Transcript Coaliton of Military Distributors

2009
ALA Conference/Food Show
Honolulu, Hawaii
August 21, 2009
Mr. Philip E. Sakowitz, Jr.,
Director and CEO
1
Savings
+
Service
+
Foot Traffic
=
Sales
2
Updated savings figures for commissary shoppers based
on October 2008 USDA figures for retail grocery store
food purchases consumed at home:
X 31.1% average savings =
– FAMILY of FOUR saves nearly $3,400 annually
– FAMILY of THREE saves more than $2,600 annually
– A COUPLE saves more than $2,100 annually
– SINGLES saves nearly $1,200 annually
3
• Commissary Customer Satisfaction Index (CCSS)
–Patron Satisfaction 4.61 (out of 5.0)
• American Customer Satisfaction Index (ACSI)
–National average for commercial grocers: 76
–DeCA’s score: 76
• FDA Recalls
–Above average for commercial grocers
• Sustain Customer Savings
–Benefit Value
–Mandate: 30%
–Actual: 31.1%
4
• Contract provides customized world class customer service
training to all DeCA employees
• 1st Corporate training program ever
• Dale Carnegie Training will provide training
– 648 Classes – Some classes will be bi-lingual as needed
– Training dates: Aug 1 – Sep 30, 09
• Consistent with our Agency goals of providing great
customer service
• Builds on our strength of customer service
• Good for the Customers and Good for the Employees
– Significant for employees education and training
5
Location
Type
Date
Richards-Gebaur, MO
New
Jan. 27, 2009
New Orleans, LA
Interim store
March 31, 2009
Saratoga Springs, NY
New
April 14, 2009
Dyess AFB, TX
Re-opening
April 21, 2009
Robins AFB, GA
New
May 28, 2009
Livorno/Camp Darby, Italy
New
June 5, 2009
Fort Drum, NY
Re-opening
June 30, 2009
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FY
Location
Grand Opening
2007
Chievres, Belgium
Oct 2009
2008
New Orleans, LA
Oct 2010
2008
Eglin, FL
Dec 2010
2009
Fort Bliss, TX (BRAC)
Jul 2011
2009
Fort Riley, KS (MILCON)
May 2011
2009
Moody, GA
Jul 2011
2009
Quantico, VA
Aug 2011
2009
Fort Campbell, KY
Oct 2011
7
Percent
Change
East
Customer
Transactions
40.1M
Europe
10.8M
- 1.2%
West
42.0M
+ 2.5%
Total
92.9M
+ 1.6%
Area
+ 1.5%
8
Area
East
Europe
West
Total
•Data current thru Aug 9, 2009
Customer
Transactions
34.8M
9.5M
36.2M
80.6M
Percent
Change
+ 1.86%
+ 3.79%
+ 1.12%
+ 1.75%
9
Area
East
Europe
West
Total
Dollar
Sales
$2.7B
$487M
$2.6B
$5.8B
Percent
Change
+ 4.8%
+ 2.7%
+ 5.6%
+ 5.0%
10
Area
Dollar Sales
East
Europe
West
Total
$2.4B
$393M
$2.3B
$5.8B
•Data current thru Aug 9, 2009
Percent
Change
+ 4.2%
+ 4.5%
+ 2.9%
+ 3.66%
11
DeCA Has Improved Loyalty Among Their
shoppers Compared to 2007, and WMSC
Has Slightly Declined
CHANNEL LOYALTY
Total US Market - 2008
41.1
38.6 40.2
39.3 40.0 39.2
7.8
COMMISSARY
8.4
8.1
KROGER GROCERYCORP
2006
DeCA 2008 Annual State of the Business
Source: Nielsen Homescan 2008 Cross Outlet Facts
5.0
5.4
5.3
SAFEWAY- CORP
2007
2.2
4.8
6.2
SUPERVALU RETAIL
TOTAL- CORP
WAL- MART- SUPER
2008
12
Guard and
Reserve On-Site
Sales
Partnerships/
Cooperative
Efforts
Corporate
Communications
Outreach Efforts
Business
Transformation
Workforce
Development
Going
Greener
Commissary
Construction/
Build to Lease
Initiatives
13
42% Subscribe
to an RSS feed
55% Have started
their own blog
65% Have
uploaded photos
85% Have watched
video clips
Social
Title
Media
79% Of active users
have read a blog
59% Have joined
a social network
14
• Increased Focus on the Commissary Benefit Awareness
– Army Wives Talk Radio
Your Text here
– Operation Homefront
• Accolades
Your TextReceived
here
“Thank you for having the man on from the commissary (Mr. Sakowitz). I have been married 10
months and I am 4 months pregnant. My husband and I have been looking for ways to cut back
In our expenses in anticipation of the baby's arrival. Neither me or Eric knew you could save so
much at the commissary. I remember you said on the air that you are the coupon queen but I didn't
know that you used them at the commissary.”
