• NS SAN DIEGO, Calif.
As part of its goal to relaunch and grow, on Aug. 26, the West Coast Chapter of the American Logistics Association (ALA) hosted a meeting, featuring chapter news and a talk with DeCA Zone 15 Manager Scott Hill.
OPENING REMARKS
Chapter President Ken Mays spoke to the virtual audience, and those in attendance, about the recent history.
“For those of you who don’t know who the ALA is, and what we have done over the years, the chapter went away for awhile after COVID,” he stated. “We kind of lost a lot of opportunity to have people present in the local chapter.
“Now that we have seen a resurgence … we have people who are interested, we have people who want to participate, and we have people who will help us to advance the business and grow sales.”
SCOTT HILL
Hill spoke about a number of topics relevant to Zone 15, including fiscal 2025 performance and a look ahead to the end of the fiscal year, which ends on the last day of September, and into fiscal 2026, which commences on Oct. 1.
“Zone 15 has a strong history in supporting its military community,” he told attendees. “We have supported the kids at Balboa Hospital and other events, and it is that collaboration and partnership between the DeCA folks and the ALA folks that is fundamental in getting us out year after year after year.
“Whatever we can do to facilitate success, you have my commitment, and I truly believe it is worth our effort, as a reflection of the military community.
Hill noted that the agency’s sales as the end of August approaches is at $4.3 billion, or up 2.28 percent.
“We have been on three very, very successful years,” he said. “Even with that, we are short of the agency’s goal of 2.3 percent, but we are hanging in there.”
As far as the area numbers are concerned, Hill told attendees the West’s 2.94-percent sales increase leads the agency.
“The West is leading in sales growth, and we are proud of that, and that is through partnership, and I appreciate the support that we have gotten to lead to that sales growth,” he said. “We have bragging rights for three years running, and that is very important, and is due to everyone’s hard work, by store directors and the ALA itself.”
Hill noted that sales were positive in all of the West’s six zones. “For instance, I am going to call out Southern California, which is up 2.62 percent.
“We are operating under great facilities now, with two renovations, and growth should be there.”
The zone manager said the daily sales chart for Zone 15 showed that Mondays are tougher days for sales activity than other days of the week.
“I am asking industry to come up with some ideas to make Monday a little more exciting,” he said. “It is an opportunity … Monday sales are against Sunday sales, and since Sunday is on the weekend, it is one of our biggest sales days of the week.
“This makes Monday a big challenge … so if you are out there, and looking at opportunities … events, special sales, whatever the case may be … ‘Monday Madness,’ I am really open to that, because that is a challenge.
“The peak days are paydays, but Mondays are a challenge.”
Customer count in the zone has fallen back over the recent past, and Hill is at a loss to explain it.
“For much of the year, this is a positive number, but for some reason, the number has fallen back that past four months. When I go into stores, I look at customer count and it has been softer recently.
“I can’t explain it, we go through normal rotation, troop deployment, training deployments, but it has been soft the past three months. It is hard to figure out.”
And he finds it most difficult to figure out because the sales per transaction has increased.
“That is exceptional, almost $5 per cart more,” he stated, with San Diego, for instance, posting $94 per cart. “Despite the fact that we have softness in the store, we are building the basket. Customers are finding what they need. This is a reflection of fill rates, merchandising, and in-store sales execution, so that is a super-positive,” with sales in the three major store categories — grocery, meat and produce — posting increases.
Hill does not necessarily believe that the increase in cart spending is directly tied into the increase in grocery prices across the board.
“Inflation is slowing down, so I don’t think the pricing has had a great impact,” he noted, as the fill rates are greater, and the items are being stocked, making them available to patrons.
“We have been executing at a high level now, and we continue to drive business,” he noted … “And we have the products out there at the right time.
“We are coming off a very successful Back-to-School period, and we have had successful programs in the store, such as the Procter & Gamble ‘ProCamps’ program.
Hill said the calendar ahead is an interesting one, and in his zone, sports will be the juggernaut for increased sales at these stores.
“September, October, November … we are very excited, because it is [San Diego] Padres baseball … they are tied for first place, and in this area, it is electric,” he told attendees. “Inside the stadium, outside the stadium … they are selling out all of the time. It is just an amazing time to be in this area.
“We want to capitalize on all the baseball favorites in our stores, so we have sidewalk sales in September … the majority held on the weekend following Labor Day, and into later in the month.
“We have a summer beverage package, and we have seen great success in that program.”
Hill said that right now, stores are also in a pre-Halloween period, and with pro and college football ready to begin their seasons, “there’s lots of stuff to do … it is the best sports time of the year —
“It is a great time for weekend gatherings. You have to have avocados for the weekend when people are watching football … and nobody buys just one.
“It is also ‘pumpkin spice time’ … I am amazed, and we are starting to already see it in our stores, but there is pumpkin spice products all over the place. Stores have three an four endcaps with pumpkin spice everything. And it is still summer vacation time.”
September is merchandising time related to execution for the remainder of the calendar year.
“Thanksgiving essentials, like baking products, and even candy corn. We have to be ready.”
The zone manager said stores are readying for the upcoming holiday season in the middle of a hiring freeze.
“There has been some relief, some exemptions, but I am going to tell you that some stores are short people right now,” he said. “One store is 25 people short.
“I am not putting it out there to whine about it, but we ask for your partnership and your collaboration and your persistence. We want to make sure that we are planned our for you with holiday merchandise the best that we possibly can.
“’Sell, baby, sell’ … we have to get off to a strong start for the new fiscal year. The first quarter in our business is super important, but to finish out this year, we would like to grow sales by 3 percent.”
ALA CHAPTER NEWS
Upcoming chapter events include the chapter’s holiday luncheon on Dec. 2.
May introduced the chapter board of directors and others who were in attendance at this meeting.
Among chapter board members in attendance were Diana Montes, Coastal Pacific, secretary; John Wilson, Coastal Pacific, treasurer; Eric Haber, OSCWebco, a board member; and Hector Lopez, another board member.
May also introduced Stephanie Supplee, Coastal Pacific, ALA national board chairman, and Debbie Kessler, Nestlé Purina, ALA national West Coast representative.
“If anyone is interested in being part of our board, feel free to reach out to us,” Mays told attendees. “Reach out to any of us to find out how to become a member of ALA. We will get you in and get you involved.
“By being a member of ALA, it will help your business, it helps you in being recognized in the industry … being recognized by the store directors, because you are participating in the advancement of the business.
“It is an awesome program.”
