New Store Manager Advisory Council Created Gemco Lends a Helping Hand

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FOR EMPLOYEES OF THE GEMCO DIVISION OF LUCKY STORES, INC. OCTOBER 1986

NEW STORE MANAGER ADVISORY COUNCIL CREATED

ugust 14 marked the first official meet- pate in special developmental projects, and generated by the council fresh and new, and ing of GEMCO's new Store Manager serve as a two-way communications link be- so that participation on the council doesn't Advisory Council. The council, formed by tween the stores and upper management. become overly burdensome to the energies Dave Bolen and Grant Cottingham, vice Council members, who were chosen for of its members. presidents, operations, south and north, their strong performance and leadership Scheduled to meet monthly, the council's respectively, is made up of one store manager abilities, include: Mike Borger, Dick DeKalb, first agenda items include making recommen- from each district. Its purpose is to serve as Jack Dyer, Woody Gray, Dave Locko, Will dations on Christmas store hours, restructur- a sounding board to Grant and Dave about Mathwig, Bob Moore, Craig Stevenson, Doc ing the base crew schedule, and the new the advisability and implementation of new Wright and Terry Wuertz. Members will be internal management training program. orograms, policies and procedures, partici- rotated on a regular basis to keep the ideas

GEMCO LENDS A HELPING HAND by James J. Barnett tion in each GEMCO area, the board allowed receives about 500-600 charity requests each for the development of regional chapters year from our chapters. Each request must herever there's a GEMCO store, the Here again, local public-spirited people who be screened for IRS acceptance and ca- GEMCO Charitable and Scholarship were knowledgeable of the charitable needs tegory approval. Checks are then processed Foundation is at work, lending a helping hand, of the area gladly offered their services. Today and sent to the applying chapter's chair- aiding local civic endeavors, supplying need- there are 31 chapters, about 190 people, person for signature and presentation. ed funds to local charities and helping deserv- covering the 80 GEMCO stores throughout CONT'o. ON PG. 2 ing students with college scholarship grants. California, Arizona and Nevada. This is GEMCO's commitment to the commu- The Foundation's nities it serves. most publicized en- With the opening of the first GEMCO in deavor is the scholar- Anaheim, the GEMCO Foundation in 1959 was ship program. Each chartered as a California corporation. The year every school in Foundation was, and is today, governed by the vicinity of a a board Of prominent civic leaders who serve GEMCO store is invited without compensation. Mr. A.E. ("Pat") to enter a student in Arnold, president emeritus, presided from the the GEMCO scholarship inception of the Foundation until his retirement competition. College in 1983. grants of $500 to The Foundation was the medium through $1500 are awarded to ,hich GEMCO established itself as not just high school students another commercial enterprise but as a com- in each district. pany dedicated to playing an integral part in Contrary to public opinion, the life of the community. it ISN'T easy to give away money! You have to work at As GEMCO grew, so did the Foundation. Jim Barnett, manager of the GEMCO Foundation for over a Quarter of a century, In order to localize the efforts of the Founda- it! The Foundation office accompanied by Mary Enlow, the Foundation's office manaaer. 1 Helping Hand Cont'd. CONT'D. FROM PG. 1 MESSAGE FROM STAN Each year, invitations and entry applica- tions are mailed to hundreds of high school being directed toward concentrating on the counselors and principals for GEMCO's completion of those plans and projects that scholarship competiton. As each contest is have already been initiated, without infusing local, nearly 200 people are contacted to act any new projects or programs. as judges for the 31 yearly contests. I'm happy to say, there's every reason to Throughout the years, streamlined meth- be optimistic: This year we will have systems ods have been developed to make it possible that are working for us, making our jobs easier for a small staff to efficiently handle the all the time. And of course we won't have the myriad of necessary functions. In 1983, when merchandise distribution problems that crip- the growth of the company made it impossible pled our success last year. for the Foundation to continue as a two- Our mission for 3rd and 4th quarters will person operation (Mary Enlow and myself, be to maximize each and every sale, continue Jim Barnett). the Foundation was joined by to reduce shrink, get our merchandise onto Ken Sutton. Ken takes on a share of the the floor in the most efficient way possible scholarship competitions as well as handling (after all, we can't sell it when it's in the back the award presentation dinners. room!), and KEEP OUR MEMBERS COMING The Foundation operates on an annual Dear GEMCO Associates: BACK! budget of $330,000, entirely funded by It's easy to settle into a gloomy complacen- LUCKY continues to have great faith in GEMCO, and does not accept outside dona- cy when things haven't gone the way you GEMCO, committing major funds for our tions. Thirty-three percent of the budget is wanted or expected them to. remodel, merchandise information and POS spent for charity: the scholarship program Our second quarter results were a dis- systems in 1987. Let's all make a personal accounts for 51%. Sixteen percent is for appointment to us all, there's no doubt. We commitment to give the rest of the year 110% operating and miscellaneous expenses. The can't undo them-but we can sure make up of our efforts. With your help, it'll be a sue- Foundation's cost to each GEMCO is less than for them with improvement in the 3rd quarter $4,200 per year. In return, each store and a great 4th quarter. The two quarters we ceSSfUI19)k~ becomes actively engaged as a benefactor are facing are the most important of any year, and good neighbor through the efforts of the and in 1986 we have got to give them all we GEMCO Charitable and Scholarship have and make them work! All our efforts are Foundation. T THE HOUSE THAT Fth-reHAA-8~ JACK BUILT MERIT SCHOLARSHIP by Liz Walker t's been said that" all work and no play makes Jack a dull boy" but in this puz- PROGRAM zle, a little hard work is in order. The answer to each clue is a word, name or phrase that contains JACK. For example, the clue ur Merit Scholarship Program was (National Merit Scholarship Corporation, an "Rochester's 39-er" would be JACK BENNY, established for the sons and daughters independent, non-profit organization which while "Day of the (Wild Dog)" is JACKAL. of all of our employees, with the purpose of administers the program) in order to become Answers are on Page 8. honoring academically talented students and finalists. NMSC chooses the winners by helping them obtain a college education. evaluating academic record through high 1. There's nothing he can't do. Children of all LUCKY, INC. employees are school, leadership qualities, extracurricular 2. A trick or two with a squash. eligible to compete for the scholarship accomplishments, the school's recommenda- 3. Serve up a stack. awards, which can range from $500 to $2000 tions, the student's self-description and, of 4. It's a real cut-up. per year for up to four years of college. course, test scores. 5. Many try to hit it. 6. Puff's childish companion. To apply, students need to make arrange- FULL DETAILS ABOUT THIS PROGRAM 7. Close cousin to TV's Mr. Ed. ments with their high school counselor IN ARE BEING SENT TO ALL EMPLOYEES _ 8. The original Big Chill. THEIR JUNIOR YEAR to take the PSAI/NMSQT 9. You wear it well. exam. The fee to take the test is $5. INDIVIDUALLY. T 10. Peanuts, popcorn, prizes. Semifinalists are selected based on test IF YOU HAVE ANY QUESTIONS, PLEASE 11. They did it all for some H20. score results. From there, they must meet CONTACT YOUR CHILD'S COUNSELOR. 12. Wind me up and out I pop. additional requirements specified by NMSC T 2 NEW APPOINTMENTS

