1. DeCA East Mr. Randy Chandler Director, Sales Mr. Randy Chandler Director, Sales Sales Update

2. TOTAL SALES ALL 11 ZONES UP GROCERY SALES ALL 11 ZONES UP PRODUCE SALES ALL 11 ZONES UP MEAT SALES 6 OF 11 ZONES UP TRANSACTIONS 9 OF 11 ZONES UP TOTAL SALES ALL 11 ZONES UP GROCERY SALES ALL 11 ZONES UP PRODUCE SALES ALL 11 ZONES UP MEAT SALES 6 OF 11 ZONES UP TRANSACTIONS 9 OF 11 ZONES UP YTD East Zone Sales Thru April 2008

3. * Indexed to Region Average DepartmentZone Percent Change Index* Total Sales 26+5.9%145 Grocery Sales 29+5.9%144 Produce Sales 26+11.6%183 Meat Sales 29+4.9%397 Transactions21+3.4%237 East Zone Leaders - Sales Thru April 2008

4. Zone Dollar Increase Percent 21$98,069.2670% 23$91,399.5073% 25$80,042.3814% 26$114,570.5921% May Case Lot Sale

5. StoreDollar IncreasePercent Hanscom$28,206.83110% McGuire$55,928.29111% Fort Buchanan$31,141.86100% Carlisle Barracks$19,653.94198% Fort Meade$89,462.7066% Fort McCoy$26,659.13162% Ft. Ben Harrison$20,187.29150% May Case Lot Sale

9. End of Cheap Food?  Healthcare costs  Oil price surge  Weak dollar  Weather Drought in Australia Flooding in Argentina  Demand China beef consumption has doubled  Impact of ethanol  Healthcare costs  Oil price surge  Weak dollar  Weather Drought in Australia Flooding in Argentina  Demand China beef consumption has doubled  Impact of ethanol

10. Water It takes 450 lbs of corn to produce enough ethanol to fill an SUV gas tank It takes 800 gallons of water per person per day to produce daily food intake Corn 1,500 gls water = 1lb beef 7 lbs corn = 1lb beef 2.5 lbs corn = 1lb poultry Sustainability?

11. Consumer Impact  FMI Trend Reports 71% increase in home cooking frequency 67% buying fewer luxury items 60% buying more store brands  Value will be focus  Fewer trips to secondary stores  Fewer trips = STOCK UP  FMI Trend Reports 71% increase in home cooking frequency 67% buying fewer luxury items 60% buying more store brands  Value will be focus  Fewer trips to secondary stores  Fewer trips = STOCK UP

12. Retail Shift  New outlets Supercenters, 70% Dollar stores, 64%  Losing ground Drug channel, -3% Grocery, -6%.  Same store dollar sales declined as well  New outlets Supercenters, 70% Dollar stores, 64%  Losing ground Drug channel, -3% Grocery, -6%.  Same store dollar sales declined as well

13. Defining Trends  Four trends will shape the retail operating environment the remainder of this decade:  Aging population  Increasing ethnic diversity  Need for speed  Health & wellness concerns  Opportunities products, alterations to the store (lighting, store set) accommodate older shoppers’ limitations  Four trends will shape the retail operating environment the remainder of this decade:  Aging population  Increasing ethnic diversity  Need for speed  Health & wellness concerns  Opportunities products, alterations to the store (lighting, store set) accommodate older shoppers’ limitations

14. The Three Ps  Manufacturers trying to keep pace with new items Portability Preparation simplicity Preparation time  New product concepts must respond to speed- of-life issues without sacrificing flavor  Manufacturers trying to keep pace with new items Portability Preparation simplicity Preparation time  New product concepts must respond to speed- of-life issues without sacrificing flavor

15. Fastest-Growing Categories 1.Drinkable yogurt 2.Fresh fish/shellfish & seafood 3.Alcoholic cider 4.Ready-to-eat salads 5.Baby formula 6.Dairy-based drinks  Source: executive news report from nielsen global services, december 2006 1.Drinkable yogurt 2.Fresh fish/shellfish & seafood 3.Alcoholic cider 4.Ready-to-eat salads 5.Baby formula 6.Dairy-based drinks  Source: executive news report from nielsen global services, december 2006 >$1 Billion

