OCR Text |
Show Z ft Over the last year we've brought the most innovative business practices to Smith's stores in a concentrated effort at cutting our own costs. We've looked at every aspect of our operations, from data processing to lighting to produce racks, searching for ways to increase efficiency and service while saving time and money. You'll see the difference at the checkstand. To date, the result is a yearly savings of $28 million. This is not just a one-time savings, but a permanent reduction in our operating costs. Which means lower prices for you. And we're not through yet. We're still looking for more ways to economize. . We're committed to lower prices. We're promising that you'll never find another Utah supermarket with lower overall prices in meat, produce and grocery-the departments that are the most important to you. We're able to stand behind this promise because of our streamlined way of doing business. No change in service, variety and cleanliness. We're not cutting back on our friendly service, our outstanding variety or our clean stores-the things that make shopping Smith's a pleasant experience. With the large number of Smith's stores, it adds up in a hurry. Each of our employees is asked to pitch in with cost saving ideas. Here's what we've come up with so far: 1 . Eliminate company cars: $295,000 2. Centralize purchase of supplies: $ 1 ,300,000 3. Innovative display techniques for meat cases: $220,000 4. Innovative display techniques for produce: $792,073 5. Consolidate refrigeration in bakery: $155,800 6. Prototype construction savings: $683,000 7. Consolidate refrigeration in the service deli: $68,692 8. Service meat case consolidation: $3,500,000 9. Re-design store lighting: $2,000,000. 1 0. New store equipment standardization: $550,000 1 1 . Easier access to produce racks, reduce waste: $2,900,000 12. Safety program: Back braces, floor cones, etc-reduce down time: $410,000. 1 3. Eliminate salad bars because of low demand: $4,360,000 1 4. Re-merchandise juice bars: $1 ,500,000 1 5. Automate bookkeeping: $993, 1 20 16. More efficient method to stock grocery shelves: $1,135,000 17. More efficient method to stock non-foods shelves: $1,135,000 18. Reduce pages of weekly ad mailer: $120,000 1 9. Re-negotiate freight costs: $1 65,000 20. Innovative display techniques for service deli: $120,000 21. Automation of perishable inventory: $165,000 22. Automation of physical inventory: $210,000 23. Eliminate smokehouse and sausage kitchens in each store: $3,744,000 24. Outsource data processing to private company: $1,000,000 25. Reduction in airfare and travel expense (telephonevideo conferencing): $1,000,000 Total: $28,521,685 In the months ahead, look for our ads featuring Smith's employees who'll explain just how we've saved throughout our stores. Come in today. You'll see the difference. Prove ft to yourself. |