ON SHELF AVAILABILITYJoe PellegriniASMT-D280\Central Phoenix-STR03769

OSA S.M.A.R.T GOAL Specific: Achieve higher sales per customer $20 to $30, 85% to 95%

Scanouts, accurate counts, consistent 100% smart counts, and Store Condition during a 3-6 month period may take longer. This will cover the backroom and the floor

Measurable: KPI Outs/Order Review, smart counts, sales trend counts, policy implementations

Attainable: Goals set out are attainable Realistic: Fixing OSA in this store will take at least 3 to 6 months maybe

more. Should show steady improvement 1 to 2 months Timely- Goal is to get OSA fixed in 3-6 months

03769'S PROBLEMS WITH OSA SMART COUNT WASN'T GETTING COMPLETED SCANOUTS WERE INCONSISTENT BACKROOM ORGANIZATION NEEDED HELP STORE CONDITION NEEDED HELP TOO MANY OUTS ON THE FLOOR EXCESSIVE 1506 WE DIDN'T KNOW ABOUT (ITEMS EXPIRED SOON OR

ALREADY EXPIRED BOTH IN STORE AND BACKROOM) NON BASIC ITEMS IN THE WAREHOUSE NOT BEING SOLD OFF INVENTORY BEING MISPLACED

THE PLAN Fix the counts on a step by step basis Do scan outs on a regular basis Pull and work red carts Check lows and outs/tons Organize backroom and rearrange to where food and beverage is easy to

access since 3769 is a food store Communication: Create signs such as (to be worked, reset, to be binned,

etc)

IMPLEMENTATION Proposal to management at 3769 to buy in Creating signs for backroom communication Smart Counts/Price Changes on regular basis checking lows and outs and tons stocking outs and zoning Communication to the team members/leadership in meetings and 1/1

UNEXPECTED FACTORS Initiated the "no public restroom" policy with exceptions (Store Manager

approval) Trouble with the Buy-in of the plan Problems with instock beverages/juices, cooler, and freezer Staffing problems\scheduling issues Staff lackadaisical Leadership Conflict Store Manager Change Granted half of an overnight to try and fix backroom

NEW LEADERSHIP Plan Paused New Store Manager's goal aligns more with OSA Cosmetics and Food bays switch Original plan to move vendor and water implemented Better concept and routine of smart counts and scanouts Backroom still in the same state Communication issues still present More focus on 1506 in more areas Changes ongoing unclear future

RESULTS-SMART COUNT

RESULTS-SCANOUTS

RESULTS-SOLUTION TO MISSED SCANS

RESULTS-SALES TREND COUNTS

THE PLAN 2.0 (UPDATED)- 1 or 2 overnight shifts Clearance any non-basic from the backroom Check for outdates in the backroom Making sure there's a mylar (even items with prices) Cross train, Cross train, Cross train Have more accountability More coaching check up on the progress + everything from the original plan Live at 3 zoning

EXPECTED OUTCOMES More accurate on hands Less Shrink More Organization Increased Team Member Engagement Higher Profits and Sales Better Communication Increased Teamwork

SUMMARY Buy in very important Management support Describing plan in detail to whole team Change doesn't happen overnight Continuous coaching Giving feedback and recognition

ANY QUESTIONS?