Harris Teeter 2004 Annual Report Download - page 8

A COMMITMENT TO SU CCEED
A
neighborhood supermarket occupies a unique space in American culture.
It is at once a place of familiarity, of stability, of institutional quality. At
the same time, it must be ever-changing, dynamic, responsive to customers’
needs, and profitable. And if a company runs more than one supermarket,
the job becomes even more complex, because no two neighborhoods are
the same.
How does H arris Teeter do it? Through careful attention to detail, superior customer
service, well-trained and motivated associates, and a corporate culture that encourages
adaptation to an ever-changing environment.
The benefit of this approach is evident in our results for 2004 — a year that was difficult for
retail in general and the supermarket industry in particular. Sales rose 5.8 percent to $2.6
billion from $2.4 billion in 2003. Operating profit increased 11.5 percent to $104 million,
compared to $94 million in 2003.
An important component of these results — and one that shows the success of our ability to
adapt and attract new customers to the existing store base — is comparable store sales, which
rose 2.97 percent during 2004.
Increasing comparable store sales takes hard, disciplined work. One of the keys to Harris
Teeter’s success is the effort we expend to learn from our customers, what they want and
when they want it. We do this in a variety of ways, not the least of which is through our Very
Important Customer (VIC) program, which gathers shopping data that helps us know what
our customers are buying — and not buying.
This information combined with other sources regarding current trends allows Harris Teeter
to continually adapt its merchandising strategy and product assortment in each department
to meet our customers’ changing needs and desires.
Another key to success is Harris Teeter’s reputation for high-quality perishables, which is one
of the best in the industry. Our desire to enhance that reputation in the eyes of our
customers led us to introduce H arris Teeter Reserve®Angus Beef, which is specially grown
and selected for Harris Teeter. H arris Teeter Reserve®Angus Beef, combined with the
ongoing success of our H arris Teeter Rancher®beef program continues to win high marks
from customers and has resulted in higher fresh meat sales.
Ruddick Corporation & Subsidiaries Annual Report ’04
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