Director of SalesDirector of SalesMr. Randy ChandlerMr. Randy Chandler

• FY 2007 WW sales $5.538B

– +2.2%

• Case lot sale results

– May 1.8% increase PY

– September $13.8M, 10% increase PY

• Europe - 9.6%

• East - 2.7%

• West - 6.8%

• FY 2007 WW sales $5.538B

– +2.2%

• Case lot sale results

– May 1.8% increase PY

– September $13.8M, 10% increase PY

• Europe - 9.6%

• East - 2.7%

• West - 6.8%

Where We Have Been

Where We Have Been

• Perishables accounted for 87 of DeCA’s 124

million dollar gain in FY 2007

• 70% of the Agency’s gain with 42% of the

Agency’s sales

• Perishables accounted for 87 of DeCA’s 124

million dollar gain in FY 2007

• 70% of the Agency’s gain with 42% of the

Agency’s sales

Where We Have BeenWhere We Have Been

• Summer Club Pack Sales +$29 million

– 22% increase

• Quarterly program to include seasonal club

pack opportunities

• Promotes dialogue

• Maintain the “Treasure Hunt”

• Summer Club Pack Sales +$29 million

– 22% increase

• Quarterly program to include seasonal club

pack opportunities

• Promotes dialogue

• Maintain the “Treasure Hunt”

Where We Have BeenWhere We Have Been

1. Fort Bragg (09)*

3. Anderson (90)

5. Travis (16)

7. Miramar (11)

9. Orote (89)

1. Fort Bragg (09)*

3. Anderson (90)

5. Travis (16)

7. Miramar (11)

9. Orote (89)

2. Nellis AFB (17)

4. Fort Lewis (07)

6. Anchorage (24)

8. Jacksonville (13)

10. McChord (06)

2. Nellis AFB (17)

4. Fort Lewis (07)

6. Anchorage (24)

8. Jacksonville (13)

10. McChord (06)

Top 10 Club Pack StoresTop 10 Club Pack Stores

*Number in Parentheses Represents Store Sales Rank in DeCA*Number in Parentheses Represents Store Sales Rank in DeCA

Where We Have BeenWhere We Have Been

• 40 non-edible category reviews accomplished

since January

– 13.7% reduction in total SKUs

– 10.6% reduction in K-1 SKUs

• 14 edible category reviews accomplished since

January

– 12.7% reduction in total SKUs

– 12.5% reduction in K-1 SKUs

• 40 non-edible category reviews accomplished

since January

– 13.7% reduction in total SKUs

– 10.6% reduction in K-1 SKUs

• 14 edible category reviews accomplished since

January

– 12.7% reduction in total SKUs

– 12.5% reduction in K-1 SKUs

Where We Have BeenWhere We Have Been

• Million CFL bulb goal in FY 2008

• Reusable green bags

• Organics = healthy growth!

• Green clean products

• Recycled products

• Million CFL bulb goal in FY 2008

• Reusable green bags

• Organics = healthy growth!

• Green clean products

• Recycled products

Environmental Focus Areas

Environmental Focus Areas

• Continue to share all review results with all

participants

• Significant reduction in number of reviews

• Allow time for implementation and

evaluation of prior reviews

• Standardized format

– Specific actions and goals

• Continue to share all review results with all

participants

• Significant reduction in number of reviews

• Allow time for implementation and

evaluation of prior reviews

• Standardized format

– Specific actions and goals

Where We Are GoingWhere We Are Going

• Expansion of “Store of the Future” concepts

into future resets

• Costs for each concept estimated

• Greatest payback potential – Power Aisle

• Premium in-line candy rack

– Implement in 11 stores

• Measure impact on total category

• Expansion of “Store of the Future” concepts

into future resets

• Costs for each concept estimated

• Greatest payback potential – Power Aisle

• Premium in-line candy rack

– Implement in 11 stores

• Measure impact on total category

Where We Are GoingWhere We Are Going

• Review allocation of space within the box

– Analysis by category and segment

• Missing opportunities

– Recurring out of stocks

– New categories

– New consumer directions

• Maintain days of supply

• Review allocation of space within the box

– Analysis by category and segment

• Missing opportunities

– Recurring out of stocks

– New categories

– New consumer directions

• Maintain days of supply

Where We Are GoingWhere We Are Going

• One size does not fit all

• Future assortments to be strategically

aligned

• Demographic influence on assortment

– Regional influences

– Installation mission = specific demographic

– Cognizant of distributor partner

• One size does not fit all

• Future assortments to be strategically

aligned

• Demographic influence on assortment

– Regional influences

– Installation mission = specific demographic

– Cognizant of distributor partner

Where We Are GoingWhere We Are Going

• Promotional Planning

– Look long term

• Sales & savings targets

– What is the expectation

– Impact on the benefit

• Display ready

– Pallets

– Cases

• Promotional Planning

– Look long term

• Sales & savings targets

– What is the expectation

– Impact on the benefit

• Display ready

– Pallets

– Cases

Where We Are GoingWhere We Are Going

• Elevate perishable promotions, to include

more Manager’s Specials and Power Buys

• Cross merchandising opportunities with road

shows and farmers markets

• More focus on frozen food promotions

• Elevate perishable promotions, to include

more Manager’s Specials and Power Buys

• Cross merchandising opportunities with road

shows and farmers markets

• More focus on frozen food promotions

Where We Are GoingWhere We Are Going

• Expanding seafood road shows to all

locations

• Expanding fresh sushi

• Potential use of end caps to feature frozen

and chilled foods in stores with no display

areas

• New $60 million bagged salad program

• Meat and produce ads in base papers

• Expanding seafood road shows to all

locations

• Expanding fresh sushi

• Potential use of end caps to feature frozen

and chilled foods in stores with no display

areas

• New $60 million bagged salad program

• Meat and produce ads in base papers

Where We Are GoingWhere We Are Going

• Front end racks

– Preliminary meeting underway

• Increase in beverage coolers

– Design selection November

– Roll out January 2008

• Front end racks

– Preliminary meeting underway

• Increase in beverage coolers

– Design selection November

– Roll out January 2008

Where We Are GoingWhere We Are Going