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1 Nash Finch Companies Buy & Save Video Script = =The video will take place in a Buy & Save store and will be narrated by an actor playing a Buy & Save manager.= = Welcome to my store it may look a little different from other groceries that you ve shopped at, but that s because it IS different; it s a Buy & Save, a new style of food store concept brought to you by Nash Finch. Buy & Save stores provide an alternative to traditional supermarkets by carrying a limited assortment of quality products at the lowest retail price in the market. These low prices are available to customers because of the lower cost structure of the Buy & Save system. Let s take a look at these two shopping carts, each of which holds the same number and type of products. The cart on the left holds basic grocery products from national brand companies; the cart on the right holds the same items, but in generic form or as name-brand products with special pricing. The cart on the left will cost a shopper (number) at the checkout lane, while the cart on the right will cost (number), a saving of 40%! Many factors enable Buy & Save to provide such low-cost grocery items. Product selection in all areas is limited the average supermarket offers (number) items for sale, while a typical Buy & Save will have 950 items on its shelves. The store is smaller from 9,000 to 14,000 square feet in the selling area. Bread and milk are provided by outside vendors, not DSD. The store itself is designed for high efficiency, by presenting products on pallets and in case boxes with the fronts cut out; simple display bins hold seasonal items. The lower cost of operations is also reflected in a lower startup cost for the potential owner of a Buy & Save franchise. This operation is designed to attract cost-conscious shoppers for whom low prices are a critical factor in selecting a food store. The target customer has a household income of under $35,000; the geographical marketing area for each store will be large, with in-store handouts being the main marketing vehicle. Cost comparison with traditional stores could be a standard approach when creating store handouts. The Buy & Save pricing philosophy is designed to keep merchandise moving quickly out the door without compromising the quality of the products. The General Manager and Manager of Merchandising perform all

2 pricing for all stores; no pricing will be done in the store except on items reduced for quick sale. This policy applies especially to products that will expire within a week, and all markdowns will need to be approved by the General Manager. In most cases, the item would be marked half price and customers would be alerted to this by a S.T.O.P. sign items that expire in less than a week will not be sold without the consent of the G.M. Because Buy & Save emphasizes a 100% money back guarantee, it s important that mark-downs are tracked carefully and invoices are compared with shelf prices on a regular basis the reputation of the store depends on it. The average Buy & Save has ten to twelve employees, with job roles of Manager, Assistant Manager, Perishables Manager, Stocker and Cashier roles that are similar to a traditional grocery store. What s different is the heavy emphasis on cross training in the Buy & Save system. Every employee is expected to participate in an expanded role, especially when it comes to every day store maintenance. Because merchandise moves quickly, dealing with all the cartons is an on-going project. Every employee needs to be ready to pitch in and control the cardboard no one should head to the back of the store without a box or two in their hands. Nash Finch has designed a set of Standards of Excellence to clearly state the Buy & Save system and philosophy. The first series describes six human characteristics that enable the store to work well. Employees need to be product minded, customer minded, personnel minded, detail minded, stable and especially open-minded. Next, there are five basics to increase sales they are quality, cleanliness, stock level, signage and pricing and importantly, customer service. Finally, Buy & Save emphasizes three business basics to increase profits: Merchandising, cost control and shrink management. This new concept store from Nash Finch offers low startup and operating costs, making it an attractive franchise opportunity. Because of its size, the store can be opened in a variety of secondary locations; because of its simpler structure, it can be opened and operating in a shorter time span than other, more traditional supermarkets. Buy & Save is a great new store concept from Nash Finch this greatness comes from the fact that when a Buy & Save moves into the neighborhood,

3 everybody wins. The owner has an opportunity to buy a franchise at a great price. The employees have a chance to feel part of a team and stretch their abilities in extended roles. And finally, the customer benefits from the great low prices and convenience of a smaller store setting and speedier shopping experience. I m proud to be a part of the Buy & Save experience and I know you would be too. = = Music up and fade to black for a few seconds to pause = = Welcome to the Buy & Save employee team. In the next few minutes, we ll explain the Buy & Save concept to you as we demonstrate the operational aspects of the store. Buy & Save is different from traditional groceries because we carry a limited assortment of quality products in a smaller store setting and at the lowest retail price in the market. This stores hours are 9:00 AM to 8:00 PM, Monday through Saturday. On Sunday, the hours are 9:00 AM to the 6:00 PM closing time. A customer s shopping visit might look something like this: In the parking lot, they can see current store specials written on the front windows as they walk towards the store. Inside the door, they would pick up their cart, and examine the sales flyer to check for any other discounts they might be interested in. The first thing they see are the special display bins and cartons which contain discounted and brand name products on special. The customer continues through the aisles, which consist of open cartons of items and cases stocked with a limited selection of meat, dairy and produce. When they have finished shopping, the customer proceeds to the checkout, where the groceries are processed through the lane and into another cart. Finally, the customer bags their own purchases in bags brought from home, or in the boxes made available at the front of the store. As you may have noticed, merchandising in a Buy & Save is handled a little differently than it is in other food stores. Products are mostly left in the cases in which they arrive, with the tops and front cut out so customers can see the product. The dividers are removed to reduce the amount of cardboard in the aisles. Whenever possible, stock should be left on the pallet to save time. The display bins for the special items should be changed regularly to move merchandise quickly and increase sales. The job of stocking involves building these displays and maintaining them. Beginning in the backroom, the stocker is responsible for organizing the