In The Stores ... Hardlines at 535, MARY BETH LEWIS to general merchandise manager of Hardlines, Assistant Store Manager, Softlines at 539, JIM HYMAN's responsibilities, formerly vice ecent promotions to Store Manager ANNETTE MAGETTE to Assistant Store president and general merchandising positions are JEFF ELROD (515) and Manager, Operations at 541, MICHELLE WALLY REISBECK (537). manager, Home, have been expanded to FRANTZ to Assistant Store Manager, Softlines include Hardlines. Also as a part of this Jeff joined GEMCO in 1973 as a warehouse- at 523, RALPH CITARELLI to Assistant Store redefinition of roles, JOE NAUGHTON has man. In 1975, he became Warehouse Manager, Operations at 524, and DAVE been appointed vice president and general Manager, serving in that capacity for 5112 POTOPOFF to Assistant Store Manager, merchandise manager, electronics and years, at which time he moved to the floor hardlines at 543. jewelry, and will report to JIM HYMAN. as a Patio Department Head. He has also held In the July issue, we featured an interview the positions of Hardlines Manager, Softlines MICHAEL CLARK, BRAUN HAWKINS and with DOROTHY MAGETTE. Little did we know Manager and Operations Manager. MARTHA HEWITT have recently completed the 8-week Assistant Store Manager-in- then that we would very soon have the Wally began his career with GEMCO in 1974 Training Program and have been promoted pleasure of announcing that Dorothy has just as a cartboy at LaPuente. He quickly moved to Assistant Store Managers, Operations, at been appointed as GEMCO's first Divisional up to sales clerk, working in all of the various 812, 532 and 574, respectively. Merchandise Manager for Cosmetics. JACKIE departments. In 1977, he became a Depart- HENMAN was concurrently promoted to ment Head and, in 1981, a Hardlines Mana- Cosmetics Buyer, and JAN MARTIN to ger. He has also held the positions of Softlines At Buena Park ... Cosmetics Assistant Buyer. Also promoted to Manager and Operations Manager. In a Merchandising Department realignment Cosmetics Assistant Buyer is ROBERTA SOM- Other recent promotions include JOHN following the resignation of BOB ROELL from MERS, replacing SALL! CALLACI, who has GARRETT to Assistant Store Manager, his responsibilities as vice president and been promoted to Field Merchandiser. ~

Member Service CRYPTOQUOTE HANDLING by Liz Walker MEMBER Can you decipher COMPLAINTS this message?

