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BONNIE A. KANITZ
DIRECTOR, DeCA EAST
July 11, 2007
DeCA EASTSALES UPDATE
FY06 SalesFY06 SalesACV %ACV % SalesSales % %
ChangeChangeTransactionsTransactions
% Change% ChangeAverage Average Sale % Sale %
DeCADeCA 100%100% 5.417B5.417B 0.9%0.9% -2.1%-2.1% 3.0%3.0%
EastEast 46.6%46.6% $2.526B$2.526B 1.9%1.9% -1.2%-1.2% 2.9%2.9%
EuropeEurope 8.7%8.7% $ .470B$ .470B -3.8%-3.8% -5.0%-5.0% 1.3%1.3%
WestWest 44.7%44.7% $2.420B$2.420B 1.0%1.0% -2.1%-2.1% 3.2%3.2%
DeCA East achieves over $2.5B in sales
for 2006!!
FYTD 07 (October 06 – May 07) SALESFYTD 07 (October 06 – May 07) SALES
LocationLocation SalesSales% %
ChangeChangeTransactionsTransactions
% Chg% ChgAverage Average
Sale % Sale %
DeCADeCA $3.676B$3.676B 1.8%1.8% -1.0%-1.0% +2.9%+2.9%
DeCA DeCA EastEast $1.725B$1.725B 2.9%2.9% -0.1%-0.1% +2.9%+2.9%
Zone 21Zone 21 $75.2M$75.2M -1.2%-1.2% -4.9%-4.9% +3.9%+3.9%
Zone 23Zone 23 $77.5M$77.5M 0.4%0.4% -1.2%-1.2% +1.6%+1.6%
Zone 24Zone 24 $198.0M$198.0M 3.7%3.7% +0.2% +0.2% +3.4% +3.4%
Zone 25Zone 25 $164.2M$164.2M 1.3%1.3% -1.4%-1.4% +2.7%+2.7%
MAY 2007 RESULTSMAY 2007 RESULTS
REGIONREGION CASESCASES DOLLARSDOLLARS %%
EASTEAST 1,042,826 1,042,826 $ 7,084,161$ 7,084,161 56.756.7
EUROPEEUROPE 61,046 61,046 $ 775,105$ 775,105 6.2 6.2
WESTWEST 721,793 721,793 $ 4,632,153$ 4,632,153 37.137.1
GRANDGRAND
TOTALTOTAL 1,825,6651,825,665 $12,491,420.01$12,491,420.01
All time record for May Worldwide Caselot SalesAll time record for May Worldwide Caselot Sales 1.6% increase over the Worldwide Caselot Sale in May 20061.6% increase over the Worldwide Caselot Sale in May 2006
Fort DrumFort Drum
1010thth Mountain Division has 4 brigades. Three are Mountain Division has 4 brigades. Three are stationed at Fort Drum; one is stationed at Fort Polk.stationed at Fort Drum; one is stationed at Fort Polk.
A brigade from Fort Drum returned from extended A brigade from Fort Drum returned from extended deployment in June from Afghanistan.deployment in June from Afghanistan.
Another brigade from Fort Drum, (originally scheduled to Another brigade from Fort Drum, (originally scheduled to return home in June), was extended until late September.return home in June), was extended until late September.
The brigade returning in September from an extended The brigade returning in September from an extended tour in Iraq will be replaced by a brigade at Fort Drum.tour in Iraq will be replaced by a brigade at Fort Drum.
Next Spring, another Fort Drum brigade will return to Next Spring, another Fort Drum brigade will return to Afghanistan. This will leave only one brigade at Fort Afghanistan. This will leave only one brigade at Fort Drum.Drum.
