10927 DE LightBulbs Catalog · light bulb exp format $702.75 2 11/11/2016 1/7/2017 6 months light bulb super format $1,701.06 light bulb core format $2,130.57 light bulb conv format

SPRING 2017

Light Bulb Evolution

ENRICH THE ASSORTMENT

Incentives

Buyback Credit OR 50% off

your Bulletin Order

FREE POP, Signage and Displays

10927_DE_LightBulbs_Catalog.indd 1 12/13/16 10:25 AM

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LIGHTING OVERVIEW

2%

0

2013 YOY Sales 2015 YOY Sales

4%

6%

8%

10%

12%

14%

16%

18%

+9.7%

+17.0%

+6.1%

+11.5%

IMPLEMENTED+

NON-IMPLEMENTED++

Incandescent 74%($33,141,269)

LED 26%

($11,569,088)Incandescent

51%($31,581,354)

LED 49%

($30,891,485)

2015 Ace Sales $2015 Ace Sales Units 2016 Ace Sales $ 2016 Ace Sales Units

Incandescent 86%(5,608,628)

LED 14%

(941,429)

Incandescent 69%(4,987.869)

LED 31%

(2,252,760)

2013

Light Bulb

Level 3

2015

Light Bulb

Level 3

+Implemented stores include stores that completed both 2013 and 2015 Level 3 Light Bulb Resets.++Non-Implemented stores include stores that have not completed either reset.

WHY THIS CATEGORY IS IMPORTANT:

• Light bulbs are #1 in Retail Sales dollars and Gross Profit dollars across Ace stores. - LED light bulbs are showing a growth in sales dollars of +167% and an even higher

growth of +193% in Gross Profit dollars over the previous year

• Stores that implemented all Light Bulb changes have seen on average a $20,244 increase in Sales and $4,242 increase in Gross Profit since 2013

• These stores account for 65% of total Light Bulb retail GP$ growth over the past 3 years and 90% of GP$ growth since the last Light Bulb Level 3

HOW DISCOVERY GROWS YOUR BUSINESS:

WHA


3

LIGHTING OVERVIEW

CREDIT UP TO

YOUR BULLETIN

ORDER AMOUNT**

BUYBACKBUYBACKOR

50% OFF50% OFFYOUR BULLETIN

ORDER**

Plus Free POP & Sign Kit, Retrofit Kit Display and 6 months dating

*Must have completed the 2015 Level 3 Light Bulb Reset or have 80% Discovery Acceptance in Light Bulbs to qualify.**Buyback credit or 50% off limited to one bulletin based on store format for value of product only.

WHAT’S NEW TO DISCOVERY:

• Simplified merchandising strategy by application allows the customer to easily find the right bulb for their needs.

• New Ace Brand 10K LED Light Bulbs target price-sensitive customer looking to trade up to LED.

• Integrated new retrofit kit display highlights the ease of installation and cleaner look.

• New product change highlights: - New filament technology will replace secondary optic - New packaging for reflectors (A-Line, BRs and PARs) - Best-selling light bulbs will now be multi-pack - Expanded color LED assortment

INCENTIVES*:


4

REVIEWTHE LIGHTBULB EVOLUTION:

New Ace Brand LED

Updated merchandising makes finding the right bulb even easier

Updated POP, signage and displays

Updated assortment includes latest cutting edge technology

• 10K LED bulbs in top selling bulb types and pack sizes

• Ace Brand bulbs are backed by the Ace Brand Promise to guarantee customer satisfaction

• In 2015 Light Bulb reset, we made a big splash with LED by launching it in one cohesive section to lead the aisle

• LED growth is established now, allowing us to re-merchandise the planogram by application

Good, Better, Best strategy allows for the maximum opportunity to upsell

• Merchandising Halogen next to LED allows the customer to compare their options and trade up to a more efficient, longer life bulb.

• Reflector area includes new self-selection bulb identifier

• New retrofit display helps explain the benefits of upgrading to LED retrofit kit versus can light

• New filament technology in decorative bulbs replaces secondary optic for a more cost efficient and more traditional looking bulb


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CURRENTSuper LightBulbs POG

NEWSuper LightBulbs POG

2015

2016

General Purpose GE Reveal Decorative SpecialtyReflectors

Continued reduction of old, outdated technology• Reduce halogen, incandescent, and older generation LED technology light bulbs• Expanded LED Specialty bulb selection• Remove slow moving Specialty bulbs that are no longer relevant with today’s customer

Ace Brand LED• New Premium - Ace Brand LED• Expanded offering of 10,000 hour Ace Brand LED

National Branded LED Option• Keep Good, Better, Best trade-up structure with national brand LED

COMING SOON


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CONVENIENCE: 24 FT. LIGHT BULBS

SUPER AND CORE: 28 FT. LIGHT BULBS

REVIEWNEW LIGHT BULB PLANOGRAMS:

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CONVENIENCE: 24 FT.

CHANGE IN # OF SKUS = 55 ADDED/110 REMOVED

OLD POG NEW POG CHANGE % CHANGE

# of SKUs 389 333 (56) -14.4%

Linear Ft. 24 24 0 0.0%

Avg. 12 mo. Sales$ $48,735 $50,092 $1,357 2.8%

Avg. 12 mo. GP$ $20,673 $22,516 $1,843 8.9%

GP% 42.4% 44.9% 2.5% —

GP$/Linear Ft. $861 $938 $77 8.9%

CORE: 28 FT.



