Harris Teeter 1998 Annual Report Download - page 14

Ruddick Corporation
and Subsidiaries
12
remain some of our highest priorities. Over
the years, Harris Teeter has built a tremen-
dous reputation for the best, freshest and
greatest variety of deli/bakery/food ser-
vice products. We are now evaluating a
number of alternatives for the production
of these items and we are experimenting
with various departmental prototypes.
We listen to the needs of our customers
in specific locations and remain flexible
and innovative in our individual store for-
mats. We can therefore respond quickly to
changes in consumer trends. In early fiscal
1999, Harris Teeter will open our first
smaller prototype, located on a popular
route home from the downtown area in
Charlotte, North Carolina. While focusing
on prepared and takeout foods, this new
11,900 square foot store will also carry an
assortment of dry groceries.
In May of fiscal 1998, Harris Teeter
completed the $43 million expansion of our
distribution facilities, which accomplished
two goals. By making our Charlotte and
Greensboro warehouses redundant for dry
grocery and medium temperature goods,
enough savings in transportation costs were
realized to offset the increase in overhead
expense. At the same time, our distribution
facilities are now large enough to handle
our currently forecast growth needs.
Opportunities
We recognize that it may be difficult to
match our same store sales growth rate of
fiscal 1998 in fiscal 1999 due to the current
competitive environment. However, we are
confident in the continued success of our
promotional and merchandising activities
and we expect to open approximately
nine new stores in 1999. We look forward
to better execution of work processes and
consistent implementation of best prac-
tices. We are prepared and eager to move
forward toward our goal of being
“absolutely the best grocery retailer as
measured by each and every customer.”
Many Harris Teeter stores
offer a wide and dis-
tinctive variety of wine
and cigars.