Presentation is loading. Please wait.

Presentation is loading. Please wait.

Chris Burns Director of Sales “Finding Strength in Change”

Similar presentations


Presentation on theme: "Chris Burns Director of Sales “Finding Strength in Change”"— Presentation transcript:

1 Chris Burns Director of Sales “Finding Strength in Change”

2 • 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

3

4 1.44% 1.74%2.14% 1.68%2.85% 3.62% • 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 Food at Home Index Value Note: Data from Bureau of Labor Statistics (BLS) Consumer Price Index Food at Home. Baseline for the index is =100 4

5 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. ItemSize 2010 April Avg. Price 2011 April Avg. Price Change% Change Butter16 oz$2.36$2.96$ % Milk128 oz$2.81$3.26$ % Coffee Canned Regular34.5 oz$6.04$6.98$ % Bologna - Non Pegged16 oz$1.75$1.98$ % Honey32 oz$4.50$5.03$ % Sugar Granulated White64 oz$2.41$2.59$ % Rice Plain Dry80 oz$3.79$4.01$ % Franks – Beef16 oz$2.21$2.31$ % Spaghetti Thin16 oz$0.94$0.97$ % Bread White20 oz$1.64$1.70$ % Ice Bagged160 oz$1.56$1.60$ % Vinegar128 oz$2.28$2.33$ % Cheese Sliced16 oz$2.86$2.90$ % Bacon16 oz$2.41$2.44$ % Flour80 oz$2.07$1.94-$ % Green Beans (All types)14.5 oz$0.82$0.74-$ % 5

6 Sales Rank Category DeCA Sales in $ Millions (52 Wks ending 04/30/2011) DeCA % Sales Change Industry % Sales Change DeCA Savings % 1Cheese$ %0.2%34.6% 2Cigarettes$ %-7.8%12.5% 3Salted Snacks$ %1.2%24.9% 4Soft Drinks$ %-3.2%9.4% 5Milk$ %-2.0%26.5% 6Fresh Bakery$ %-0.8%30.9% 7Frozen Entrees$ %4.6%25.0% 8Rte Cereal$ %-3.2%19.8% 9Dog Food$ %-0.9%24.3% 10Toilet Paper$ %-3.7%15.0% Source: Nielson RMS 6

7 Sales Rank Category DeCA Sales in $ Millions (52 Wks ending 04/30/2011) DeCA % Sales Change Industry % Sales Change DeCA Savings % 11Fresh Vegetable & Herb$ %4.0%24.6% 12Coffee$ %0.4%23.2% 13Shelf Stable Juices & Drinks$ %-1.6%20.0% 14Candy$ %4.1%26.0% 15Laundry Detergent$ %-5.8%16.4% 16Lunchmeat$ %-0.6%41.8% 17Shelf Stable Vegetable$ %1.5%29.0% 18Fresh Fruit$ %6.0%16.5% 19Crackers$ %1.3%23.6% 20Oral Hygiene$ %3.2%23.3% Source: Nielson RMS 7

8 Sales Rank Category DeCA Units in Millions (52 Wks ending 04/30/2011) DeCA % Unit Change Industry % Unit Change DeCA Savings % 1Cheese %0.2%34.6% 2Cigarettes %-7.8%12.5% 3Salted Snacks %1.2%24.9% 4Soft Drinks %-3.2%9.4% 5Milk %-2.0%26.5% 6Fresh Bakery %-0.8%30.9% 7Frozen Entrees %4.6%25.0% 8Rte Cereal %-3.2%19.8% 9Dog Food %-0.9%24.3% 10Toilet Paper %-3.7%15.0% Source: Nielson RMS 8

9 Sales Rank Category DeCA Units in Millions (52 Wks ending 04/30/2011) DeCA % Unit Change Industry % Unit Change DeCA Savings % 11Fresh Vegetable & Herb %4.0%24.6% 12Coffee %0.4%23.2% 13Shelf Stable Juices & Drinks %-1.6%20.0% 14Candy %4.1%26.0% 15Laundry Detergent %-5.8%16.4% 16Lunchmeat %-0.6%41.8% 17Shelf Stable Vegetable %1.5%29.0% 18Fresh Fruit %6.0%16.5% 19Crackers %1.3%23.6% 20Oral Hygiene %3.2%23.3% Source: Nielson RMS 9

10

11 -3.7% -5.6% -2.3% -1.2% -3.9% +0.9% +1.9% -0.0% -1.5% +1.5% +3.9% Stores % % +0.9% +2.2% +5.0% +2.9% % 11 DeCA began operations on October 1, 1991 with 411 stores and had sales of $6.02 Billion its very first year (FY 1992)

12 -4.6% -5.2% -0.8% -6.3% -5.1% +1.1% +0.2% +0.5% -2.5% +1.2% +1.8% Stores % % -1.1% +1.6% +1.9% % 12