• FORT DETRICK
NEW CONSTRUCTION $13.5M 34,210 SQUARE FEET CONSTRUCTION START DATE: SEP 06 PROJECTED COMPLETION DATE: JAN 08
• FORT DRUM
ADD/ALT PROJECT $19.2M 82,800 SQUARE FEET PROJECT START DATE: JUL 07 COMPLETION DATE: MAR 09 MAJOR ELEMENTS:
o SMALL ENTRANCE ADDITIONo COMPLETE RENOVATION TO CURRENT DeCA STANDARDS AND LAYOUT
• SARATOGA SPRINGS
NEW CONSTRUCTION (REPLACES SCOTIA) $7.1M 22,400 SQUARE FEET START DATE: DEC 07 PROJECTED COMPLETION DATE: NOV 08
• TOBYHANNA
ARCHITECTURAL & REFRIGERATION UPGRADE $3.6M START DATE: SEP 06 PROJECTED COMPLETION DATE: OCT 07 MAJOR ELEMENTS:
o SALES AREA UPGRADEo REPLACE REFRIGERATION EQUIPMENT & DISPLAY CASESo UPGRADE MEAT MARKETo MISC. REPAIRS
Impact of closing locations: (BRAC
2005)• Commissaries affected: 6 Stores
• Fort Monmouth, NJ
• Fort McPherson, GA
• Fort Gillem, GA
• CE Kelly Support Center, PA
• NSCS Athens, GA
• NAS Brunswick, ME
• FY 2006 Sales: $65.5M
• FY 2006 Surcharge: $3.3M
• Depreciated value of assets: $9.1M
• Employee authorizations: 195
• Brunswick
FYTD 07 Sales (May 31) +2.4 $176,058
FY 09 there will be a 50% draw down in active duty members due to Squadron deployments that are not returning to Brunswick.
Attitude is everything! Brunswick has become one of the best Attitude is everything! Brunswick has become one of the best “Team Stores” in the zone. All managers and staff approach their “Team Stores” in the zone. All managers and staff approach their jobs as if they are getting a new store in 4 months and will all jobs as if they are getting a new store in 4 months and will all receive grade increases versus actually closing in 3 years due to receive grade increases versus actually closing in 3 years due to BRAC.BRAC.
• C. E. KellyC. E. Kelly
FYTD 07 Sales (May 31) – 6.2% FYTD 07 Sales (May 31) – 6.2% ($322,734)($322,734)
Extensive BRAC media coverage.Extensive BRAC media coverage.
All installation activities, i.e. PX, Gym, have All installation activities, i.e. PX, Gym, have reduced operating hours. This limits the amount of reduced operating hours. This limits the amount of traffic to the Post and Commissary.traffic to the Post and Commissary.
• Fort MonmouthFort Monmouth
FYTD 07 Sales (May 31) – .13% FYTD 07 Sales (May 31) – .13% ($10,724)($10,724)
Curtailment of operational hours at some facilities Curtailment of operational hours at some facilities located on baselocated on base
Tours by interested parties regarding purchase of the Tours by interested parties regarding purchase of the Fort Monmouth property continueFort Monmouth property continue
Customer base is primarily retired, senior Customer base is primarily retired, senior citizenscitizens
#1 Aggressive merchandising program#1 Aggressive merchandising program Focus on perimeter departments - - quality, Focus on perimeter departments - - quality,
availability, service, & maximum savingsavailability, service, & maximum savings
Set expectations - perimeter always comes first Set expectations - perimeter always comes first
Meat – cut all that you can cut, major push to eliminate Meat – cut all that you can cut, major push to eliminate
case ready on principle cuts - - maximizes customers case ready on principle cuts - - maximizes customers
savingssavings
Meat Truckload / Seafood Road Shows - - aggressively Meat Truckload / Seafood Road Shows - - aggressively
stomped unauthorized installation competitionstomped unauthorized installation competition
Focus on perimeter departments (cont)Focus on perimeter departments (cont)
Produce – emphasis on merchandising and qualityProduce – emphasis on merchandising and quality
Deli/Bakery – focusing on improving as it is a “real” Deli/Bakery – focusing on improving as it is a “real”
departmentdepartment
Aggressive indexing of categories & MBU program
compliance
Case lot/truck load sales/side walk sales –
continuous special outreach events
Club pack program endorsed and promoted Club pack program endorsed and promoted
Summer and Winter 06 Summer and Winter 06
#2 #2 Focus on leadership with four “E’s & P”Focus on leadership with four “E’s & P”
in every storein every store
EEnergynergy
EEnergizenergize those around youthose around you
EEdgedge (able to make those tough decisions)(able to make those tough decisions)
EExecute xecute & & PPassionassion
Building strong teams to execute Agency vision Building strong teams to execute Agency vision
and programsand programs
#3 Focus on weekend vendor stocker #3 Focus on weekend vendor stocker
supportsupport
Do you really know what yourDo you really know what your
support is on the support is on the
weekend?weekend?
