoted volume • Reduce space in declining categories • Fewer items = IN STOCK • Reconfigure flow to maximize allocation efficiencies

  14. Organic Options • Organic food sales represent just 2.5% • Organics grew 30% in 2007 • Grown roughly 20% per year for past five years • Grocery annual sales grew 3–5% overall • Organic food sales predicted to double as early as 2009 • Organic offerings in personal care, nutritional supplements, household cleaners, and pet food

  15. Focused on “Green” Efforts • Sales of Bar Coded Organic Products • # Items up 17% in last 12 months (June-May) – from 540 to 635 • Sales for June-May period up 35% over prior year to 34.4 m • Environmental Initiatives Reusable grocery bags sold starting 10/30/2007 • 1,252,864 sold thru 06/23/2008 • Compact fluorescent light (CFL) bulbs, FY 08 Goal: 1 Million • 878,105 sold FYTD – thru 06/23/2008

  16. Expand Benefit - Access G/R • Developing staff office for support • Serve as single POC for store support • Logistics • Communication • Transportation • Equipment • Develop “Virtual Solution” • Internet ordering – on site payment • Develop total solution to include payment • Expand – self fulfillment

  17. Retail Perspective • Consumers are plugged into technology • Logging on to plan trips search for restaurants and socialize • Top 15 web domains • eBay.com, 1st • Amazon.com, 5th • Target.com, 12th • Wal-Mart.com, 15th

  18. Thank You! Ms. Michelle Frost Chief, Semi-Perishables

More Related