Harris Teeter 2002 Annual Report Download - page 8

Ruddick Corporation and Subsidiaries
annual report 2002
Our focus certainly remains on the customer.
We work to distinguish ourselves every day to create
customer loyalty and drive sales. While driving
sales is important, it must be done profitably. We continued
to make significant gains on our operating margins.
SELECTION, SERVICE & SAFETY = SALES & SUCCESS
We remain focused. We are pleased to report that Harris
Teeter reported record operating earnings and a
significantly improved gross margin, as a percent to
sales, in 2002. We achieved these results by focusing on
our core markets. Our progress validates our strategic
decision in 2001 to exit certain non-core markets
and to concentrate our energies on core markets that
offer us the best return on our investments. We enter
2003 in a stronger position than in previous years,
despite a weak economy, a highly competitive
supermarket environment, and continued pressure
from rising costs.
The grocery industry remains as competitive as it has
ever been, and our continued success depends on
executing a well-thought-out strategy. 2001 was a year of
transition and we divested 26 stores, including all of our
stores in the Atlanta, Georgia market. 2002 was a year in
which we built on the solid foundation that we had created.
We built new stores in Harris Teeter’s core markets to
solidify and to build upon our competitive position.
Our focus certainly remains on the customer. We
work to distinguish ourselves every day to create
customer loyalty and drive sales. Our VIC “Very
Important Customer” loyalty card program and VIC-
based promotions are tools we use to accomplish several
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market |building|loyalty
Unmatched customer service with courteous and friendly associates.Serving convenient locations in core and emerging markets.