Harris Teeter 2002 Annual Report Download - page 7

remained under pressure, especially domestically.
Many textile companies in the U.S. have declared
bankruptcy and others face difficult circumstances. It
is unfortunate, but a number of U.S. producers have
been unable to compete with foreign producers, given
the lower labor costs as well as the shift in production
away from the U.S.
Many of the steps we took in 2001 and earlier
years positioned us as a global supplier, and in the
fourth quarter of the year our foreign sales exceeded
50% of total A&E sales for the first time. We expect
this trend to continue as we focus on serving our
customers’ changing needs worldwide.
We operate in two highly competitive industries,
and we know that we cannot stand still or rest on our past
achievements. In both of our businesses we must meet our
customers’ needs and preferences. In the supermarket
business that means being convenient, and providing a
wide selection of high-quality items with the best service
possible. These same characteristics define our
relationship with our customers in the thread business.
We go where they go, we produce the best threads to the
highest specifications, and we meet our customers’ just in
time requirements, all at competitive prices.
As we enter fiscal 2003, your management team
fully recognizes that 2003 will present challenges.
Demand for textile products, which had shown some
improvement during the second half of fiscal 2002,
reversed trend and softened in September, reflecting
the weakness in domestic apparel and home furnishings
markets. The supermarket environment continues to
be very competitive and further improvement will be
especially challenging.
However, we are prepared for these problems. We
take a long-term approach to managing your company,
and we know that our strategies are sound and our
execution is capable. We realize that we cannot control
the economy or how our competitors react, but we can
control how we react, and we have the resources, the will
and the people to continue to execute our strategies.
Our mandate remains the same: we are dedicated to
increasing sales and profitability at our Harris Teeter
stores and will continue to focus on improving customer
satisfaction and employee productivity. Our success at
A&E requires that we continue our technological
improvements and provide our global customer base
with competitively priced, technologically superior
products. In closing, we know that challenges lie ahead.
We thank our associates for their contributions to
record achievements in fiscal 2002, and we look
forward to continued support of our associates and
shareholders as we enter fiscal 2003.
Thomas W. Dickson
President and
Chief Executive Officer
John Woodlief
Vice President – Finance
and Chief Financial Officer
Alan T. Dickson
Chairman of the Board
R. Stuart Dickson
Chairman of the
Executive Committee
Ruddick Corporation and Subsidiaries
annual report 2002
page
3
Thomas W. Dickson
President and Chief Executive Officer
Alan T. Dickson
Chairman of the Board