Harris Teeter 2002 Annual Report Download - page 6

HARRIS TEETER: BUILDING CUSTOMER LOYALTY
In 2001 Harris Teeter exited several non-core markets,
including Atlanta. This was a difficult decision, but we
knew that it was the right thing to do. It enabled us to
focus on our core markets, and during the year, we
opened 12 new stores, most of which were in markets
where we hold a prominent market share position. This
further cemented our leadership position, although it
resulted in some cannibalization of sales from existing
stores. Despite this cannibalization, and in an
environment where many other supermarket operators
experienced comparable store sales declines, Harris
Teeter comparable store sales were relatively flat. We are
pleased with this performance under the difficult
economic conditions and believe that it reflects well on
the execution of our strategic plans to drive customer
sales and customer visits.
We believe that our customers are loyal to us
because we provide them with everything they want in
their grocery shopping experience. We have attractive,
well-designed stores, the best selection of items,
especially produce and fresh meats and the best
customer service, all at competitive prices.
Our initiatives to improve sales and service did not
diminish our focus on improving our bottom line. We
successfully implemented and benefited from programs
designed to reduce waste and improve employee
productivity. The operating margin at our Harris Teeter
segment increased to 3.75%, reaching an all-time high,
despite the highly competitive supermarket environment
in which, industry-wide, margins declined.
We are proud of our many associates in our Harris
Teeter stores, whose efforts have produced these
significant improvements. Our selection process and
testing programs enable us to hire the best applicants
and they benefit from our ongoing training programs.
Their hard work and attention to customer service and
satisfaction have been instrumental in realizing our
operating improvements.
A&E: BENEFITING FROM OUR FOREIGN GROWTH
2002 saw a continuation of the trends in the textile
industry that had prevailed throughout recent years.
Demand for apparel and other textile products
Ruddick Corporation and Subsidiaries
annual report 2002
page
2
On May 1, 2002
the Ruddick
Corporation
announced that
R. Stuart Dickson
and Alan T. Dickson, Chairman of the
Executive Committee and Chairman of the
Board, respectively, retired as officers and
employees of the Corporation.
Stuart and Alan are valued for their vision,
their focus, their dedication and their practical
approach to business. We are truly grateful for
the leadership they have provided over the past
34 years. And we appreciate the continuity
and guidance that Stuart and Alan will
continue to give, as they remain a valuable
counsel to the management team.
R. Stuart Dickson has been Chairman of
the Executive Committee since February 1994.
Prior to that time he had been Chairman of
the Board of the Corporation since its
formation in October 1968.
Alan T. Dickson has been Chairman of the
Board since February 1994. Prior to that time
he had been President of the Corporation
since its formation in October 1968.
They will remain on the Board of Directors
and continue to serve the Corporation as
Chairman of the Executive Committee and
Chairman of the Board. In addition, they will
be available to management for strategic
advice and counsel.
We also want to express our gratitude to
John W. Copeland, formerly President of
Ruddick and American & Efird, and to Hugh
L. McColl, Jr., both of whom retired from the
Board of Directors this year. We appreciate
their guidance and knowledge, and their
contributions will be missed.
We are pleased that the vacancies on the
board have been filled by John P. Derham
Cato, President, Vice Chairman and Chief
Executive Officer of The Cato Corporation,
and Robert H. Spilman, Jr, President, Chief
Executive Officer and Chief Operating Officer
of Bassett Furniture Industries, Inc. These men
bring a broad range of knowledge and
experience to our Board and we look forward
to their advice and counsel in the future.