Harris Teeter 2011 Annual Report Download - page 6

The Company’s business is not characterized as seasonal. Following the sale of A&E, all of the Company’s operations are
domestic.
Available Information
The Company’s Internet address is www.ruddickcorp.com. The Company makes available, free of charge, on or through
its website, our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments
to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and beneficial
ownership reports on Forms 3, 4, and 5 as soon as reasonably practicable after electronically filing such material with, or
furnishing it to, the Securities and Exchange Commission.
Item 1A. Risk Factors
This report contains certain statements that are forward-looking within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements are not guarantees of future performance and involve certain risks, uncertainties and
assumptions that are difficult to predict. Actual outcomes and results may differ materially from those expressed in, or implied
by, our forward-looking statements. Words such as “expects,” “anticipates,” “believes,” “estimates” and other similar
expressions or future or conditional verbs such as “will,” “should,” “would” and “could” are intended to identify such
forward-looking statements. Readers of this report should not rely solely on the forward-looking statements and should consider
all uncertainties and risks throughout this report. The statements are representative only as of the date they are made, and we
undertake no obligation to update any forward-looking statement.
All forward-looking statements, by their nature, are subject to risks and uncertainties. Our actual future results may differ
materially from those set forth in our forward-looking statements. We face risks that are inherent in the businesses and the market
places in which Harris Teeter operates. The following discussion sets forth certain risks and uncertainties that we believe could
cause actual future results to differ materially from expected results. In addition to the factors discussed below, other factors
that might cause our future financial performance to vary from that described in our forward-looking statements include: (i)
changes in federal, state or local laws or regulations; (ii) cost and stability of energy sources; (iii) management’s ability to predict
accurately the adequacy of the Company’s present liquidity to meet future financial requirements; (iv) continued solvency of
any third parties on leases the Company has guaranteed; (v) management’s ability to predict the required contributions to the
pension plans of the Company; (vi) the Company’s requirement to impair recorded long-lived assets; (vii) changes in labor and
employee benefit costs, such as increased health care and other insurance costs; (viii) ability to recruit, train and retain effective
employees and management; (ix) the extent and speed of successful execution of strategic initiatives; (x) volatility of financial
and credit markets which would affect access to capital for the Company; (xi) the Company’s ability to pass along product cost
increases through increased sales prices and, (xii) unexpected outcomes of any legal proceedings arising in the normal course
of business of the Company. Additional risks and uncertainties not presently known to us or that we currently deem immaterial
also may impair our business operations and also could cause actual results to differ materially from those included,
contemplated or implied by the forward-looking statements made in this report, and the reader should not consider any of the
above list of factors and the following discussion to be a complete set of all potential risks or uncertainties.
The Supermarket Industry is Highly Competitive.
The supermarket industry is characterized by narrow profit margins and competes on value, variety, location and service.
Harris Teeter faces competitive pressure in all of its markets from existing competitors and from the threatened entry by one
or more major new competitors. The number and type of competitors faced by Harris Teeter vary by location and include:
traditional grocery retailers (both national and regional), discount retailers such as “supercenters” and “club and warehouse
stores,” specialty supermarkets, drug stores, dollar stores, convenience stores and restaurants. In addition, certain Harris Teeter
supermarkets also compete with pharmacies, florists, book stores and local coffee shops. Aggressive supercenter expansion,
increasing fragmentation of retail formats, entry of non-traditional competitors and market consolidation have further
contributed to an increasingly competitive marketplace.
Additionally, highly competitive markets and economic uncertainty have made it difficult generally for grocery store
operators to achieve comparable store sales gains. Because sales growth has been difficult to attain, Harris Teeter’s competitors
have attempted to maintain market share through increased levels of promotional activities and discount pricing, creating a more
difficult environment in which to achieve consistent sales gains. Some of Harris Teeter’s competitors have greater financial
resources and could use these resources to take measures which could adversely affect Harris Teeter’s competitive position.
Accordingly, Harris Teeter’s business, financial condition or results of operations could be adversely affected by competitive
factors, including product mix and pricing changes which may be made in response to competition from existing or new
competitors.
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