4 area, including the cooler and freezer, keeping the stock moving into the store and leaving little or no backstock behind. The stocker must keep a sharp eye on the code dates, rotating stock so there are no out of date products on the shelves. On the floor, cases of the same product are stacked on top of each other, and the top case is handled in this way: carefully cut the top out, making sure the knife isn t cutting too deeply and damaging the product inside. Then cut the front side of the case, so the items inside are visible; rotate any items that don t have their labels facing forward, so the customer can read the label and identify the product. Remove the cardboard inserts in the box, and take the excess cardboard back to the baler in the backroom. Cleaning as you go is very important in this type of store, so you should always make sure you pick up extra cardboard and take it with you every time you head to the back the motto should be, Full Hands In, Full Hands Out. The stocker is also responsible for creating signage for the shelves remember, most of the advertising for Buy & Save happens at the store, so it s your job to keep the shoppers informed about prices and specials. Specials can happen when the products date codes are at a week or less, so you need to keep an eye on these dates and inform the manager when the dates are at this point. These items need to go on special right away, to ensure that product quality is kept high, and waste is kept low. If a date expires, quickly move the item to the back, separating perishables into the freezer and cooler until properly disposed of. The cashier is the main customer contact for the Buy & Save store, so they need to be conscious of giving good customer service while being efficient at the checkout lane. The store accepts credit cards, food stamps and manufacturers coupons, so the cashier needs to be flexible and friendly; because customers bag their own groceries, cashiers need to direct them to the bagging station and point out the boxes that are available for packing their groceries into. All employees at Buy & Save need to be especially aware of customer service. We have a system called GREAT to help you do just that.. Whenever possible, Greet customers when they enter the store a smiling face will make them feel welcome.

5 React to customer requests. If a customer has a question, help them by offering solutions. Escort a customer to an item if they ask where to find something. Anticipate customer needs. If someone looks confuse, ask questions and see if you can help. Thank each customer as they leave the store. That will go a long way to building a repeat business. By following the G.R.E.A.T. program, Buy & Save stores will increase performance as they build a loyal customer base. At our stores, items aren t always in the same place they are also constantly changing as name brand specials move in and out of the store, so you must be prepared to answer a lot of questions about product location. If a customer asks for a product that the store doesn t carry, be prepared to suggest an alternative, especially if it s a sale item. Part of good customer service is maintaining the dress code as stated in the employee handbook; this helps identify you as an employee, which is useful to the customer. Employees should also be aware of safety and security issues at the store. Pay attention to company procedure when opening and closing the store by following the checklist set up by your manager. Keep your eyes open while working to prevent shoplifting; if your store has a security camera set-up, make it a habit to glance at the screen when it is in view. If you observe any unusual behavior, go quickly to your manager and report it. It s up to every employee to keep the store safe, and fellow workers and customers injury free. Keep the floors clear and free of cardboard. Promptly mop up spills to prevent slips, and keep any rugs clean and flat to prevent tripping. Check the merchandise for damage to prevent cuts and tainted food. Ensure that coolers and freezers are at the prescribed temperature, and watch the quality of incoming perishables for spoilage. Finally, special care should be taken around the baler. Follow instructions carefully when operating the baler and keep your hands away from it while it is in use. Building Maintenance schedules should be followed to ensure that the Buy & Save store functions smoothly and safely. Floors should be thoroughly

6 cleaned weekly, with traffic areas mopped on a daily basis and spills cleaned up immediately. Rugs should be vacuumed on a similar schedule; windows should be kept clean to project a good image to the public. Cleanliness is important behind the scenes too keep the bathrooms and breakrooms clean. All employees should wash their hands thoroughly before handling food and after using the restroom. Because of the warehouse-style Buy & Save system, it s important to keep cardboard under control by using the baler frequently. Space is at a premium, and backups quickly fill the store with stacks of cartons and inserts. Ask your manager to train you on the proper operation of the baler. Nash Finch has provided Buy & Save with a series of employee manuals to keep everyone informed of procedures and standards. If you have a question about anything relating to your job, check out the manual or ask your manager for help. We re happy that you re a part of our team. At Buy & Save, we all work together to run the store and each person s contribution is especially important. If you have any questions, ask your manager now; keep your manual on hand to refer to in the future. Once again, welcome to Buy & Save!

7

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