NEWS and VIEWS Winter 2007 - Piggly WigglyNEWS and VIEWS Winter 2007 2007 Officers Gene Wade President Jimmy Welborn Vice President Jerry Mountin Secretary/Treasurer ... interview

NEWS and VIEWS Winter 20072007 Officers

Gene WadePresident

Jimmy WelbornVice President

Jerry MountinSecretary/Treasurer

David Drose Chaplain

Greg AdamsImmediate Past President

FROM THE DESK OF GENE WADEPIGGLY WIGGLY and the National Grocers Association (N.G.A.) enjoy a special relationship. We both are committed to and support the continued growth and suc-cess of the independent community-focused retailer. In February, N.G.A. will host the 2008 N.G.A. Annual Convention and Supermarket Synergy Showcase (S3) which focuses exclusively on topics affecting our nation and world, as well as the timeliest issues and trends affecting community-focused retailers in a professional, interactive atmosphere.

The annual Piggly Wiggly Operators Association meeting will take place Thursday, February 7, at 3:00 p.m. After the meeting, there will a special reception for Piggly Wiggly operators. Please make every effort to attend this meeting.

We believe that the N.G.A. convention represents an excellent learning experience and PIGGLY WIGGLY plans to have a major presence at the meeting. To that end, I want to take this opportunity to personally extend an invitation to you, and your manage-ment team to participate in the N.G.A. 2008 Annual Convention and Supermarket Synergy Showcase (S3) at the Paris Las Vegas Hotel, February 5-8, 2008.

For over 25 years, N.G.A. has earned the reputation of delivering programs of the highest caliber. The convention will include daily general sessions, four super-breakfast sessions, over 35 educational workshops and the always popular N.G.A. Chairman’s Dinner and Gala. The S3 Concept Show is an innovative alternative to the traditional trade show and will feature seven distinct concept pavilions as well as the Industry Resource Center which showcases a number of leading Universities and Trade Pub-lications from around the country. Back again will be N.G.A.’s live television show “N.G.A. TV - Independently Speaking.” The show will take place daily, during which time Phil Lempert, food editor and correspondent for NBC’s TODAY Show, will can-vass the concept show and uncover the latest new products, interview attendees, and discuss food safety issues and the latest trends in merchandising. You can view scenes from last year’s N.G.A. TV by going to our website www.nationalgrocers.org and click-ing on the convention tab.

Continued on Page 2

Inside this issue:

2 - Life after Walmart

2 - Wade’s Piggly Wiggly Golf Classic

3 - Mayville Celebrates Audubon Days

3 - Big Pig Around Town

4 - 2007 PW New Locations

The N.G.A. Annual Convention offers a business learning experience that will allow you and your staff to focus on how industry and marketplace trends and issues will translate into greater success and growth for your company. From competing with the supercenters to taking advantage of the latest technology, the convention program is strategically designed to provide the right balance of education and networking.

Register yourself and your associates and plan to come to the convention as a team. N.G.A. is ready to accommodate you and answer any questions. As an incentive, for every four full registrants, the fifth is complimentary. For every four spouse registrants, the fifth is complimentary. Begin making plans today to join your industry peers in Las Vegas. For more information or to register, visit N.G.A. online at www.national-grocers.org or call Karen Voorhies 703-516-8812.

Sincerely,

Gene WadePresident, National Piggly Wiggly Operators Association

Wal-Mart opened another one of their Super Centers, this one in Sanford, NC. They had a very busy Grand Opening and impacted everyone’s business, including ours. They have been open now for about 2 months and we are running the same as last year’s sales. Food Lion has two stores in town that were impacted in a very big way: one store was impacted by about 40% and the other about 20%. The rumor on the street is that they will close one of these stores. Another major competitor, Lowe’s, lost about 20% of their business.

Why were we the least impacted? The reason is that we have a good operation. We did not change anything we do. We continued to give excellent customer service and pro-mote our perishables. We have a very strong meat image, so we continued our focus on this department. We buy and sell a lot of local produce and this also has enhanced our image in the community.

So when Wal-Mart announces that they are coming to your town, remember that you can compete.

Greg AdamsPiggly Wiggly, Sanford, North Carolina

In memory of Norman & LaNelle Wade the 2nd annual Golf Classic was held Sep-tember 12, 2007 at Lakehaven Golf and Country Club in Decatur, Tennessee. Thank you to everyone for making the tournament a great success. Seventy-nine golfers com-peted this year and more than $10,400 was raised for the fund. The net proceeds go to the TGEF Norman and LaNelle Wade Memorial scholarship program. Each year a $1000.00 scholarship is presented to a High School Senior employed by our stores.

