Harris Teeter 1999 Annual Report Download

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HARRIS TEETER AMERICAN & EFIRD
SUCCESSFUL
STRATEGIES
AT WORK
Ruddick Corporation
1999 ANNUAL REPORT

Table of contents

  • Page 1
    Ruddick Corporation SUCCESSFUL S T R AT E G I E S AT W O R K HARRIS TEETER AMERICAN & EFIRD 1999 ANNUAL REPORT

  • Page 2
    ... through an employee stock ownership plan. Ruddick's associates owned 23% of the Company's stock at fiscal year end and know that the long-term value of their investment is directly related to the financial performance of the Company. Contribute to the community. Ruddick Corporation believes it...

  • Page 3
    ... 9 6 105 3 2 95 Stores by State North Carolina South Carolina Georgia Virginia Tennessee Florida 96 97 98 99 95 96 97 98 99 Total Sales In Billions of Dollars Average Weekly Sales Per Store* In Thousands of Dollars Total sales for Harris Teeter grew by a compound annual growth rate of...

  • Page 4
    ...and Central America 30% 70% 1999 Operating Profit Percent of Total • Attempted acquisition of U.K.-based competitor, Hicking Pentecost Harris Teeter: $ 55.5 million American & Efird: $ 48.6 million 1999 Domestic and International Sales U.S. International A&E's international sales continued...

  • Page 5
    ...Known for exceptional product quality and variety, and superior customer service • 147 stores. Operates 147 stores in six states across the Southeast • 16,425 associates. High participation in our ESOP means our employees are highly motivated • Steady expansion. In-market store development and...

  • Page 6
    ...89 90 91 92 93 94 Sales 95 96 97 98 99 94 95 96 97 98 99 Cumulative Total Return* In Dollars In Billions of Dollars $100 invested in Ruddick Corporation common stock on September 30, 1994 would be worth $184 at the end of fiscal 1999, a 13% compound annual growth rate. * Assumes...

  • Page 7
    Ruddick Corporation Financial Highlights (Dollars in thousands, except per share data) 1999 $2,624,774 104,055 1998 $2,487,370 94,196 1997 $2,300,089 94,836 1996 $2,142,501 83,143 1995 $2,009,776 76,728 Net Sales Total Operating Profit Earnings Before Interest, Taxes, Depreciation and ...

  • Page 8
    ... our key markets and refine our store demographic profiles, Harris Teeter was successful in the divestiture of 11 western Virginia stores and the acquisition of 10 stores from The Kroger Co. in the Greensboro/Winston-Salem, North Carolina area. While this transaction adversely impacted sales and...

  • Page 9
    stores. These initiatives include more in-depth employee training and cross-training, engineered labor standards, sales planning based on customer data and enhanced inventory management and waste reduction efforts. Harris Teeter's Hunter Dairy installed new milk silos that enabled it to lengthen ...

  • Page 10
    ..., we have reï¬,ected on the many profound changes that have taken place in the retail and manufacturing business environments, both in the U.S. and internationally. Ruddick Corporation's management and directors are keenly aware of our responsibility to continually increase shareholder value.We...

  • Page 11
    ... fiscal 2000, we expect a number of factors to inï¬,uence sales growth at Harris Teeter. First, the Kroger stores we acquired in the third quarter in Greensboro and Winston-Salem, North Carolina will be open for the entire year and we expect sales there to be positively impacted by our promotional...

  • Page 12
    ... Store manager Christine Lawson (right) assists a mother-to-be in the frozen foods aisle of her Charlotte, N.C. store. Many Harris Teeter frozen foods departments have been relocated to the front of our stores after customers told us they prefer frozen goods near checkout. 8 Ruddick Corporation...

  • Page 13
    ...supermarket and textile industries. In terms of cumulative total return over a five-year period, including stock price appreciation plus dividends, we fell only slightly behind the index for retail food chains and far outperformed the index for apparel-related textile companies. Our compound annual...

  • Page 14
    ...scal year, Harris Teeter announced an important strategic development that assisted us in our ongoing efforts to strengthen our store base. During May, we sold 11 western Virginia stores to Kroger and also purchased 10 Kroger stores in the Greensboro/ Winston-Salem, North Carolina market.We reopened...

  • Page 15
    ... new line of Homemade ice creams is packaged in Harris Teeter's new "sqround" cartons, redesigned based on customer feedback. American & Efird: New Products and Foreign Sales are Keys to Growth New products and geographic expansion are two key elements of A&E's growth plan. At 1999 fiscal year end...

  • Page 16
    ... spending for Harris Teeter in 2000. Many Harris Teeter customers visit the store at lunch or on the way home to pick up delicious prepared meals to take out. Automated conveyor belts deliver A&E shipments directly to the truck where thread can be transported quickly and cost-effectively throughout...

  • Page 17
    ... such as inventory control, production planning and known loss tracking to help us achieve this goal. The variety and uniqueness of the offerings in our deli/ bakery/fresh foods area are significant reasons why customers shop at Harris Teeter. The restructuring and redesign of these departments that...

  • Page 18
    ...Customers appreciate the quality of Harris Teeter's produce, as well as the extensive wine selection. A number of our stores employ knowledgeable, fulltime wine stewards. cost-effectively. Careful analysis of sales data for specific departments also assists category managers in developing the best...

  • Page 19
    ...in 1999 and showed that our customer service ranked higher in most markets than that of our competitors. It is our goal to provide better service than all of our competitors in all Harris Teeter locations. Approximately 80% of Harris Teeter stores offer convenient branch banking for customers, even...

  • Page 20
    ... Ruddick Corporation R. Stuart Dickson Assistant Treasurer and Assistant Secretary HARRIS TEETER Fred J. Morganthall, II Vice President - Distribution John H. Rohr Vice President - Human Resources Allen D. Gilbert Chairman of the Executive Committee Ruddick Corporation Thomas W. Dickson Vice...

  • Page 21
    ... Corporation, 1800 Two First Union Center, Charlotte NC 28282. Telephone inquiries may be directed to 704|372-5404. Designed and produced by Collateral Communications, Inc. / Atlanta Arthur Andersen LLP Charlotte, NC NEW YORK STOCK EXCHANGE LISTING Common shares symbol: RDK STOCK TRANSFER AGENT...

  • Page 22
    Ruddick Corporation 1800 Two First Union Center Charlotte, NC 28282 704|372-5404 www.ruddickcorp.com