Harris Teeter 2006 Annual Report Download - page 5

2Ruddick Corporation & Subsidiaries Annual Report 2006
accelerate new store openings should result in more store openings during the first
part of the fiscal year than we have historically accomplished.
Customer service and quality are essential components of the total value
proposition we offer at Harris Teeter. We focus on customer service from the very
beginning, as we evaluate potential store sites and recruit and train our associates.
The demographics of the surrounding market for a new store are analyzed to
determine what store format and product offerings will best serve the customers who
live there. We also go to extra efforts in our recruiting process to determine that any
new associate will be customer-service oriented and have the proper qualifications for
their position.
Customer service means identifying new trends and anticipating our customers’
wants and needs for new items. Whether it is continuously expanding our natural
and organic food selection, adding hot food bars or enhancing our fresh seafood
departments, we focus on staying ahead of our competitors in meeting our customers’
present and future needs.
Customer service also entails providing our customers with a full selection of
top-quality merchandise at reasonable prices. The product offerings for a particular
Harris Teeter location are driven by the customers’ preferences in the surrounding
neighborhoods. We have continued to utilize the Harris Teeter Very Important
Customer (VIC) rewards program to help us determine those local preferences and
create superior value for our customers. Not only does the VIC program create
excitement through special pricing and frequent shopper rewards, it also enables us to
gather information to individually merchandise each store within our local markets.
Our attention to detail and commitment to customer service and quality has
resulted in another record year for sales growth and operating profit at Harris Teeter.
Total sales for fiscal 2006 grew by 10.5% and our comparable store sales increased
3.20%. During fiscal 2006 we also improved our operating profit margin by 8 basis
points to 4.37%. These record results were achieved at the same time we accelerated
our new store opening program.
We made substantial progress during fiscal 2006 in our transformation of
American & Efird. During this past year we focused on expanding our operations in
John B. Woodlief, Vice President –
Finance and Chief Financial Officer
Frederick J. Morganthall, II,
President –Harris Teeter
Fred A. Jackson,
President – American & Efird