13 Month FY 2009 Sales in $ Millions FY 2010 Sales in $ Millions % Change FY2010 vs. FY2000 Comments FY 2011 Sales in $ Millions % Change FY 2011 vs. FY 2010 Comments OCT $514.5$ % FY 2010 with deflation was essentially down all months vs. FY The only month up was December 2009, due to the commissaries being closed an extra Federal Holiday around Christmas 2008 (Dec. 26, 2008) $ % Transaction growth, inflation and prior year comparisons should help growth to continue NOV $526.6$ % $ % DEC $522.8$ % $ % JAN $512.9$ % $ % FEB $458.1$ % $ % MAR $493.9$ % $ % APR $485.7$ % $ % MAY $524.5$ %TBD JUN $467.6$ % TBD JUL $491.0$ % TBD AUG $489.5$ % TBD SEP $493.9$ % TBD 13

14 SalesFY 2011FY 2010$ Difference% Change DeCA East$1,624,355,666$1,601,989,470$22,366, % DeCA Europe$301,102,238$301,868,316-$766, % DeCA West$1,536,782,435$1,528,836,984$7,945, % DeCA Total$3,462,240,339$3,432,694,769$29,545, % TransactionsFY 2011FY 2010# Difference% Change DeCA East 23,684,260 23,337, , % DeCA Europe 6,766,668 6,572, , % DeCA West 25,162,209 24,898, , % DeCA Total 55,613,137 54,808, , % Note: Data as of April 10, 2011 – may change slightly as stores finalize VRGC records 14

15 Note: FY 2011 Basket Size is thru April

16 Region or Area $ Change% Change DeCA East$68.58$68.65-$ % DeCA Europe$44.50$45.93-$ % DeCA West$61.08$61.40-$ % CONUS + AK + HI + PR$65.80$66.00-$ % Pacific Theatre$52.81$52.47$ % Europe + Pacific Theatre$47.62$48.36-$ % DeCA Total$62.26$62.63-$ % 16

17 17

18 Fiscal Year (thru April) Coupon Quantity Coupon Dollars Average Coupon Amount FY ,120,121$64,635,188$0.91 FY ,529,157$66,918,238$0.87 FY ,707,437$57,903,634$0.83 Note: Data fiscal years through April 30 18

19 FY 2011 (thru April) FY 2010 (thru April) Change% Change SNAP $ Sales$49,789,310$40,529,842$9,259, % SNAP Transactions483,946394,050$89, % SNAP $ per SNAP Transaction$102.88$102.85$ % FY 2011 (thru April) FY 2010 (thru April) Change% Change WIC $ Sales$17,060,860$17,277,497-$216, % WIC Transactions1,015,0901,040,442-$25, % WIC $ per WIC Transaction$16.81$16.61$ % 19

20 • 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, Note: 2011 Price Comparison Survey results will be available October 2011

21

22 1.The consumer is in control 2.Consumer connectivity is the global DNA 3.Increasing polarization 4.Closely monitor volatile economic environment 5.Global perspective & local expertise 6.Reframe categories based on need states 7.Deliver holistic value equation 8.Flawless fundamental execution 9.Innovation, innovation, innovation 10.Sharpen targets and targeting 22

23 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

24 +0.74 Commissary All-Output $ Share in… Remaining, Commissary, DeCA shoppers spend more in commissaries than in any other specific channel Source: Nielsen Homescan 2010 Cross Outlet Facts 24

25 Loyalty for commissaries increased and Walmart gets less of patron’s dollars! Source: Nielsen Homescan 2010 Cross Outlet Facts Remaining, Commissary, Commissary All-Output $ Share in… 25

26 Source: Nielsen Homescan 2010 Cross Outlet Facts 26 Commissary shoppers reduced trips to commissaries and other retailers Frequency (Number of Trips) Basket Size in…

27 +0.4 Source: Nielsen Homescan 2010 Cross Outlet Facts Commissary, Remaining, Commissary All-Output $ Share in… 27

28 -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 Commissary, Remaining, 28

29 •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! 29

30

31 31 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 32 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

33 33

34 34 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 1 st of month promotions

35 35 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 1 st of the month shopper • Collaboration with Exchanges, MWR/Services

36 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

37 37

38 • 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

39 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% Dollars Compared to Easter Plant Program 2010

40 • Cooperative Initiative With Industry –Effective June 1, 2011 for industry and 1 st quarter 2012 at stores –3 types of signs: Extra Savings, Everyday Savings, and Hot New Item – Looking to add a 4 th 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

41 •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 NTT 11-45, Loyalty Card/Digital Coupon, dated February 25,

42 • 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 Contact Marye A. Carr x52781 Jim Keeton x

43 • Family Fun Fitness Festival (mid Apr – mid Jun) • World Wide Farmers Market (July 4 th 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 20 th Anniversary (Oct-Sep) 43

44 • 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

45 • 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 45

46 • 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

47 • 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)

48 • 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! 48

49


Download ppt "Chris Burns Director of Sales “Finding Strength in Change”"

Similar presentations


Ads by Google