1. KS - The Value of EDLP to Industry Weekly Carton Volume

2. Methodology
Provides an overview of the Convenience Sector by RJRT Contract condition
Reviews average weekly Industry carton volume reported by MSA STR
4Q12 vs. 4Q11
Same Stores
Results are provided for RJRT EDLP and Base Contract Conditions
Convenience Retailers that maintained RJRT EDLP / Base Contracts Oct 11 – Dec 12
Retailers that switched to/from EDLP Contracts during 2012
Convenience stores without an RJRT Contract during Oct 11 – Dec 12

3. Industry Carton Weekly Volume - KS
Store Count:
590
211
182
1,131

4. EDLP Impact on % Volume Change - KS
EDLP outperformed the Total Convenience Sector in Volume and % Change
The Industry Volume of Retailers that left the EDLP Contract during 2012 declined nearly 37%
Retailers that switched to EDLP during 2012 gained nearly 25%
Store Count:
590 40 89
1,131

5. Industry Volume of Retailers Leaving Contract - KS
Convenience Retailers that left Contract during 2012 experienced large volume decline
Store Count: 5 35