One Store, One 300K One Store, One 300K Super Bowl Saturday Sales Super Bowl Saturday Sales
Opportunity Opportunity Friday, Saturday, Sunday = Friday, Saturday, Sunday =
60-65% Sales60-65% Sales Friday = Vendor Admin Friday = Vendor Admin
DayDay Saturday/Sunday – poorest Saturday/Sunday – poorest
days for Vendor Stockingdays for Vendor Stocking Who’s watching the Hen Who’s watching the Hen
House?House?
Days Results 285K in sales = missed target goal!
Rank Date Net Sales Event1 1/31/2004 $26,032,612 Super Bowl
2 2/3/2007 $26,029,117 Super Bowl
3 11/18/2006 $25,255,742 Thanksgiving
4 2/2/2002 $24,835,463 Super Bowl
5 11/19/2005 $23,802,452 Thanksgiving
6 11/17/2001 $23,765,390 Thanksgiving
7 2/4/2006 $23,571,575 Super Bowl
8 3/3/2001 $23,308,730 Pay Day
9 7/1/2005** $23,169,867 July 4th
10 12/30/2005** $23,125,009 New Year's Eve
11 9/2/2006 $23,100,835 Labor Day
12 12/2/2006 $22,896,133 Pay Day
13 11/20/2004 $22,860,682 Thanksgiving
14 9/30/2006 $22,638,613 Pay Day
15 2/3/2001 $22,616,317 Pay Day
** Friday, All other dates Saturday
DeCA Missed Top Sales Record DayDeCA Missed Top Sales Record Day by by $3K $3K on Feb 3on Feb 3rdrd!!
1)1) Program Weekend Checks on Service LevelsProgram Weekend Checks on Service Levels
2) Fix Vendor Stocking Support on Weekends2) Fix Vendor Stocking Support on Weekends a) Separate Team for Fri, Sat & Sunday?a) Separate Team for Fri, Sat & Sunday? b) Pay Hourly – NOT BY ROLL-UP!b) Pay Hourly – NOT BY ROLL-UP!
DeCA WILL PAYDeCA WILL PAY OVER OVER $104,000$104,000 TO CONTRACTORS TO CONTRACTORS
TO STOCK VENDOR CATEGORIES FROM JUST TWO STORES !TO STOCK VENDOR CATEGORIES FROM JUST TWO STORES !
Fort Meade (Class 5)Fort Meade (Class 5)
43,208 cases and $25,064 paid to the contractor FYTD 0743,208 cases and $25,064 paid to the contractor FYTD 07
Average cases 5,401/monthAverage cases 5,401/month
Average cost $3,133/month (equates toAverage cost $3,133/month (equates to $37,596 annually!)$37,596 annually!)
Hanscom (Class 3)Hanscom (Class 3)
Estimated Frozen Food Cases Stocked & Cost Per MonthEstimated Frozen Food Cases Stocked & Cost Per Month
7,296 cases and $5,584 paid to the contractor7,296 cases and $5,584 paid to the contractor
Equates toEquates to over $67,000 annually over $67,000 annually
• A weekend vendor stocking test program was initiated by A weekend vendor stocking test program was initiated by Kraft Foods Military effective March 30, 2007 in 43 DeCA Kraft Foods Military effective March 30, 2007 in 43 DeCA East stores.East stores.
Additional stocking support is being provided to selected CONUS Additional stocking support is being provided to selected CONUS stores for enhanced weekend coverage.stores for enhanced weekend coverage.
Labor supplement covers mid-morning to late afternoon in test stores, Labor supplement covers mid-morning to late afternoon in test stores, maximizing sales opportunities for all operating hours.maximizing sales opportunities for all operating hours.
