Foodstuffs South Island Lim ited Annual Report 2011 Sum m ARy ...

10
Chairman’s Review (continued)
share dividend, imputation credits
totalling $5.8m will be issued.
Rebates and Dividends
In summary, this year’s total rebates
and dividends to Members are;
Bulk and repack rebate $126.9m
Supplier rebates $18.8m
Monthly cash rebates
2011 Retained Patronage
$145.7m
shares issued
2010 Retained Patronage dividend
$30.4m
– capitalised $2.6m
– cash $5.9m
Total RPS and dividend $38.9m
Produce rebate $0.5m
IT leasing rebate $0.6m
Trading deposit rebate $19.0m
Dividends on RPS shares $5.0m
Total dividends and rebates $209.7m
Imputation credits
Total value of distributions
$5.8m
to Members $215.5m
Information technology –
Project Valentine / SAP
It is pleasing to report that SAP
has become business as usual for
Foodstuffs South Island and we are
currently realising the multitude of
benefits it holds for the Co-operative
as well as our Members. Currently
our main focus is on the deployment
of SAP to our Members, and even
with the adverse events we faced
recently, we can report that the
retail rollout has progressed well.
The implementation has gained
momentum as the rollout team
acquired experience and confidence
over the last year. By the end of the
financial year we had 13 stores fully
on SAP and 33 stores in various
phases of implementation. SAP is
a fundamental change in the way
Members manage their businesses.
Stores using SAP have the benefit
of increased visibility and timeliness
of data, more robust processes,
penetration of eCommerce, better
margin management, inventory
management, purchasing
opportunities and operational
efficiencies through the wireless
handheld terminals.
Over the next year, the retail rollout
programme will continue in the
PAK’nSAVE and New World stores
whilst a rollout strategy is being
devised for the Henry’s Beer Wine
& Spirits and Four Square banner
groups.
Christmas Club
2010 was the first year of operation
for the Dunedin based Christmas
Club call centre. The new electronic
Christmas Club scheme has been very
successful; not only has this scheme
reduced administration overheads but
it has resulted in a dramatic increase
in funds flowing through the Christmas
Club card scheme.
Retail Development
Last financial year, Foodstuffs (South
Island) Properties Ltd undertook
the expansion and refurbishment of
several of our retail properties and
provided assistance to Co-operative
Members undertaking refurbishment
in leased properties.
The refurbishment of New World
Rangiora was completed by the
end of the financial year and it
now boasts a new interactive
bakery display, where products
are baked in front of the customer
for instant selection. New World
Oamaru underwent a complete retail
refurbishment which was completed
early in 2011. The store now has
new style flooring and ceilings and
a modern wine display which allows
the customers a better opportunity
to peruse the expanded selection.
Henry’s Beer Wine and Spirit stores
continue to expand and our 18th
Henry’s opened in Greymouth
in October 2010. We have seen