Progressive Grocer Independent

AUG 2016

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20 | Progressive Grocer Independent | August 2016 Piggly Wiggly Alabama Distributing Co. the owners' stock or is placed in 10-year notes, both with 7.5 percent interest, depending on the option the owner chose when joining the co-op. Retailers also receive patronage divi- dends on all of their purchases that are invoiced through the warehouse. In addition to all of the service benefits of the co-op, it acts as a retirement fund. "When you're a member of a co-op, you build up notes, you build up stock," McCann says. "en, when you want to sell and retire, you have a built-in retire- ment. at helps on the budget." Bullard also is continuously work- ing on how to bring more efficiencies into the warehouse, including work- ing on aggregate buying opportuni- ties with other co-op distribution companies. PWADC is currently working with 10 other warehouses on a holiday promotion with Kraft products. "What we're trying to do is show the power of when we can harness all of this buying power and what we can achieve if we work together," Bullard says. Advantageous Services While the buying power of a warehouse is attractive, many retailers turn to PWADC for the other services it provides. One of the most important is the pricing program, which all of the owners use. e warehouse of- fers seven price zones and customized retail item pricing if the retailer doesn't like any of the price zone options. About 25 percent of the warehouse products are on deal at any time, so retailers can choose to pass the deals on to customers or keep the discount money. "e store has the ability to keep half of it, or all of it. e owner can keep any of it in 10 percent increments," McCann says. e warehouse also offers a competitive price check, and then will custom-build a price structure for each location. In addition, PWADC will conduct a mini survey to let retailers know what the volume should be in a location. "We're in the 90 percent range of hitting that goal or telling them pretty close, within 10 percent, of what they're going to do," says McCann. "We will custom-build a price structure for that location. We do not take a generic price structure at all. at's been one of our biggest strengths that's really helped our stores." About 70 percent of the owners also use PWADC's PWADC'S REACH Jerry McCann shows the spread of the 275 stores that PWADC serves across seven states in the southeastern United States. RELIABLE FOOD PROCESSING EQUIPMENT BIRO Manufacturing Company Marblehead, OH 43440-2099 USA 419-798-4451 Fax 419-798-9106 249RB-11-14 Md. B300M 12" Manual Feed Slicer Md. B350Comfort 13 3/4" Semi-Automatic Single-Speed Slicer Md. B350A 13 3/4" Semi-Automatic Multi-Speed Slicer Md. B350M 13 3/4" Manual Feed Slicer

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