TRY TO RESOLVE THE ISSUE so that by Sue Mullins J BRMUBB SI UDFJVSGSVZ VDZSMO 3• both the member and you feel like "win- VX VFEE ZXR IXNFVBSMO ners." This step is sometimes most dif- ow often have you heard the words, ficult to accomplish. You may feel as -PDIML UJADJ "I want to see the manager!" from if you're giving in or compromising a member who seems to be unhappy? How more than is fair. Please try to remem- Here's how to figure it out: One letter do YOU deal with members who, for one ber that, as a result of your actions, the stands for another. In the following example, reason or another, seem to be dissatisfied member will probably feel better about A is substituted for L, X for 0, etc. Single let- with your store? There have been a number GEMCO and return to spend many more ters, apostrophes, the length and formation of articles written about good customer rela- dollars in the future. of the words are all hints. tions, but all of them share the following tips: If the member is asking for something Example: A X Y 0 L B A A X R First and foremost, REMAIN CALM. 4 • which you don't have the authority to LONGFELLOW 1• Elevating your voice to compete with provide, call the manager or person the member's doesn't accomplish most appropriate to the situation. If the anything, and you'll appear unprofes- member has questions you can't Answer on Page 8 sional to other members. answer, don't guess. Again, call some- one who is knowledgeable about the LISTEN objectively to what your issue. EMPLOYEE APPRECIATION NIGHT 2 • member is saying. As one-sided or The Member Service article in the next WILL BE NOVEMBER 23 THIS YEAR! distorted as the statement may sound, issue will further focus on member complaints Read more about it in next issue of there's almost always some truth to and will include some sample complaints for GEMCO TODAY. what's being said. you to "handle." Stayed tuned! ~

3 SERVICE AWARDS Congratulations to the following employees who celebrated their service anniversaries in July and August

