Harris Teeter 1999 Annual Report Download - page 8

(L-R)
Thomas W. Dickson, President
Richard N. Brigden, Vice President – Finance
R. Stuart Dickson, Chairman of the Executive Committee
Alan T. Dickson, Chairman of the Board
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Ruddick Corporation and Subsidiaries
LETTER TO OUR SHAREHOLDERS
Fiscal 1999 was a year of solid achievement for Ruddick Corporation, with both subsidiaries showing
measurable progress towards attaining their short- and long-term goals. It was a year that saw further consol-
idation in our industries, presenting challenges and opportunities for both Harris Teeter and American & Efird
(A&E). Both companies continued to focus on improving customer service, productivity and profitability in
order to compete effectively in this changing competitive environment.
HARRIS TEETER
Consistent with our efforts to strengthen 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 operating profits in this fiscal year, we believe it was an excellent long-term strategic oppor-
tunity. In addition, we purchased three former A&P stores in Atlanta, Georgia that will open in fiscal 2000.
Harris Teeter also expanded its market boundaries this year by opening two stores in the Jacksonville, Florida
area, our first stores in that state, and by opening our first store in November of 1999 in the northern
Virginia/Washington, D.C. market.
Central to Harris Teeter’s success is the ability to offer the highest levels of customer service, and we
achieved a measurable increase in service this year. Our measurement of customer satisfaction showed that we
continued to improve both in comparison to our own past performance and to that of our competitors in most
markets. As a result, Harris Teeter this year was able to demonstrate that improvements in customer service
can be attained while also improving profitability through productivity gains. Excluding the decrease in oper-
ating profits related to the store divestitures and purchases, Harris Teeter was able to continue the expansion
of its operating margin and operating profit per square foot.
Harris Teeter continued to focus on better execution at the store level.To help us achieve this goal in fis-
cal 1999 and beyond, we implemented a variety of initiatives in our stores that have proven successful in test