# of SKUs 436 404 (32) -7.3%

Linear Ft. 28 28 0 0.0%

Avg. 12 mo. Sales$ $52,286 $55,864 $3,578 6.8%

Avg. 12 mo. GP$ $22,032 $24,995 $2,963 13.4%

GP% 42.1% 44.7% 2.6% —

GP$/Linear Ft. $787 $893 $106 13.5%

SUPER: 28 FT.



# of SKUs 476 404 (72) -15.1%

Linear Ft. 32 28 -4 -12.5%

Avg. 12 mo. Sales$ $55,130 $56,053 $923 1.7%

Avg. 12 mo. GP$ $23,461 $25,051 $1,590 6.8%

GP% 42.6% 44.7% 2.1% —

GP$/Linear Ft. $733 $895 $162 22.1%

PROFITABILITY:


8

By showing bulb image on the sign, aisle signs guide customers to the right products quickly.

Display will show customers a comparison of the clean look of a retrofit kit versus a replacement can light.

NEW LED RETROFIT DISPLAY:

REVIEWNEW CATEGORY ID BLADES:


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Updated POP reflects changes in our Good, Better, Best strategy and helps the customer understand the value in trading up.

Ace Brand Promise ensures Ace Brand customers will be

satisfied with their bulb

New Floodlight selection sign gives customer the ability to size their bulb and ensure they purchase the right size reflector bulb.

NEW SELF SELECTION SIGN:

REVIEWNEW LIGHT BOX POP:


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PROGRAM REQUIREMENTS:

• Must have completed 2015 Light Bulb Level 3 Reset or have 80% Discovery Compliance in Light Bulbs.

• Must submit order by bulletin due date to receive desired delivery date.

BULLETIN ORDERING INFORMATION:

Bulletin Wave

Bulletin Due Date

Approx Delivery Date

Dating Description Bulletin Cost

1 10/4/2016 12/10/2016 6 months

LIGHT BULB SUPER FORMAT $1,701.06

LIGHT BULB CORE FORMAT $2,130.57

LIGHT BULB CONV FORMAT $1,480.83

LIGHT BULB EXP FORMAT $702.75

2 11/11/2016 1/7/2017 6 months





3 1/7/2017 2/15/2017 6 months





4 4/14/2017 5/26/2017 6 months





Note: New POP, Sign Kit and Retrofit Display will ship with your bulletin order.

THREE EASY STEPS TO ORDER:

1Complete Light Bulb Agreement form (ACENET>Growth Initiatives>Ace Initiatives>Light Bulbs>Agreement Form)

2Select Buyback Credit (up to bulletin order amount) or 50% off bulletin order

3Select appropriate bulletin based on format size

Once you have selected the bulletin, the order will be submitted for you. All you have to do is complete the Light Bulb Agreement form and you’re done!


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LIGHT BULB IMPLEMENTATION TIMELINE & KEY DATES:

AUG

SEPT

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

WAVE 1 ALL WAVES

MarkdownDiscontinued

Product

Bulletin Close Date

Oct. 4

Delivery Date

Dec. 10Delivery

DateJan. 7

Delivery Date

May 26

Bulletin Close Date

Nov. 4

Bulletin Close Date

Jan. 1

Bulletin Close Date

Apr. 14

WAVE 2 WAVE 3 WAVE 4

Delivery Date

Feb. 15

CLO

SE

D

CLO

SE

D

CLO

SE

D


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VISIT ACENET FOR MORE DETAILS ON THE LIGHT BULB EVOLUTION: ACENET > Growth Initiatives > Ace Initiatives > Light Bulbs

FOR QUESTIONS, PLEASE CONTACT: Ace Retailer Care Center: (800) 777-6797

STEP - 1

STEP - 3

Run your category reset customized SKU report in ADW (ACENET > Find it Fast > ADW Reports > Store > R-STO-R0065 – Category Reset Customized SKU Report). If you need additional details on how to run the report, visit ACENET > Growth Initiatives > Ace Initiatives > Light Bulbs > ADW Customized SKU Report

Take action on X-ranked SKUs being removed

Identify SKUs to be worked into the new planogram

Identify SKUs eligible for buyback

Identify Markdown SKUs from the ADW Report & Implement a Markdown Strategy

Determine start date for reset

Order all necessary fixtures and supplies

Confirm receipt of product, sign kits, fixtures and display

Conduct quick category sort when merchandise is received

Identify additional SKUs for markdown

Schedule staff/resources for the reset duration

If preferred, order Gladson tags through your District Manager or Project Manager

Remove markdown merchandise from the aisle

Remove, package and create a credit PO for all buyback merchandise

Identify all items to be worked into the set on the tags

Take training on Ace Learning Place

Conduct an intensive pre-walk with your team lead

Provide access to all fixtures, supplies and merchandise

Remain on site for interaction with the team

Identify the aisles being reset to your customers

Begin reset cadence

Relocation code and bin tag the aisle

Order missing SKUs

Make necessary G/L entries for credits

Six Steps to a Successful Implementation

IMMEDIATE – PRE-WORK

STEP - 2 60-90 DAYS PRE-RESET STORE PROCEDURES

2 WEEKS FROM RESET

STEP - 4 2 DAYS FROM RESET

STEP - 5 RESET WEEK

STEP - 6 POST RESET


Documents

10927 DE LightBulbs Catalog · light bulb exp format $702.75 2 11/11/2016 1/7/2017 6 months light bulb super format $1,701.06 light bulb core format $2,130.57 light bulb conv format