NAME STORE NAME STORE 20 YEARS .~ BLOES, CHARLENE BUENA PARK WILLIAMS, VICKI L. 578 BUTLER, ROSETTA 523 WILT, ERIC M. BUENA PARK CAMACHO, JOHN A. 538 WOODILL PHYLLIS 506 NAME STORE CARBONE, MARY T. 804 ADLER, ALLAN PHARMACY CASTANDEA, ANA M. 534 ~~ ATHERTON, NANCY E. 511 CHRETIEN, KATHLEEN 525 CONKIN, ILENE J. ADVERTISING CROW, SALLY A. 508 5 YEARS ,j ··1 , GOVATOS, ANTHONY PHARMACY DIAZ, SANTIAGO 515 Ii ~iH JABLAN, JUDITH L. BUENA PARK ESCOBAR, RAMONA G. PICO RIVERA EWING, KATHY J. 517 MANDELBAUM, ANNE 501 ALMANZA, RUDY M. PICO RIVERA MELENDY, BRYANT A. 531 FRANCO, PAUL J. 538 • ALMARAZ, JEFF 538 PRINCE, GEORGE F. PHARMACY GARCIA, IRENE 804 GARIBAY, DAVID Y. 522 AMBRIZ, JOSEPH PICO RIVERA SANDERS, GLORIA 509 AMES, KENNETH 516 TRIPP, CHARLES R. 504 GIBBONS, CAROL E. 508 GILL, ROBERTO W. 501 ATHERTON, ROY 545 GOMEZ, LEONCIO PICO RIVERA ATRAT, PATRICIA A. 530 GRABLER, WILLIAM M. 803 AYALA, STEVE P. 571 15 YEARS HARLESS, KATHY J. S. 511 BAXTER, LISA D. 526 HARRITT, NANCY C. 816 BENNETT, ANGELA 536 [i;} HERNANDEZ, LUZ PICO RIVERA BENNETT, JOANA 548 HOUGHAYLEN, GERALD E. BERGKAMP, KENNETH J. 504 ASHLEY, HELEN PICO RIVERA 507 HOWARD, DEBORAH A. BERRY, FRANCES K. 531 BARRETO, ANDRE MONTEBELLO 521 HUNT, REGGIE S. BESANCON, SCOTT C. 510 BECKER, EDWIN L. PHARMACY 531 JENKINS, DENISE E. BIELECKI, LINDA F. 801 BENAVENTE, JOE 542 531 JETERS, SHERRY L. BRADLEY, DARYL R. 510 BONTEMPO, DENISE L. PHARMACY 543 KOONTER, GERALD E. BREWER, DAVID 518 BOYD, GENE T. 533 805 LA PORGA, ALLEN 807 BRILZ, JERRY F. 808 BOYD, ROBERT A. 529 LINN, SHARON M. BURBACH, YVONNE M. 538 CANO, MARY E. PICO RIVERA 530 LOCKO, WILLIAM P. BUZZE, CATHY L. 522 COX, AMI L. 511 805 MARTINEZ, RICARDO CANALES, VALENTINA 505 FAWCETT, RICHARD E. 534 531 MAUSHUND, MARK CENTENO, ALICIA 524 GIORGIANNI, WANDA 805 525 McDOUGALL, CATHY A. COLEMAN, BEVERLY K. PHARMACY GONZALEZ, PAMELA 548 805 McGLOTHLEN, HELLEN PICO RIVERA CONDON, MARCIE J. PHARMACY GUSTAFSON, DONNA E. 528 MONK, DAVID I. COX, PATRICIA A. 531 HECHTMAN, BURTON R. BUENA PARK 542 MONTES, GEORGE B. CRAIG, CASEY R. 543 KAYLOR, 01 ANN 505 521 MORA, DOLORES PICO RIVERA CULBERSON, BETTY 511 KIRKEBY, MICHAEL A. 523 NIETO, DEBRA BUENA PARK CURRAN, TERESA A. 506 MADDOX, GABRIELLE 506 NORSIAN, HEINZ H. LONG BEACH DANGINA, SUSANNE A. 812 ODOR, GEORGE L. 812 OSWANDEL, BETTY PHARMACY DEWEY, EDWARD C. 507 ONO, CLARENCE T. PHARMACY PACKER, BARBARA J. BUENA PARK DOSSEY, JUDY A. 576 OZIAS, THEON F. 528 PRENDERGAST, BETTY J. EDWARDS, DEBBIE A. 533 PASTRANO, DELPHINA PICO RIVERA 506 QUESADA, MICHAEL K. PICO RIVERA ENDARA, GUS J. 527 PEASE, MARGARET A. 520 RAMIREZ, ERNESTINE FELGENHAUER, JANET L. 571 PIMSARN, PACHAREE PICO RIVERA 576 REED, GWEN FIGUEROA, MERI M. 549 ROBILLAR, ANDREE 543 514 RIVERA, ANDREA PICO RIVERA FINCH, MAUREEN J. BUENA PARK RODRIGUEZ, RACHEL PICO RIVERA RIVERA, ILSE T. PICO RIVERA FINEGAN, HEATHER 514 RUSSO, MARSHA E. 521 PHARMACY FINK, JAMES H. 536 SPITZER, NANCI L. RODRIGUEZ, MONA 524 RUPERT, KIM L. 514 FORSMAN, GRICELDA 509 SANTOYO, ROBERT H. MONTEBELLO FULTON, ELAINE R. PHARMACY SCHLOTTER, JEANNIE C. GARCIA, RITA 543 il ~I 802 SCROGGINS, DAN M. 545 GENDREAU, JULIE L. 801 10 YEARS I, . SEARLES, WARREN W. GOMEZ, RACHEL 542 !~Il.' I 'fm#ffi 574 SKERRY, RONALD C. 530 GONZALES, EARLENE M. 801 TALTON, ALONZO 578 GONZALES, HENRY M. 510 ABUCAY, ALFONSO A. 531 TOVAR, VIRGINIA PICO RIVERA GRIFFITS, CARYL J. 573 AGUIRRE, PAUL 525 TSUTSUI, ROSALIND 519 GRUYTER, ANDREW L. 509 BARNETT, CLAUDIA E. BUENA PARK VALENCIA, ROSA L. 534 HAHNI, VERONICA 505 BLADE, SHANE A. 530 WARREN, NOELLA 532 HAMPTON, ALIDA C. 544 BLAKELY, JR., JAMES T. 812 WHITE, ROBIN 512 HANCOCK, MELANIE 503 1 4 NAME STORE NAME STORE L~~ ,1HARKENRIDER, lORRAINE M. PORCEll, CINDY t. PHARMACY 540 HARMON, MARY ANN 547 POTAPOFF, DAVID E. 543 HENDRICKSON, CANDACE A. 535 PUCH, ROSE 506 HENSON, PATRICIA A. 573 QUARTO, PAUL 515 HERTZOG, DENISE 523 QUIRING, REBECCA l. 544 GEMCO HODGES, ZORA t. 802 RAMIREZ, VERONICA M. 576 HOLCOMB, MARIA 532 RICE, JOY D. 527 HOllAND, JOHN J. 806 ROBERTS, FRANK 525 ENEMY NO.1 HOLMAN, DIANA L. 800 RODRIGUEZ, VIVIAN D. 532 HOWARD, BARBARA J. 542 ROMlEY, KRISTINE S. 546 EMCO has initiated a War on Shrink JOHNSON, ROXANN K. 530 ROWLETT, lYRAE A. 571 program. We have identified our prime JOHNSTON, GALE A. 516 SAMAlA, ROBIN S. 545 suspect as being a sly and cunning SHRINK KAGIMOTO, KEITH 507 SCHACKART, MICHAEL 570 MONSTER, who devours GEMCO's profits. KATOPODIS, ELIZABETH 516 SKALSKY, DEBRA L. BUENA PARK We presently have an ongoing training and KELNHOFER, RICHARD L. 550 SLEMAN, DAVID A. 519 awareness program to insure that all employ- .'< KERR, CYNTHIA 801 SMITH, LISA A. 516 ees are well equipped to fight the ongoing KEVANE, lORRAINE M. 571 SNOW, DANNIEllE 529 battle with shrink. KOSSOW, LISA K. 803 SOFFNER, ARTHUR J. 545 KWAN, SUSAN S. 505 STERRITT, KEVIN W. 511 Awareness and teamwork are our Number lAUTEREN, CHRISTINE PHARMACY STEYER, MARK W. 518 One defense. The SHRINK MONSTER has lEE, JR, HAROLD L. 803 STRATTON, THERESA t 520 many disguises: his presence has been asso- lONG, DElSIE PHARMACY SULLIVAN, BLANCHE D. 543 ciated with profit losses in the following areas: lOZANO, MARCELA SUlLl, MONA B. 574 501 • Merchandise theft lUKAS, GAYlA J. 804 TABARES, JOSE 574 lUPERCIO, THERESA I. 534 TERREll, PAMELA G. 520 • Damaged merchandise MacDONALD, LINDA 548 THOMSON, CRAIG W. 541 • Currency handling MACKIE, ANN M. 806 TIBBETS, KEllY 516 • Paperwork errors MARQUEZ, FRANCISCO PICO RIVERA TICKNER, KATHLEEN PHARMACY • Unsafe conditions and work habits MAXWEll, SANDIE 504 TOSCANO, LISA 526 Everyone's assistance is needed to help McCAFFERTY, MIRIAM 547 TRENT, RONALD G. 531 identify and eliminate the SHRINK MONSTER! McKEEN, SANDRA 539 TURCHIN, EDWARD PHARMACY MEEDER, PEGGY 515 TUTT, DEBBIE A. 548 HELP GEMCO STAMP OUT SHRINK! MENDOZA, RICHARD F. 528 TZENG, lAN C. PHARMACY GEIICD MilNER, KATHLEEN 544 UllMANN, HEIDI 516 MOHR, BRIAN C. 512 UMPlEBY, RANDAll l. 523 MOlAKIDES, ANDREA A. PHARMACY URIBE, TERI t PHARMACY NAPOLES, ARISTElA 574 VELASCO, MANUEL BUENA PARK OGLESBEE, JOYCI: A. 570 WALKER, KATHLEEN P 532 OJEDA, JUANITA PICO RIVERA WENZElBURGER, ERIC S. 524 PEOPLES, DARREl A. 572 WOlFSHOHl, HEIDI 575 PEREZ, MOISES T. 806 WYNNE, JANEllE t BUENA PARK PETERS, BETTE 501 YBARRA, YVONNE 506 Keep the SHRINK MONSTER 1..11. where he belongs !! eflf1}e " f1}~ °u ":111 ""'" o, .·/ <;;lS' . 0 ~j vc

