Holiday 2012 Stop & Shop NE Merchandising Plan

Seasonal Sell Thru presents great opportunity at SSNE, leverage Hershey’s holiday shopper insights, promotions & direct retail elements Ahold 90.6%82.9%83.5%83.6%85.15% Giant Carlisle 93.8%88.2%88.3%88.8%89.77% SSNY 90.4%84.1%85.1%82.9%85.62% Giant Landover 91.8%78.3%86.2%80.1%84.1% SSNE 87.6%79.8%76.1%81.6%81.27% DivisionHWNHLDYVALESTRAVG

Holiday Candy % of Converted Shoppers Nielsen HH Panel: 2010 vs Giant MD drove total Ahold conversion increase while SS and Giant PA saw declines. SSNE had direct loss to CVS Source: Nielsen HH Panel

2012 SSNE Holiday Growth Strategies 1.Meet the Demands of the Holiday Shopper at SSNE 2.Upgrade quality of merch based on Ahold shopper research -Set the Holiday Mood in store through core display solutions -Simplify the layout of the Seasonal Aisle -Place all seasonal instant consumables at front ends 3. Increase shopper participation with promotions/recipes that incent basket building

Shoppers tend to rate retailer satisfaction higher during seasons, but Ahold recorded less satisfaction among Holiday shoppers Retailer Satisfaction Somewhat or Highly satisfied +2% +1%+4%+1%+0%-7% Source: 2011 Hershey Seasons Tracking Study for Holiday '11 5

Action #1 - The opportunity is in “smoothing” the experience across the SSNE store to immerse the customer in a festive atmosphere Mass LobbyWeak Side Lobby No Seasonal Thematic uniformity during 2011 in order to set seasonal mood to shoppers

Packaged Candy lobby anchor displays drive sales and share Source: Nielsen Competitor Retailer A +9% Retail CPC sales +3.4pts Mkt Share Competitor Retailer B +32% Retail CPC sales +5.3pts Mkt Share Lobby leading CPC Classic Bag Displays

Majority of SSNE Choc Pkg displays were inside the Seasonal Aisle; should be in lobby and leading aisle throughout season Front Runway11.0%23.0% Rear Runway5.6%11.8% Lobby3.8%7.5% Lft/Rt Runway0.6%1.5% In Aisle14.9%19.7% Seasonal Aisle 79.0%86.1% Checkout1.7%1.5% Source: Nielsen Sales Rates SSNE % Market Display Location 12/3/11 12/31/11 7 Holiday Choc Pkg Holiday Source: Nielsen

Starting 11/1 signal to shoppers that the season has arrived by creating seasonal solution centers lead by Holiday Candy Dish in both lobbies (Hershey Holiday Kisses) Ahold Basket Analyzer – Herhsey Holiday Kisses Holiday Kisses have high correlation in basket to these items that should be built as a total Holiday solution within both lobbies: -GM Holiday table accent items -GM bows and gift-wrap -Baking ingredients -Floral (poinsettia's) -Seasonal produce

10 1.Set the Holiday Mood in total store on 11/1 – Smooth front of store (lobby) themes by encompassing Candy Dish displays (Kisses) with GM, Floral & Produce 2.Leverage all thematic POS & directional aids/signage on lobby displays educating shoppers the location of seasonal aisle 3.Cross Merchandise seasonal confections in other areas of store with Snacks (DSD), Bargain Aisle, & bakery through use of corrugated displays Ask your Hershey Rep Action #1 Recap of Actions:

Seasonal Aisle Channel Strips Actions: Stores to receive Channel Strip POS to the attention of store manager by10/30/12. POS Kit to include: Candy Dish – 21 strips (4ft in length) Baking/Crafts - 7 strips (4ft in length) Novelty/Stocking Stuffers – 6 strips (4ft in length) Gifting - 14 strips (4ft in length) Instructional Guide First place channel strips in aisle prior to merchandising product on shelf Use Bib Tags for all items on shelf to communicate pricing to shoppers Your Hershey representative will have additional channel strips as needed through Holiday

24ft Seasonal Aisle Channel Strip Layout (by footage) Novelty/ Stocking Stuffer space 24ft across top shelf Candy Dish space 12ft Baking/Crafts space 4ft Gifting space 8ft Seasonal Aisle Channel Strips to support POG Layout: Seasonal Aisle Entrance First section Most internal section

