Transcript Slide 1

Mr. Patrick B. Nixon
Director
1
2
 The view from Victory Lane
• Pulling out the stops on Produce
• Off the brakes on Health & Wellness
• Moving out on Virtual Commissary
• Passing the competition as the Nutritional leader
• In peak condition on fiscal responsibility
• In R & D on the “shopping model of tomorrow”
• Setting records in speed to shelf
• Reaching the big time with highest lift to promotional dollar
• Running tomorrow’s race today --“Store of the Future”
debuts in San Diego
3
 Insert Store of the Future Video here
4
 Sales Growth
• $2,760.3 YTD March vs. $2,711.8 in
March FY 2006 (up $48.5M; +1.8%)
 Benefit Value
•32% in FY 2006 vs. 30% Goal
 Patron Satisfaction
• 4.23 vs. 4.55 - (+7.6%)
• ACSI for CY 2006 is 77 vs. Supermarket Industry 75
5
Avg. Sales per Week
$506,968
$297,496
Weekly Dollar Sales per Sq. Ft. of
Sales Area
$16.15
$ 7.12
Avg. Transaction
$60.76
$30.86
Avg. Sq. Ft. per Store
31,392
34,147
Avg. Number of SKU’s
16,829
45,000
22.1
15.3
Inventory Turns
6
 The AAFES Community Development Initiative
• Concepts
 Town Center
 Lifestyle Center
 Mixed Use Development
• Locations: AAFES investigating feasibility at 7 locations
 DeCA will participate where it makes sense
 FY 2008 replacement commissary at Fort Bliss
being planned as part of a Town Center
• May include: Fast food, fitness centers, furniture, military
clothing, theatres, and national retail chains for books, clothing,
casual dining, etc
7
 “Clean Audit Opinion” 5th consecutive year
 Highest score in DoD for FY 2006 Annual
Statement of Assurance for internal controls
 Average energy use per sq ft 10% above the
“Energy Star” rating for supermarkets
8
 Best customer identity theft protection
• Latest encryption in DoD
• Strong firewalls and intrusion detection protect
confidential data
 Annual FISMA and Privacy Act compliance
certification
9
 Scholarship program
• Applications: 34,912
• Recipients: 2,966
• Dollars awarded: $4,657,000
 Voter Assistance & Military One-Source
 Spouse & family member hiring
• 38% employment
10
 Outreach
• DeCA Dietitian
 Promote DeCA as Nutritional Leader
 Partnership with DoD
• DoD Nutrition Committee
 Partnership with Tricare
 Ask a Dietitian on Commissaries.com
• Commissary Awareness Month
• Regional commercial grocer application
11
 Workforce of the Future
• Critical strategic element
 Implement a more productive, flexible store level workforce
 Better serves needs of all stakeholders
 More viable in a competitive sourcing environment
• Status
 Initial briefing provided to 25 stores as of April 1, 2007
 Implementation on target for 51 stores – FY 2007
 All Hawaii stores Grand Forks, ND and Smokey Point, WA
commissary have received comprehensive WOF training
12
 Commissary Advanced Resale Transaction System
(CARTS) – DeCA’s Point of Sale System for today &
the future
• On track to deploy CARTS at all commissaries by May 2008
• Operational testing & evaluation initiated February 23, 2007
 Engaged in testing at Fort Lewis, WA; McClellan, CA;
Lackland, TX; Fort McCoy, WI; and San Diego, CA
• Preparing for follow on testing at Vogelweh, GE
13
 Warehouse Management System
• Manages CDC receiving, storing and shipping functions
• Streamlines processes by leveraging latest technology
• Feb & Mar 2007 – Deployed to CDC’s in Germany
 Successfully deployed Voice Activated Picking
 Initial deployment of Performance Management Tool
 Transportation Management System replacement
on track for FY08 completion
14
 DeCA Enterprise Business System – Replaces
legacy business applications
Cataloging
Receiving
Ordering
Inventory Management
• Milestone A approval on target – 4th quarter FY 2007
• Projected Milestone B approval & software
contract award – 3rd quarter FY 2008
• Projected Initial Operating Capability – FY 2011
15
 Individual Shopping Experience
• Creating a sense of community
• Exciting shopping experience
• Brand name recognition
• High coupon usage
• Pantry loading or grab & go
16
 Health & Wellness
 Know your customer
 Food safety
17
“In stock-car racing there’s no such thing as drawing up
a precise game plan before a race starts—a set, preplanned strategy gets you nowhere. Racing changes by
the minute—or even by the second—with caution flags
coming out because of accidents, blown tires,
mechanical failures, and even rain….strategy, however,
is still very important as the race unfolds…pit stops play
the greatest role in race strategy.”
Mark Martin, NASCAR Driver and Champion
18
 Maintaining the lead
• Measuring success as a team dynamic
• High performance requires top talent
• Staying agile in a continually changing environment
• Adapt, adapt, adapt
• The “Lead Draft”
 Listening to the “spotter”—honing the individual
shopping experience
 Strengthening partnerships
 Virtual Commissary—Part 2
19
 Increased Partnership
 Increased use of technology
 Increased use of patron demographics
 Personalized shopping experience
 Exploring several location options
20
21