| Shaw’s continues to
be a strong performer
in the US despite difficult
economic conditions. With
total sales up 1.2 per
cent (in dollars) and
like-for-like sales1
up 0.9 per cent, performance
is in the upper quartile
compared to other US food
retailers. |
| |
| During the year we improved
32 of our 185 stores and
successfully bid for 17
former Ames department
stores. In 2003/04 we
plan to increase selling
space by 15 per cent.
Our Prudential Center
store opened in April
2003 and is our first
flagship store in central
Boston and focuses on
creating a dynamic fresh
foods department with
a strong emphasis on food-to-go
in our La Carte Department.
This ongoing development
programme will consolidate
our position as New England’s
second largest food retailer. |
| |
| Shaw’s now has over
5.4 million cardholders,
capturing 89 per cent
of all sales. Over 70
per cent of customers
use a Rewards Card, making
the programme one of the
top US performers. Since
September 2002, using
our experience in the
UK, we have also mined
customer data and produced
customer profiles to implement
targeted marketing activities,
increasing promotional
effectiveness and tailoring
product ranges and choice. |
| |
| We are also sharing
the development of cost
efficient processes. In
the UK we have saved around
£15 million by purchasing
a range of goods through
on-line auctions via the
Global Net Xchange (GNX).
In early 2003 Shaw’s made
its first purchase through
a GNX auction and has
now conducted 39 on-line
negotiations. |
| |
| Shaw’s
Supermarkets analysis |
| 2003 |
2002 |
 |
| Sales
2 |
$4,436m |
$4,385m |
|
| Underlying
operating profit
3 |
$215m |
$196m |
|
| Number
of stores |
185 |
185 |
|
| Sales
area (000 sq ft) |
6,330 |
6,261 |
|
| Full-time
employees |
9,400 |
9,700 |
|
| Part-time
employees |
18,100 |
18,700 |
|
|
| |
| |
| |
| Looking
forward |
| |
| The coming year will
be a period of huge change
in our UK Business Transformation
Programme and our aim
remains to balance profit
growth with sales growth
while investing in our
business. Following the
softer sales performance
in quarter four we have
taken action to improve
sales with a significant
investment in customer
service creating 10,000
new jobs, launched a major
campaign on fresh food
consolidating our lead
in this area and will
be following with our
non-food launch in the
autumn. |
| |
| We believe we have a
strong case for being
allowed to bid for Safeway
plc as our differentiated
offer of quality products
and greater choice at
competitive prices offers
a real alternative to
price based operators.
We believe there will
be significant change
in the food retailing
market and we are poised
to take advantage. |
