PROJECTED S4OC 2023
S4OC projections based on key assumptions, predictive inflation assumptions, and ability to capture savings
Saving for the connected customer
2023 Identified Projected Savings
2023 Unidentified Projected Savings
2023 Projected Savings
A Brands number does not reflect any additional activities that could come from Commercial Evolution over and above currently known
1
Private Brands projection reflects the economist forecast for 2023 of stabilization (no significant deflation)
2
National Brands Private Brands*
$95M $73.5M ($21.5M)
Similarly, Fresh was submitted to Finance as $0 Cash Savings
3
$13M $13M $0M
Sustainability costs are not a straight deduction in S4OC for PB or Fresh but do impact the total scope of where sourcing and merchandising will negotiate savings (meaning less opportunity may exist to secure lower COGS). They also impact the total department cost basis in the P&L, meaning COGS would likely increase in totality.
$60M $22M ($38M)
Fresh*
4
Total Sourcing
$168M $108.5M ($59.5M)
*Sustainability (RRC/PCR) cost impact is not reflected in any S4OC projections. Estimated costs to meet GSO goals range from $130M to $180M based on current initiatives & recent inflationary cost pressures.
This does not include regulatory compliance for MA Q3 (gestation crate-free pork) estimated at $5-$7M for MA stores only and $150M-$250M for ADUSA (2025 commitment).
10
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