Harris Teeter 2000 Annual Report Download - page 10

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discount supercenters, and to focus on achieving the sales growth
potential in some of our non-core markets. Targeted sales and
specially designed promotions allow us to offer customers incen-
tives to do all their shopping at Harris Teeter. In anticipation
of customer needs, we also developed Express Lane, our online
shopping program which invites customers to order their
groceries through our Web site and pick them up at a drive-
through lane at their store. In this way we believe we can offer
superior convenience to those who prefer to shop on the
Internet while maintaining a reasonable return on our investment
for shareholders. While the site was new at year end, initial cus-
tomer response has already been enthusiastic.
American & Efird: Increased International Sales
Even with the continuation of weak sales in the United
States, A&E made more progress in strengthening foreign sales
and building the infrastructure to support them. Sales outside the
U.S. increased by 14% and accounted for 34% of total sales in
fiscal 2000. Much of this growth came from Latin America,
where A&E opened four new distribution centers and enlarged
our sales staff.We established joint ventures in Mauritius and Sri
Lanka, our first entry into the vast Indian subcontinent market.
In addition, we opened a new sales and distribution facility in
Poland and achieved a majority ownership position in our joint
venture in the Dominican Republic. In keeping with our goal of
further diversifying and extending our product lines, A&E
achieved growth in our filament, or non-apparel, thread products.
Included in these product lines is Anequilt™, a new filament
product for the quilting industry, and other ready-wound bobbins
for lock stitch sewing.
New Internet-Based Order System
During fiscal 2000, A&E completed the basic function-
ality for our business-to-business order and information system,
called ANESYSTSM. It is a state-of-the-art, Internet-based system
designed to make information gathering and order management
simpler and more efficient for our customers. It improves com-
munication, minimizes mistakes, helps reduce order entry and
delivery times, and helps customers better control inventory. In
addition, A&E completed customer trials and the development
of marketing materials for our new line of embroidery thread.
Signature®is a polyester embroidery thread which has been
proven uniquely superior in numerous customer performance
trials and is ready for an aggressive rollout. In addition to the
development of new products, A&E actively and continuously
explores new market opportunities around the world.
An exciting new market for
Harris Teeter is northern
Virginia/Washington D.C.,
where we opened our first
two stores during the year.