Hispanic/Latino BRG: “ Leveraging BRGs to Impact the Bottom- line Efforts”
Panelists Sonja Vega Buyer and Chair, Hispanic/Latino BRG Moderated by: Carolina Pulido Director of Learning Services, Retail Business Services 2
Hispanic / Latino Initiative 3
Our strategy 4
Hispanic/Latino Initiative & BRG Project Objective : Make Food Lion a convenient grocery store of choice for the Hispanic/ Latino shoppers while maintaining our current customer base. Strategy : Build profitable sales in high indexing Hispanic store locations through assortment, merchandising, targeted pricing, talent acquisition and Marketing elements. Value Proposition o Business Impact to Sales, Customers and Talent o Community Involvement o Inclusion to diverse communities o Learning and development opportunity for ALL participants 5
Hispanic/ Latino Initiative & BRG Project BRG Internal Business Partners Category & Merchandising on an Hispanic initiative focused on Fresh, Center Store and General Merchandise. o Strategic Positioning, i.e. variety, quality, service, sensory, signage, merchandising, etc. To generate mass awareness, partnered with Marketing on Signage, In Store Radio, Coupons, Email, Ad Flyer, recipe portal, kiosk videos, demographics. Partnered with Talent Acquisition to help recruit talented associates that reflect the communities and customer base Partnered with Retail Services regarding “Front-End Services” needed (i.e. bilingual associates, western Union, calling cards & phones available for purchase, signage, applications, etc. Partnered with Diversity & Inclusion in regards to Community Partnerships/ Events & Resources, Language Tools, Cultural Awareness and Associate Development (i.e. conferences, trainings, etc.), and demographics & representation. 6
CRITICAL MILESTONES Expand Assortment in Segment Voids (candy, snacks, drinks, grab n go, dairy, meat, magazines, greeting cards) Create Formal Promotional Plan Develop & Implement Pricing Strategy on Key Items Evaluate Hispanic Ad Flyer Create & Implement a Total Store International Assortment & Merchandising Strategy (Center Store + Fresh)
2H 2018 Assortment Additions Goya – 18 New items. Reset begins 10/15/18 Hispanic - 39 New Items. Reset begins 11/12/18
Metrics
2018 Hispanic Center Store Financial Summary KPI performance –Center Store Hispanic, Hispanic Frozen, Hispanic Dairy Current Period Status Period P08 Year to Date P08 KPI ACT BGT ACT BGT Sales +13.4% +7.5% +10.2% +7.5% Increased Market Share +99 bps +25 bps +50 bps +25 bps • Market Share Data for current period is IRI 4 wks ending 9/2/18 • Market Share Data for YTD through WE 9/2/18
Themed/Holiday Events
Fish Taco Event
International Drinks
National Hispanic Heritage Month Mocha Tres Leches Recipe
Day of the Dead
Value of the Hispanic Customer • Hispanic Buying Power has reached • Up 167% since 2000 • 91% more growth than non-Hispanic consumers Population Account for 50% of expected to double 18% of U.S. U.S. Population over next 2 Population & 22% Growth 2010-15 of U.S. Millennials generations Food Lion Target Customer 1 st and 2 nd generation of Hispanic/Latino of Mexican Descent
Fresh Focus Objectives Provide our Latino/Hispanic customers an offering that is relevant, fresh, and affordable, supporting our Food Lion strategy Leverage Latino/Hispanic BRG in creating plans to deliver our strategy
Produce Assortment Aloe Leaves Green Plantain Ripe Plantain Cactus Leaves Aloe Vera Juice 18
Produce Merchandising Merchandising Create a destination of Hispanic/Latino savory cooking items that allows customers to find the assortment they are looking for at affordable prices that delivers a better shopping experience, builds customer base and enhances Food Lion’s image. Display will take place of pistachio end cap Pistachios will be merchandised in a different location
Deli-Bakery Merchandising Deli Merchandising
Meat Merchandising Deli Merchandising Meat strategy – Merchandise product within current product flow
Hispanic Latino Pricing Deli Pricing/ Promotions • Identify items that mean the most to the Hispanic/Latino customer • Verify that our classifications of Image, Basket Builders & Enhancers are appropriate • Utilize competitive checks to Wal-Mart weekly • Potentially add competitive checks to Compare Foods (Minimum once a period) 22
Hispanic Latino Marketing Deli Marketing • Digital: Display/On-Line Advertising • In Store Radio Messages • Kiosk Videos • Utilize Hispanic/Latino Flyer in these stores • Tactics will begin in P10
Hispanic Ad Flyer • Great Everyday Prices • Hot weekly deals 24
Store #40 Non Garden Cooler 25
Store #1699 Garden Cooler 26
Panelists Sonja Vega Buyer and Chair, Hispanic/Latino BRG Moderated by: Carolina Pulido Director of Learning Services, Retail Business Services 27
& DIFFERENTIATION THE INNOVATION OPPORTUNITY Juan De Paoli SVP, Private Brands Retail Business Services, an Ahold Delhaize USA company October 2019
Providing services to six East Coast grocery brands : THE NEXT GENERATION OF GROCERY RETAIL PROMISE : To innovate solutions by leveraging scale and providing industry-leading expertise, insights and analytics to local brands so they can focus on serving their customers.
The local brands of Ahold Delhaize USA comprise the largest grocery retail group on the East Coast. 2,000 30 years stores across all brands as online grocery leader $43 billion+ 6 million+ sales annualized online grocery orders 95% 2 billion+ sales from DMAs digital offers in 2018 where an ADUSA brand has leading share* 30
Private Brands Portfolio 31
Customization for Segments: Multicultural Markets • Products in current sets to meet multicultural needs • Limited Time offerings: – Ex. authentic Italian line, fior fiore 32
Customization for Segments: Families with Children Ingredients parents can feel good about • No more than 500 mg of added sodium per serving • No more than 40% of calories from added sugar • No more than 10% of calories from saturated fat • One or more vitamins and/or minerals at 10% daily value or higher 33
Priority Focus: Sustainability • Nov. 2018: commitment to remove all artificial ingredients from private brand products by 2025 • Sept. 2019: commitment to remove priority chemicals of concern from private brands products and packaging • Ongoing product renovation and reformulation 34
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