GEMCO recently made a cameo appearance in the hot new film, Extremeties, starring Farrah Fawcett. A scene in the film shows a close-up of the wallet that belongs to Marjorie Easton (the character played by Fawcett). And what do you suppose was in that wallet, right behind her driver's license? Why, our very own GEMCO This is a photograph of the scene in Extremeties in which GEMCO's membership card appears. lifetime membership card! T 5 INTERVIEW WITH SAM PARKER

ne of the first things that would strike the company was facing, he knew that LUCKY ply the art of buying and selling product. What you while talking with Sam Parker, would make good use of his experience and and how your business buys and sells may GEMCO's new president, is that he is clearly would provide an exciting new challenge. He differ, but being a successful retailer always a fact-oriented, strategic thinker. A little accepted the offer. involves dealing with the needs of people, both employees and customers. Good com- further into a conversation with him, however, Sam Parker joined LUCKY as president of you'd begin to detect a second pattern under- the Automotive Division and helped the peo- munications and helping people to function lying that analytical manner. You'd hear ple in that organization achieve a significant as a team are critical to success. phrases like" need to communicate," "team- turnaround in profits following several years There is a lot of similarity in the operations work" and "developing people," again and of intense change and restructuring. of GEMCO, LUCKY Automotive and Sav-On- again. And by the end of your discussion, it I'd say about an 80% overlap-which allows wouldn't surprise you a bit to learn that Sam This July, Sam was asked to join GEMCO a direct transfer of many of the skills I had Parker's successful reputation lies primarily acquired in past experiences. As for the other in the fact that he is first and foremost a 20%, and the fact that GEMCO is a more people person. complex operation, well, that's what makes Only 43 years old, Sam has worked in retail Communications it a challenge. for pretty much the last 27 years, beginning I think probably just as important as the as a clerk in a midwest variety store at age and Teamwork are operational similarities is the close parallel in 16. After earning his business degree, he went the stage of development of each organ- into the Navy, where he ran the Naval Post Absolutely Essen- ization. Sav-On experienced many major Exchange ("PX"). After the service, Sam tial for Gemco at changes quite similar to what GEMCO has went back to school to earn his M.B.A. in been going through during the past year. My Finance, following which he began a career this polnt. job at Sav-On was to help guide the organiza- with Jewel Companies, a large Chicago-based tion through that change and to improve its retail company. He began as a management marketing visibility and profits. Through that trainee in one of their food divisions and experience, I learned to recognize some of the quickly progressed through operations and as president and chief operating officer, obstacles that face an organization and its merchandise ranks until, in 1981, he was reporting to Stan Brenner, chairman and chief people in a period of change. Needless to say, appointed president and chief executive officer executive officer. I learned what to do-and, just as important- of their Sav-On division. He was just 38 years ly, what not to do. We talked to Sam to get to know the man old. WHAT DO YOU VIEW AS THE MAIN behind the reputation, and found him to be As Sam was accomplishing one challenge OBSTACLES FACING GEMCO? very friendly and candid. Here are some of after another, there was still one he had yet the thoughts and observations he shared We've really left most of the major to realize-an ambition to sail his 36-foot about GEMCO and about himself. obstacles behind-it's just that we're still not sailboat around the world. And, after serving finished experiencing their effects. Over the as Sav-On's president for four years, he HOW DOES GEMCO COMPARE TO COM- years, we've experienced a lot of success at decided it was time to "retire" to do just that. PANIES YOU'VE WORKED WITH IN THE GEMCO. Unfortunately, success oftentimes About that time, however, he was invited PAST? lulls an organization into complacency. to join LUCKY, Inc. Well aware of the changes Most retailing is basically similar. It is sirn- Change is not a high order of priority. Stand-