Incremental shelf replenishment orders are considered to capture Incremental shelf replenishment orders are considered to capture missed consumption, and matched with the level of incremental missed consumption, and matched with the level of incremental support provided on a store by store basis.support provided on a store by store basis.
• Results are favorable and have proven in most instances Results are favorable and have proven in most instances to capture sales that were previously lost due to NIS to capture sales that were previously lost due to NIS conditions.conditions.
• Kraft, Nestle, Webco, and Sarvis now on board in select stores with payday weekend support!
• Other brokers and manufacturers are expressing interest and making inquiries regarding participation.
SARVIS
A “WIN-WIN” PROPOSITION!
Kraft Vendor Stocking Enhancement Test
FRIDAY-MONDAY FRIDAY-MONDAY
TOTALSTOTALS YTD TRENDSYTD TRENDS
PARTICIPATING STORES:PARTICIPATING STORES:(ZONES 21, 23, 24 & 25):(ZONES 21, 23, 24 & 25): TYTY ChgChg % Chg% Chg YTD CHGYTD CHG YTD CHANGEYTD CHANGE
FORT BELVOIRFORT BELVOIR $84,196$84,196 $10,297$10,297 13.9%13.9% 3.6%3.6% $88,186$88,186
FORT MEADEFORT MEADE $65,120$65,120 $9,640$9,640 17.4%17.4% 4.4%4.4% $80,819$80,819
MCGUIRE AFBMCGUIRE AFB $48,617$48,617 $6,718$6,718 16.0%16.0% -0.5%-0.5% -$6,213-$6,213
QUANTICO MCB $66,102 $7,730 13.2% 5.2% $91,701
DOVER AFB $19,757 $1,703 9.4% 1.9% $13,323
FORT DRUM $27,100 $6,237 29.9% 3.4% $25,369
FORT MYER $49,782 $4,595 10.2% 5.1% $72,175
HANSCOM AFB $21,678 $1,892 9.6% -3.9% -$28,112
BRUNSWICK NAS $16,749 $2,537 17.8% 1.6% $6,989
FORT MONMOUTH $10,362 $1,390 15.5% -1.7% -$6,074
NEWPORT NETCNEWPORT NETC $17,095$17,095 $1,419$1,419 9.1%9.1% 6.6%6.6% $35,352$35,352
PATUXENT RIVER NASPATUXENT RIVER NAS $21,212$21,212 $1,828$1,828 9.4%9.4% 1.5%1.5% $10,094$10,094
BANGOR ANGBBANGOR ANGB $7,041$7,041 $1,539$1,539 28.0%28.0% 4.3%4.3% $9,752$9,752
C.E. KELLYC.E. KELLY $6,669$6,669 -$354-$354 -5.0%-5.0% -3.9%-3.9% -$11,069-$11,069
“Pictures say 1,000 words!”
DeCA East POC for Vendor Stocking Issues (Joyce Chandler - CMS)
#4 Continued emphasis/training on CAO#4 Continued emphasis/training on CAO
processes to optimize shelf pack-outprocesses to optimize shelf pack-out
If you stock it, we will order it!!If you stock it, we will order it!!
Tactical Changes To Increase SalesTactical Changes To Increase Sales
Addressing leadership issues – Building Strong Teams!Addressing leadership issues – Building Strong Teams! Focus on perimeter salesFocus on perimeter sales Focus on MBU programs & special sales events Focus on MBU programs & special sales events
(“WOW!”)(“WOW!”) Push club pack salesPush club pack sales Continued CAO training to ensure maximum shelf stockContinued CAO training to ensure maximum shelf stock Improve Weekend Support & CoverageImprove Weekend Support & Coverage Ensuring that outreach program is at its maximum Ensuring that outreach program is at its maximum
potentialpotential Improve merchandising of the sales floorImprove merchandising of the sales floor Continuous indexing of commoditiesContinuous indexing of commodities
“Telling the future by looking at the past assumes that conditions remain constant.
“This is like driving a car by looking in the rear view mirror”
- Herb Brody