Harris Teeter 2001 Annual Report Download - page 9

Pages 4.5
we are building on our
core markets
Ruddick Corporation & Subsidiaries Harris Teeter
we are focused.| We are pleased to report that Harris
Teeter reported record operating earnings from core operations, excluding divested stores, in
2001. We achieved this success despite an economy that was drifting into recession for much
of the year. We are encouraged by what we did in 2001 because it positions us to be competi-
tive in what looks to be a very challenging economic environment in 2002.
The grocery industry, as fundamental as it is,
is highly competitive and constantly evolving.
Harris Teeter is committed to changing with
the times, but our focus remains constant:
we strive to maximize customer satisfaction
in a profitable manner. We operate our stores
to provide the customer with a shopping
experience that combines excellent customer
service with a wide selection of high-quality
food at a price that delivers value in a
competitive environment.
In July, we sold 26 stores, including all
of our stores in the Atlanta, Georgia market,
to several grocery chains. This was a highly
visible action that was derived from our
commitment to profitability. It had proven
very difficult to achieve our goals in those
marketplaces for a number of reasons, pri-
marily demographic and geographic. Harris
Teeter’s management expects that the dives-
titure of these 26 stores will now enable
the company to concentrate on core mar-
kets, which we believe have greater potential
for improved returns on investment in the
foreseeable future.
Asecond accomplishment, although
less visible to the investment community,
but undoubtedly obvious to our customers,
was the implementation of our best practices
program, which began to show results in