Also setting seasonal aisle end caps based upon buying patterns, plus leading the aisle with Hershey Holiday Kisses will drive traffic down the aisle leading to greater conversion Early Season 11/1 – 11/18/12 Mid Season 11/19 – 12/10/12 Late Season 12/11 – 12/25/12 Primary GM/Grocery End Cap #1 Sharing at Home Candy Dish - Classic Bags Sharing at Home Candy Dish - Classic Bags Sharing at Home Candy Dish - Classic Bags Secondary GM/Grocery End Cap #2 Showing Appreciation Gifting - Presentation Box Showing Appreciation Gifting - Presentation Box Showing Affection Novelty & Canes Note: For those larger stores that will place Candy Dish (example Kisses) as lead to both strong & weak sides lobbies you should instead place other candy dish brands on primary GM/Grocery End Cap. Plus us General Merchandise as lead to seasonal aisle The Core Hershey Display that should lead seasonal aisle

14 Action #2 Recap of Actions: 1.Keep seasonal aisle visible from front entrance, directional signage needed 2.Set seasonal aisle by trip missions/usage occasions -Place “custom channel strips” to outline the usage occasion to make it simple for shoppers -Ensure all items have Bib Tags to reflect Real Deal pricing -Do our best to maintain all case displays (avoid hand stocking) 3.Main seasonal aisle should be well marked with strong brands leading the aisle & on GM/Grocery end caps 4.Set the tone with decorations that align to 360 degree communication theme (leverage in store & manufacturer POS)

On display 11/1/12 and running through 12/25/12 Front end/checkouts/U-scan, perimeter/high-traffic areas Action #3 – Capture impulse high margin sales by placing all seasonal count good shippers in front ends

Action #4 – Create Shopper Recipe Solutions that will increase convenience and baskets and promotes total store Holiday feel RankUPC Description Product Group Penetration Skew Score (Lift) Composite Score 1 SNYDR PRTZL SNAPS 10 OZ6.10% SNYD 16Z SNAPS PP6.30% DMND PECAN SHL 6Z3.44% RankUPC Description Product Group Penetration Skew Score (Lift) Composite Score (Correlation) 10BC CK PCH PNT BTR 17.5Z4.29% PILLSBRY PNUT BTTR CK301.11% Source: EYC/CCR, *Holiday Purchase Exploratory Holiday 2011 Ahold Shopper Insight: Pretzels and pecans are 5X more likely to be in an Ahold shopper’s basket with Rolo than the average Holiday basket Program Details: -Program beings 10/5-12/25 in store -HSY retail teams will set up program initially in stores -Place near baking barge to maximize impact Rolo Pretzel Pecan DelightsHershey Kisses Peanut Butter Blossom Cookies Program Details: -Program beings 11/1-12/25 in store -HSY retail teams will set up program in addition to Rolo Pretzel Program –Place corrugated displays back to back near baking barge to maximize impact Ahold Shopper Insight: HERSHEY’S KISSES Peanut Blossoms rank as the #2 favorite holiday cookies to eat

17 11/1-11/16 – Timeline & Priorities of Hershey’s Holiday Store Support 10/26 – SSNE division informed of Holiday Merch Plan Expectations. Letter to follow 10/29-10/30 - Stores to receive Seasonal Aisle Channel Strips to attention of St Mgr (Hershey will get back up strips by11/5) 10/30 – Stores to receive 1 additional baking hutch to support Kiss Blossom Cookies (ordered to stores already) 11/1- Store set up Holiday Merch Plan 11/1-11/6 – Hershey routes accordingly to call upon 100% of SSNE Stores to support Merch Plan (as needed) Key Merchandising Objectives (ranked in order): 1.)Smooth front of store (both lobbies) themes by encompassing Candy Dish displays with GM, Floral & Produce.. SETTING THE HOLIDAY MOOD FOR SHOPPERS 2.)GM/Groc End Caps leading the aisle should be Confection/GM Holiday solution 3.) Seasonal Aisle leads with Candy Dish Confections (Kisses Brand) NOT novelty 4.)Ensure stores have received appropriate number of channel strips for seasonal aisle POG compliance (audit, assist as needed) 5.)Placement of our Seasonal Count Good Shippers at Front End Registers or near U-scans to drive sell through & profits through impulse purchases 6.)Cross Merchandise seasonal confections in store with Snacks (DSD), Bargain Aisle, & bakery 7.)Placement of our Hershey corrugated displays on 2 featured baking recipes (Rolo Pretzel Delight & Kisses Peanut Butter Blossom Cookies) within baking barge 8.)tems & displays have proper sales signage 9.)Leverage all thematic POS & Seasonal Aisle directional aids PLEASE TAKE PICTURES BY STORE AS WE ACCOMPLISH EACH OBJECTIVE AND SEND TO MIKE SCULLIN…Send ALL