Small Format Academy Fresh 3

Small Format Academy

Fresh Training

Gavin Zeff

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Objectives

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• Understand

– The true importance of freshness

– The business from the customer’s viewpoint

– The available tools and resources to help

• Leave with a passion and excitement to “Win in Fresh”

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Supercenters vs. Neighborhood Markets

Similarities

• Both strive to deliver great

customer service and provide

quality product.

Differences

• Neighborhood Market is a

shopping destination for food.

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Fresh Area Overview

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1. Basic Expectations

2. Efficiencies

3. Fresh Presentation

4. Food Safety

5. Financials

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Basic Expectations

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Basic Expectations

• Provide the Freshest Product

• Within the Cleanest Store

• Execute flawlessly

– SOP’s

– Routines

• Highest Standards in Food Safety

• Deliver Excellent Customer Service

• Be fully staffed when customer traffic is at it’s peak

Everyday Standards

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Basic Expectations

• Associates scheduled according to customer

demand

• Schedules are based on 3 store-specific work

drivers:

– Customers

– Items / Production

– Visits

Proper Scheduling = Associate Activity = Freshness

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NHM Schedule Examples

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Efficiencies

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Efficiencies

• 6 R’s:

– Right Person

– Right Place

– Doing the Right Thing

– At the Right Time

– The Right Way

– With the Right Attitude

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Keys to Maximizing Productivity

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Routines Location

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Path: WIRE > Knowledge Center > Business Support > Small Format >

Routine / SOP Search

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Production Planners

• Used by Deli (Dept. 80) and Bakery (Dept. 98)

• In 2013, we threw away more than $612 million

worth of bakery and deli product in our stores.

• Uses store sales and customer traffic to predict

how much you should produce each day.

Overview

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Production Planners

• Where do I get the Production Plan Guides?

– A My Guide task will be sent to the Fresh/Consumables ZMS each day to access a

link and print the two daily reports.

• How often do I print a copy of the Production Plan Guides?

– The plan should be pulled every day to determine how much bread to bake for the

following day.

• How were the numbers for my store calculated?

– The tool uses six weeks of sales history by day for each item to determine the sales

average. Daily and seasonal % increase are added to the average sales quantity.

Question & Answer

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Fresh Presentation

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Customer Perception

“It’s not about what it looks like when the

customer buys it,

Its all about what it tastes like when they eat it!”

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Freshness Factors

• Cold chain – outside of refrigeration no more than 20

minutes.

• Lights – darkness reduces sales by an average of 30%

• Stock Rotation – First in, First Out

• Culling– are the associates finding wilting / damaged

products before customers?

• Associate Activity – Are associates stocking when

customers shop?

• Presentation – How pretty is the product?

• Inventory Levels – Are we in stock?

What Impacts Freshness?

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Your Produce Buying Habits

1. How many of you go to a store and buy all of your produce, take it

home, and eat all of it on the same day?

2. What % of the produce that you buy, ends up getting thrown away?

3. How fresh is the produce when you actually use it?

Questions:

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In-Home Expectations

5.4

5.9

6.2

6.2

6.5

8.2

9.4

10.5

12.3

In-Store ExpectationsQuality Cues

• Fresh – No bad product on floor

• Clean floors, shelves, & fixtures

• Colorful, organized, inviting

• Shallow, angled, hand-stacked tables

• Room for shopping carts

• Samples

• Visible prices

# Days of Expected Freshness

How Consumer’s Define Quality

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Consumer Purchase Decision Tree

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0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Avg Weekend & Weekday Produce Items (Wk 7-10)

Sum of Weekday Avg

Sum of Weekend Avg

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Weekend vs. Weekday Produce

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Virtual Tour Activity

Write down everything you can identify

about each of the following slides

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Salad Wall

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Blueberries

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Bell Peppers

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Produce Daily Schedule

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If unable to meet above schedule, store management should:

• Analyze and adjust staffing schedule as necessary

• Have throwaways completed by 3:00 p.m. CST

10:00 AM

SALESFLOOR READY

• Salesfloor fully culled and stocked with proper rotation

• Price changes accepted and displayed

• Remaining inventory from delivery in backroom

11:30 AM

BACKROOM READY

• All pallets broken down and organized by commodity/type

• Bananas air-stacked

• Management and department lead need to tour backroom and cooler for any

excess inventory items that require a Price/Clearance MD

1:00 PMCUSTOMER READY

• Associates on sales floor culling, condensing and, when sold down, restocking

10:00 PMTRUCK READY

• Sales floor fully culled and condensed with proper rotation

• Outs filled with remaining backroom inventory

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15 Minute Break

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Food Safety

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Financials

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Fresh Area

• Product Knowledge Guide

• Fresh Portal

• Produce In Action

• WIBI Guide – “Would I Buy It”

• SOP’s & Routines

• Inventory Tracking Report

• Fresh Area Scorecards

• Detail MU / MD Report

Fresh Area Tools and Resources

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Success in Fresh

In order to be successful in your Fresh Departments

POS

Replenishment

Sales

Cost

Inventory

Throwaways

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Closing Discussion

• Gain an understanding of the

true importance of freshness

• Understand the business from

the customer’s viewpoint

• Learn how to utilize the

available tools and resources

• Leave here with a passion and

excitement to “Win in Fresh”.

Today’s Objectives – Did you meet them?

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Questions?