6 ingstill doesn't work in any industry, least WHAT WOULD YOU SAY ARE GEMCO'S need to remember it's people, not systems, of all retailing. It's like wearing the same ward- MOST PRESSING ISSUES? that run a business. robe, without ever updating it, replacing the GEMCO has the highest cost of business Fourth, and perhaps most importantly, we lworn items. Eventually, your clothes begin to need to be able to execute strategies and pro- of any discount store in the country, which split at the seams here and there, becoming makes it very tough to compete with well- grams in a superior manner. We must achieve threadbare and obsolete. In GEMCO's case, operated chains like TARGET. The bulk of this that 20% improvement in our effectiveness. we weren't investing enough in state-of-the- cost, as with any retailer, is in employee art information systems, merchandising ap- wages and benefits. It's hard to compete DO YOU REALLY THINK COMMUNICA- proaches, training and development programs effectively with the kind of expense load we TION IS ALL THAT IMPORTANT? and store capital to keep us fresh and carry. We need to figure out a way to be more competitive. productive, to get our operating costs on a Yes, I do. I think it's one of the most im- When we started to realize our mistake- competitive basis. portant things we can do at GEMCO if we're and that was as far back as five or six years What makes this more difficult is that our going to get anything accomplished. I think ago-we tried to correct it too fast, perhaps members have come to expect certain levels that, in the middle of so much change these overestimating the ability of the organization of member service from GEMCO and won't past few years, we sometimes forgot to com- to handle the changes and still run the tolerate less than that. We've got to recom- municate with each other. We've started to business day to day with acceptable profit- mit ourselves to more than competitive levels fix that. For example, once a month, district ability. I cite the example of our much-needed of member service. managers will sit down with the buyers and conversion to central checkout. We simply did various other support people to talk about a bad job of executing this important change. SO, WE HAVE TO BE MORE CREATIVE? common opportunities, common problems and how best to solve those problems. HOW SO? Yes, but creativity takes you just so far. We have a manager's council that's more We attempted the change without fully We also have to be realistic. The solutions than just a gesture. It's a group of store considering the learning curve of our employ- we're looking at right now are more STRUC- managers who will consult with management ees and members and without developing TURAL, such as how to get product on the on a variety of topics affecting the stores. appropriate scheduling procedures. We shelf at the lowest possible cost. Right now, accompanied the conversion with a major we're double- and triple- handling much of our We've asked our store managers to meet reduction in workforce, and unfortunately paid merchandise; we need to work out more effi- with group managers and assistant store a price for it with poor member service. We cient procedures. managers regularly to review the business. have since reinstated some of the work hours When you consider the challenges of our We're also taking care of other structural business, it's a small investment. and flexibility into the store. And I think that's problems. Promotional Price Look-up will be paying off already, in better member service. in all the stores within a couple of months, Communication and teamwork are abso- The big issue is not a stragetic one. Strategi- eliminating the need to price and reprice sale lutely essential for GEMCO at this point. cally, we're going in precisely the right direc- items. That will help. Scanning will be imple- HOW DO YOU FEEL ABOUT INTERNAL tion. The big issue is running the business day mented in 1987 and will also help. We're also PROMOTION VS OUTSIDE RECRUITING? by day more effectively. My initial impression looking at our other costs-utilities, supply is that we are at about 80% effectiveness. We costs, etc. need to achieve 100% effectiveness. Good My philosophy is that if we do our job right, strategies cannot be successful without out- Strategically, the thing that will make or and that means recruiting the right people into standing execution. break us in the future is in how well we can entry-level jobs who can, with training and reduce our cost of doing business while im- experience, grow into greater responsibilities, WHAT ABOUT GEMCO'S PROSPECTS FOR proving member service. then we should be able to grow the business THE FUTURE? mainly through internal promotion. WHAT ARE YOUR SPECIFIC PLANS FOR However, I think it's important to be able I think they're excellent. As I said, GEMCO OPERATIONS? to assure all GEMCO associates that the peo- strategically, we're right on course. I think ple charged with leadership roles at GEMCO we're now moving at a pace which allows our are the most qualified people possible, people to execute that strategy and to better One, consider the feasibility of new ideas before we implement them. I think it's impor- regardless of their backgrounds. The first serve our members. question I will ask when filling a job is, who tant to support new ideas but we need to be do we have internally as a qualified candidate GEMCO is unique. We really DO have lower practical in what we expect and can imple- for that position? But if we don't have a overall prices than our direct competition, as ment. The people carrying out these ideas qualified candidate, we will not hesitate, in the well as wider assortments, one-stop shopping need to be given the required support, guid- best interests of the business and our convenience, and hopefully MUCH better ance, and training. customer service. We also have several other employees, to look outside. important strengths we can capitalize on: Our Two, we need to communicate much bet- approach to selling major appliances is unique ter and start working as a team again. We WHAT FUTURE CHALLENGES DO YOU for a discount retailer, as is our presentation need to reliven the attitude of "we" instead SEE FOR YOURSELF? of apparel. In the hardlines area, the rules are of" me," of being patient to get things done a bit simpler: maintain low prices, a wide and impatient if they're not done right. Being the president of GEMCOwill keep me assortment, member service as appropriate, busy and challenged for a long, long time, I and instock conditions at all times. All in all, Three, we need to do more and more train- have no doubt. But, after that? I don't know. I think GEMCO is a unique and viable marketing and development of our people. I talk I've always wanted to sail around the ing concept. about the need for better systems, but we world... ~ 7 Everybody's Business