Tiffany Wade, Wade’s Piggly Wiggly’s

FROM THE DESK OF GENE WADE CONTINUED

LIFE AFTER WAL-MART

WADE’S PIGGLY WIGGLY’S – N& L MEMORIAL GOLF CLASSIC

Audubon Days is Mayville’s largest annual festival, held the first weekend in Octo-ber. Mayville’s proximity to the Horicon Marsh is a great place for this fall family festival. Mountin’s Piggly Wiggly of Mayville helps kick off the festival by spon-soring an annual beer tasting event. The beer tasting is located at the city’s park which borders the Rock River and is graced by hundreds of trees at the peak of fall color.

As sponsors, Mountin’s Piggly Wiggly takes pride in coordinating this event. From organizing beer samples and snacks, to promotions, decorating, food concessions, live music and more. Polka music by The Don Peachey Band, Polka Hall of Fame members, really worked well with the Octoberfest atmosphere of this tasting. Over 20 varieties of beer were sampled, along with many gourmet sodas. Door prizes were awarded throughout the evening. Special guests that evening included Dick Leinenkugel, of the Chippewa Falls Leinenkugel Brewery and Mr. Pig.

The attendance reached over 300 people this year and the age of attendees ranged from 21 to 91. Mountin’s is always pleased to coordinate this community based fundraising event. Profits from the Audubon Festival are used to promote and im-prove the city of Mayville. Old and young enjoyed an evening of good beer, good music and good fun!

Happy Holidays,Terri JohnsMountin’s Piggly Wiggly, Mayville, WI

Tarboro, NC - Mr. Pig can be found at any number of events in tarboro, from the anaual christmas parade down main street to the easter baseball tournament. Kenny and brenda honeycutt are very envolved in thier community and often mr. Pig can be found close by. Everyone loves mr. Pig and no other grocery store has anything to compare with this famous character who has seen it all. Just the name piggly wiggly attracts people to our stores, proving once again the power of name recognition. Just before thanksgiving this year a retired doctor here was showing relatives from califor-nia around our beautiful little town when they rode past the piggly wiggly on main street...The californians had to visit and bought souviners (t-shirts, cups, hats and mr. Pig dolls) to take home after thier visit. “Every operator should do all they can to maximize the power of the brand.”

Kenny Honeycutt

MAYVILLE, WISCONSIN CELEBRATES AUDUBON DAYS

BIG PIG AROUND TOWN

Every operator should do all they can to maximize the power of the brand.

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Piggly Wiggly LLC looks back on 2007 with many positive results. When the year end-ed we recorded 47 new store openings covering 11 states. In the areas of store upgrades through remodels, replacements, and relocations 55 stores underwent this process. Both of these results continued to enhance the overall Piggly Wiggly image and gain addi-tional market share in their various communities.

Breaking out growth by distribution center Piggly Wiggly Alabama Distributing Com-pany located in Bessemer, Al led the way for the 15th straight year as they added twenty locations in five states. This year nine new owners serviced by Bessemer were also added to the system with several looking at future growth as well. The stores in Richland, Ga and Bristol, Fl were also ground up facilities with respective owners Barry Buchholz and Chad &Rebecca Ramsey overseeing these projects. This division is also in the process of opening an additional four locations in the first Quarter of 2008

C&S Company owned stores also made strides in 2007 by converting seventeen of their Southern Family Market locations serviced by their Birmingham Distribution Center. These stores were located in Alabama, Georgia, and Tennessee. They now presently oper-ate 27 Piggly Wiggly stores and will convert three more locations in January of 2008.

Affiliated Little Rock showed strong growth in our Southwestern US areas as six loca-tions were opened in Arkansas, Louisianna, and Oklahoma. This group includes three new owners to the system. Paul Durnin is also in the process of opening a new ground up location in Hammond, La in early 2008.

Piggly Wiggly Carolina Company added one new location and spent millions in up-grading many of their corporate store locations in South Carolina and Georgia.

Associated Wholesale Grocers in Nashville, Fresh Brands in Wisconsin and Nash Finch in Lumberton, North Carolina opened one location each. The Food Farm Piggly Wig-gly Retail group based in Kinston, NC also did major remodels on 10 of their 69 loca-tions.

We had an overall net gain of 34 locations for the year. This also was a year when not one single store made a banner change, and we were able to keep nine Piggly Wiggly locations in operation through ownership transfers from within our system of operators. The momentum for 2008 is already in motion as we look forward to similar positive results based on the initial activities already in place.

In summary the 2003 simplified license agreement with lower fees has played a major part in attracting 165 additional stores to the system during the past 4 years.This also represents a net store gain of 75 during this same period. In 2007 we have experienced a 65% reduction in store closings due to competitive situations versus a typical year( 10vs 30).This is further proof of our aggressive PW owners doing what it takes to compete everyday. We appreciate your willingness to reinvest and expand your businesses, which ultimately enhances the value of marketing under the Piggly Wiggly banner.

John Matlock, VP Sales/DevelopmentPiggly Wiggly LLC

2007 PIGGLY WIGGLY NEW LOCATIONS AND NET STORE GROWTH HITS 15 YEAR HIGH

Happy Holidays!!