16. New Team Members  Michelle Frost – Chief, Semi-Perishable Division  Brad McMinn – Chief, Perishable  Barbara Merriweather – Category Manager, Local/DSD  Michelle Frost – Chief, Semi-Perishable Division  Brad McMinn – Chief, Perishable  Barbara Merriweather – Category Manager, Local/DSD

17. Promotions  Total items published reduced 21% Dollar Sales Per SKU + 5% Units Per SKU + 7%  Increase Pallets/Shippers  Incorporate Club Packs Averaging $6.8 million per month $2 million per month increase  Seasonal Programs + $9 million  Total items published reduced 21% Dollar Sales Per SKU + 5% Units Per SKU + 7%  Increase Pallets/Shippers  Incorporate Club Packs Averaging $6.8 million per month $2 million per month increase  Seasonal Programs + $9 million

18. Front End Racks  Fixtures have been selected  Currently Developing stock assortment Surveying stores select type of fixtures  60 days to manufacture equipment  Phased implementation - September  Fixtures have been selected  Currently Developing stock assortment Surveying stores select type of fixtures  60 days to manufacture equipment  Phased implementation - September

22. Check It Out  Shoppers choosing self-checkout: Wal-Mart (45%) Kroger (43%) Target (40%) Publix (28%) Costco (26%) Whole Foods (14%) Safeway (13%) Meijer (11%) Albertson’s (11%).  Shoppers choosing self-checkout: Wal-Mart (45%) Kroger (43%) Target (40%) Publix (28%) Costco (26%) Whole Foods (14%) Safeway (13%) Meijer (11%) Albertson’s (11%).

23. Space Allocation – Bragg North  Today little variance in plan-o-grams Based on historic sales data Sets based on class of store No factor for lost sales or promoted volume  Reduce space in declining categories Fewer items = IN STOCK  Reconfigure flow to maximize allocation efficiencies  Today little variance in plan-o-grams Based on historic sales data Sets based on class of store No factor for lost sales or promoted volume  Reduce space in declining categories Fewer items = IN STOCK  Reconfigure flow to maximize allocation efficiencies

24. Organic Options  Organic food sales represent just 2.5%  Organics grew 30% in 2007  Grown roughly 20% per year for past five years  Grocery annual sales grew 3–5% overall  Organic food sales predicted to double as early as 2009  Organic offerings in personal care, nutritional supplements, household cleaners, and pet food  Organic food sales represent just 2.5%  Organics grew 30% in 2007  Grown roughly 20% per year for past five years  Grocery annual sales grew 3–5% overall  Organic food sales predicted to double as early as 2009  Organic offerings in personal care, nutritional supplements, household cleaners, and pet food

25.  Organic Products Items up 39% in last 12 month – from 460 to 641 Sales up 40% (Apr–Mar over prior year) to 33.5m  Environmental Initiatives Reusable grocery bags sold starting 10/30/2007 Over 1,007,000 sold thru 05/14/2008  Compact fluorescent light (CFL) bulbs, FY 08 Goal: 1 Million Over 733,000 sold FYTD – thru 05/14/2008  Organic Products Items up 39% in last 12 month – from 460 to 641 Sales up 40% (Apr–Mar over prior year) to 33.5m  Environmental Initiatives Reusable grocery bags sold starting 10/30/2007 Over 1,007,000 sold thru 05/14/2008  Compact fluorescent light (CFL) bulbs, FY 08 Goal: 1 Million Over 733,000 sold FYTD – thru 05/14/2008 Focused on “Green” Efforts

26. Expand Benefit - Access G/R  Developing staff office for support  Serve as single POC for store support Logistics Communication Transportation Equipment  Develop “Virtual Solution” Internet ordering – on site payment Develop total solution to include payment Expand – self fulfillment  Developing staff office for support  Serve as single POC for store support Logistics Communication Transportation Equipment  Develop “Virtual Solution” Internet ordering – on site payment Develop total solution to include payment Expand – self fulfillment

27. Retail Perspective  Consumers are plugged into technology  Logging on to plan trips search for restaurants and socialize  Top 15 web domains eBay.com, 1st Amazon.com, 5th Target.com, 12th Wal-Mart.com, 15th  Consumers are plugged into technology  Logging on to plan trips search for restaurants and socialize  Top 15 web domains eBay.com, 1st Amazon.com, 5th Target.com, 12th Wal-Mart.com, 15th

28. Mr. Randy Chandler Director, Sales Mr. Randy Chandler Director, Sales Thank You!