Flood the Market

Laundered Money

Take a Bath THE WATER Solvency

MODEL Deposits OF FINANCE by Jerry Fister Sinking Fund Pump Money In discovered the following in a book Capital Drain called A Whack on the Side of the Frozen Assets Head, about creative thinking, written by Roger VanOeck. As an example of how we use metaphors in life (describing something Float a Loan by comparing it to something else that is more familiar), Mr. VanOeck stated that "Whenever I do any work with bankers or accountants, they talk about what they do as though they were plumbers. And no wonder! They use the "Water Model of Finance" to describe their work: KEYS TO SUCCESS

veryone wants to succeed. We all 10. Oral expression admire the "successful person." But 11. Concern for others Answers: how do we measure success and how do we 12. Luck determine when we have achieved it? I think Gallup also noted that most successful Answers to puzzle on page 2 of success as a journey and not a destination. people have a happy home life, a love of 1. Jack of all trades A "successful person" is just a person who reading and a desire to excel. Successful 2. Jack o'lantern has had a number of individual successes. My people also were able to deal with the 3. Flapjacks definition of success is progressively realiz- inevitable failures along their road to success. 4. Jack knife ing a worthy goal. As Paul H. Dunn once said, "It matters not 5. Jackpot A recent book, The Great American Suc- if you try and fail, and try and fail, and try 6. Little Jackie Paper cess Story, by Gallup, found that successful and fail again. But it matters much if you try 7. Jack ass people share the following characteristics: and fail, and try and fail, and fail to try again." 8. Jack Frost 9. Jacket 1. Common sense We can be successful in our personal lives 10. Cracker Jacks 2. Specialized knowledge in their field and in our professional lives if we are willing 11. Jack and Jill 3. Self-reliance to plan and work for it. 4. General intelligence 12. Jack-in-the-box 5. Ability to get things done And GEMCO can continue to be a success- 6. Leadership ful company if we all work for it. We have a Answer to puzzle on page 3 7. Knowledge of Right from Wrong plan, we have leadership and we have the A HUNCH IS CREATIVITY TRYING 8. Creativity GEMCO family of employees. TO TELL YOU SOMETHING. -Frank Capra) 9. Self-confidence Now, let's make it happen!

8 AROUND THE COMPANY Compiled and edited by Debbie Howie

• ere is a clip from a recent issue of the Congratulations to RICK SCHLACHTER, ,. CHICO ENTERPRISE RECORD news- son of LINDA SCHLACHTER, accounts paper: payable clerk at GEMCO Victorville (DISTRICT Extra Warranty Pays Off - I think GEMCO 6). Rick was awarded the U.S. Achievement is an excellent place to shop. I went in there Academy Award in Math, a membership in and bought a microwave two years ago. I had the Society of Distinguished American High to have it fixed last month and found out that School Students, and a $600 college scholar- the warranty was over in a year. I also found ship. out that GEMCO covers the second year on the warranty. I believe they should receive a lot of consideration.

