Exhibit 99.6
October 3, 2007 Brand Leverage through Retail Terry Maxwell SVP, Retail |
Talking Points How Retail Leverages the Brand Retail Business Objectives Key Strategies: Product, Pricing, Presentation, Packaging Key Tactics: Conversion, AUR, UPTs, |
Shared Themes at the Table and in the Store Recap Execute Concept Plan Marketing Retail Restaurant BRAND PROMISE "Cracker Barrel provides a friendly home-away-from-home in our old country store and restaurant. Our guests are cared for like family while relaxing and enjoying real home-style food and shopping that's surprisingly unique, genuinely fun and reminiscent of America's country heritage... all at a fair price." |
A Very Strong Brand The Brand Purpose of Retail A Unique Restaurant Brand in Consumers' Minds "Half Restaurant. Half Store. All Country(r)" Not a Major Destination in Itself The Image of Retail An American Old Country Store Feeling of Authenticity, Country, Nostalgia, Family A Seasonal Fun Atmosphere that Flows into the Restaurant Menu MUST Support the Brand Name and Unique Selling Proposition |
Why Do People Buy? Impulse No Plan to Purchase but Saw Something They Wanted One-Stop Shopping Plan to Eat and also Purchase Retail Gift and/or Card |
Retail at Cracker Barrel Total Retail Sales FY 07 $507 Million Average Store Volume $917,000 Sales Per Square Foot $429 Margin Improvements 250 Basis Pts Since FY 04 Percent To Total FY 07 21.6% Percent To Total FY 04 23.6% |
Retail Business Model Financial Objectives Grow Retail Sales Improve Profitability Grow Retail Percent-to-Total Strategies Product Pricing Presentation Packaging |
Product Strategy Develop programs and items that are surprisingly unique, genuinely fun and reminiscent of America's country heritage ...all at a fair price. |
Product Strategy Holiday Seasonal Everyday/Basics 4th Qtr East 55 25 20 20.4 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 Holiday (Christmas, Halloween) Seasonal (Garden, Harvest) Everyday "Basics" (Replenishable) |
Pricing Strategy "We are fair, genuine, real folks who believe in giving honest value for money." Comprehensive Item Price Review Assortment Mix Changes Right Sizing Buys |
Pricing Strategy We will put primary focus on utilizing an "offensive" pricing strategy to drive multiple unit sales and improve primary metrics in our business model: UPT, Conversion, GM Dollars and improve primary metrics in our business model: UPT, Conversion, GM Dollars and improve primary metrics in our business model: UPT, Conversion, GM Dollars Clearance Multiple Unit Sales Full Price Lower MARGIN Higher |
Presentation Strategy "Thrill of the Hunt" Visual Merchandising Explore Discover Connect Purchase |
Packaging Strategy Develop Packaging that..... Supports and Leverages the Personality of the Brand Adds Value to the Product and Shopping Experience |
Retail Business Model Financial Objectives Grow Retail Sales Improve Profitability Grow Retail Percent-to-Total Tactics Increase Number of People Who Buy (Conversion) Improve Price Points (Avg. Unit Retail) Grow Number of Units Each Customer Buys (UPTs) |
Guest Conversion Guest Conversion Will Contribute to Same Store Sales Increase In 2008 Target Programs In-Stock Positions Service Sells Presentation Strategies |
Average Unit Retail (AUR) Average Unit Retails Will Support Retail Sales Growth Initiatives In 2008 Everyday Basics Comprehensive Item Price Review Assortment Mix Seasonal & Holiday Continued Focus on Right Sizing Buys to Increase Pre-clearance Sell-through % with Improved Margin Utilize the Clearance Corner for Fall FY08 to Facilitate In-season Clearance and Reduce Clearance Signage in Prime Floor Space Locations |
Units Per Transaction (UPTs) Units Per Transaction will grow to support same store sales increase for 2008 Point-of-sale Improved BOGO Capabilities Added Functionality to Encourage Multiple Unit Sales Bundled Purchases Reduced Markdowns In-stock Positions Replenishment Systems Enhancements Integrated "Exception Management" Capability |
Summary How Retail Leverages the Brand Retail Business Objectives Key Strategies: Product, Pricing, Presentation, Packaging Key Tactics: Conversion, AUR, UPTs, |