“I went shopping last night at the commissary. WOW! I took my coupons, my shopping list and
when I got home I had saved $14 in coupons and my total bill was $46 dollars less than Safeway!
That is $92 a month we could have been saving all along!
15
There should be a big billboard on every base!”
• FY 2008: 104 on-site sales generated
– $4.5M in sales
– 41,347 Guard & Reserve customers
• FY 2009: 169 on-site sales scheduled (150 goal)
– 136 events have been accomplished
– $ 7.7M in sales
– 71,107 Guard & Reserve customers
•Data current thru Aug 9, 2009
16
•
Conducted survey to identify stocking issues
– Focused on 33 top manufacturers
– Targeted 3 Groups
1. Less than 10% support
2. Between 10 & 20% support
3. Over 20% support
•
DeCA provided survey results to buyers/category
managers
– Use vendor stocking information as part of buying/item selection
process
– Increase emphasis on manufactures responsibility
–
•
Scheduled future surveys to measure support changes
Anyone over 20% will be required to meet with the Director on a plan
of action to improve support
17
• Working in partnership with Industry
– Conduct meaningful dialogue and interchange of best business
practices and processes
Your Text here
– Synergistic effort builds supply chain alliances and provides vehicle
for developing collaborative innovations
• Developing Industry Interchange Training Program
Your Text here
– Excellence through integration of government/commercial processes
to drive new business models
– Facilitates integrated multidisciplinary training opportunities across
core functional areas with international companies
– Key element of our Talent Development Program
• 10 Industry Partners; 6–12 month assignments
18
• Production & Distribution of “How to Conduct a Commissary Tour” DVD
– Distribute DVD to DeCA regions, military and civilian dietitians
• Continue to work with the DoD Nutrition Environment Enhancement Team for
health promotion and promotion of the benefit.
• Target dietitians in the War College
– Outreach about the benefit and health promotion
– The Navy Health Promotion Course
– The Air Force Health and Wellness Centers
• Kit will be available on www.commissaries.com
19
• DeCA is a Federal partner in
promoting USDA’s initiative
to DoD community
• DeCA and its industry
partners to promote
healthier eating habits in
commissaries
• Children, military members,
seniors targeted for
reminders on healthy eating
options
20
• OMB Memo, June 11, 2009, Planning for the
President’s FY 2011 Budget and Performance Plan
• Administration’s Goal: Build a transparent, highperformance government capable of addressing the
challenges of the 21st century.
Four deliverables from federal agencies:
1. Identification of limited number of high-priority
performance goals
2. Submission of the FY 2011 Budget
3. Steps to reform agency hiring processes
4. Steps to improve employee satisfaction and wellness
21
• Audited Opinion of Financial Statements
– Clean Audit Opinion — 7th straight year
• Internal Controls over Financial Reporting
– In Top three in DoD for FY 2008 Statement of Assurance for Internal
Controls
• Commercial Services Mgt (formerly Competitive Sourcing)
– "The Omnibus Appropriation Act prohibits funding A-76 during FY
2009."
• Constant Dollar Decline!
22
FY 2000 Constant Dollars ($M)
1,400
1,300
1,200
1,100
1,000
900
800
F Y00
F Y01
F Y02
F Y03
F Y04
F Y05
F Y06
F Y07
F Y08
F Y09
C o st (T hen Yr $ )
1,019
1,011
1,053
1,094
1,123
1,165
1,203
1,202
1,263
1,280
C o st (F Y 2000 $ )
1,019
980
983
990
985
982
978
920
912
870
23
DOD
Budget
Scrutiny
Competition
The
Economy
Relevance
24
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