Feb 26, 2014|
Automatically Generated Transcript (may not be 100% accurate)
Kevin -- Tennessee -- tops markets is with us on the WB and land -- were talking about rising food prices and flat incomes haven't good morning. Good morning you know based on our web poll this morning the biggest bloc of voters are telling us. That they are price shopping and using coupons right -- to what percentage of -- shoppers used coupons. I'm actually a very high percentage we we encourage all of our consumers to really take advantage of all the ways to -- especially during periods like this where we have rising food prices. So whether it's the gas program whether it's coupons that we offer on our web site. Whether it's coupons manufacturers offer in the unit -- we -- we actually encourages it to for all households. You know speaking of brands mr. -- and you know we're wondering about store brands -- name brands. A lot of earlier guests that you can find store brands that are exactly the same as a brand name product. But yet they don't seem to test the same when we're talking about food what's the real story -- store brands through his name brands. So as we talk about tops. Name brand. Obviously the formulation in food big goes into it whatever you're buying it formulation isn't exactly what the national brand is there can be a suitcase difference. What we try to do it Thompson is we try to say -- Thompson being green and is compared to what. So for example we're talking catch up if you have -- -- opening of the -- named -- and if that has been an art vendor of choice to kind of formulate our product after we will see it right on the bottle this is like. Heintz ketchup it may not taste like hunt's ketchup. It should taste like the national brand that we kind of formulated after no different than their peace between brilliant brilliant. Innards is that the trend showing that a lot of top shoppers are picking that Topps brand. Over the name brand. And we take a look at it for a us you know since we go to market almost every single week with hopefully deals that you see kind of best in class. What you find is -- Choppers will kind of take a look at their shopping list and say what are my national bring -- favorites that I just must have those are on the list. -- -- categories were there and maybe not as brand loyal they will apps will be shift over into the top story and because the value and price on situation. The other thing that can sector and is obviously what kind of coupons around in the market. If bumped from your national -- players are really putting a lot of coupons in the market obviously the consumers will take advantage of that and put that into their household formula. To try to maximize their food dollar. Are a lot of top shoppers taking advantage of league the gasoline discounts when using there on top money saving. Those little plastic things and of scandal the cash -- register. Absolutely you are tops bonus card when you use their -- bonus plus every coach's speech you make. Actually gives you discounts of the gas -- so it is absolutely the biggest discount that we offer and it's offered everybody who has the -- bonus plus car. In addition you know consumers tried to look at other ways to save money on our meal deal programs. You know when you have -- food costs going up especially in the areas you know beef and other center of the plate items. What customers are looking for is. How to what kind of package in the entire -- meal may be a little bit cheaper and more on my budget. And you know by just putting together a package where you buy a protein of -- items for your seder plate and then. Us throwing it and free items to kind of finish that meal. That's another way to kind of take advantage of you know your dollar and make eagle but further. Some customers who have complained. They should get a little bit more time to use their bonus. Aghast discounts and other words we got a buck off of a gallon of gas which is pretty pretty substantial. But yet it'll expire on a certain -- why can't that -- extended a little bit. As we take a look at it you know unfortunately this is one of those -- accounting problems that she just try to keep people continually. Bump up to date on their points. As you take a look at it you know our program is you have six weeks stern and then you actually have two extra weeks to redeem -- -- an eight week shopping period. You know we kind of followed this for the last -- ten years or so and if you take a look at it. We try to keep customers coming back to the pump when you think about most shoppers are in the supermarket. At least once a week sometimes twice a week. We hope that they have many opportunities during that period of time to actually redeem their -- points. And leaving the last two weeks where they really are not earning but they're just redeeming that allows them to zero out those balances before we move on to the next cycle. Kevin I'm just thinking you probably know this when you were talking that they name brand -- generic. What categories. Are people not so brand loyal. You know as you take a look at it it's funny it's not food categories where we have probably our lowest penetration of private label were top spree in products is actually in health and beauty -- You know people get accustomed to a certain kind of so certain kind of -- a certain kind of shampoo and conditioner. It's seems that there are much more Korean loyal and those health and beauty areas. In more of the traditional food commodity places used to do see more switching but if there's a difference it's definitely kind of health and beauty. Interest and Kevin thanks so much for joining us this morning appreciate it. Thank you very much appreciated that's Kevin Darington CEO all of tops markets.