Every year, "Supersoil" sponsors a fishing trip for all GEMCO store managers. This year, about 35 people left on a Saturday night from San Pedro to try their luck at catching fish off of Catalina Island. For a little added incen- tive, each person put $5 into a jackpot to be given to the person who caught the largest fish. ROLF GEHRUNG (manager, DISTRICT 7) caught his halibut about 3:30 a.m. while everyone else was still sleeping. It won him the $125 jackpot! On July 11-13, GEMCO held a Sidewalk Clearance Event. All stores were asked to put up a hot dog and Coke stand, to be staffed Congratulations to BRYANT MELENDY, who retired from 531 (DISTRICT 1) on July by a local charity, with 50% of the proceeds GEMCO 512 has spirit! The employees of 29 after 20 years service with the company. to be donated to that charity. Our Cathedral Walnut Creek (DISTRICT 2) decided to kick Bryant, who has worked as Sundries Depart- City store (DISTICT 6) donated $638 to the off the new uniform program by having a ment Head, Drugs Department Head, Reserve Boys and Girls Club of Cathedral City. The "Blue Friday Buffet." It was a very successful Stock and in Sporting Goods, will be starting store Manager Charlie Caton was proud to start to the new GEMCO Look. MICHELE his retirement with a visit to his son in donate the money to the' 'future foundation MADEROS (group manager, Home Furnish- Tennessee. Best wishes to you, Bryant, for of our nation." The boys and girls who ings), CHERI DUBOIS (group manager, a long and happy retirement! worked at the booth did a fantastic job, Housewares and HBA) and MERLE KLUG especially considering the 1100 weather. (receptionisUbackup store secretary) organ- ized the buffet and promoted employee parti- The following picture and caption appeared cipation. Employees were able to show off A recent note from the Childrens Hospital recently on the front page of the Modesto Bee their creative cooking talents, which are of Orange County (DISTRICT 8): (DISTRICT 1): considerable! "We of the Parent-to-Parent Infant Support Group at CHOC wish to thank all of the wonderful people at the Fountain Valley GEMCO for inviting us to participate in your July 11-13 Sidewalk Sale festivities by allowing our group to maintain and operate the store's hot dog booth. Both managers RICH HIBBEN and PAUL TUTTlE were extremely helpful as were all the young men and women who regularly checked on our needs and kept us supplied with the necessary items. GEMCO is to be commended for its public- spirited attitude by allowing non-profit groups to participate in this activity. It's support such Yippee-ti-yi-yippee! Michael Nunoz, 17, steers his latest wayward herd of shopping carts across Standiford Avenue back to as this that encourages volunteer organiza- its home turf at the GEMCO store. Nunoz. a courtesy clerk and cart herder for the store, periodically rounds up the strag- glers which have strayed off toward the McHenry Club Apartments. Nunoz said his job has its rewards-plenty of time out- tions to continue to function. Keep up the side and lots of exercise during round-up's. good work! ,

9 KIMBERLY AGAN LISA C. FUNARO From: Children's Clerkl814 PEOPLE ON THE MOVE From: Ladies Clerkl811 To: Group Mgr Home Furn.l814 FOLLOWING IS A LISTING OF PROMOTIONS AND HEW HIRES To: HswrslLifestyl Grp Mgr/811 DAVID J. AGNEW THAT OCCURRED IN JUNE AND JULY. ANDY GARCIA From: (new hire) From: Hardware Cierkl80? To: Loss Prevention Agent Best wishes to the following employees in their new assignments with GEMCO. To Spts/Auto/Hdwr Grp Mgr/80? JEFFREY AGUILAR STEPHEN BERTONCIN JOHNNY C. DOMINISAC DELIA GARCIA From: Audio Clerkl821 From: Store CierklS03 From: PatioiToys Group Mgr/801 From: Cosmetics Cierkl80? To: Home Entertainment Mgr/821 To: Backroom Manager/S03 To: Member Service Mgr/S19 To: Ladies Group Manager/80?

JEAN ALEXANDER ROBERT BETTS JR. DIANNE DONALDSON NORMAN GEBO From: Domestics Clerkl811 From: P.O.S. Store Trainer From: Jewelry Sales ClerklS38 From: Group Manager/502 To: Domestics Grp Mgr/811(Act) To: Member Service Mgr/S01 To: Jewelry Manager/503 To: Group Manager(key)/S72 DAVID ALTRINGER RICHARD BJELKE YVONNE DOSS EARLENE GONZALES From: (new hire) From: (new hire) From: Clerical From: Domestics Clerkl801 To: Loss Prevention AgenV81S To: Loss Preven. Agent/SSO To: Asst. Data Control Supvr To: Domestics Group Mgr/801 RICHARD ANKER MIKE BLEVENS CAROLYN DUNSMORE KATE GOODLET From Grp Mgr-HBNHswrs/S17 From Cash Office CierklS75 From: Jewelry/Dia. Sales/820 From: (new hire) To: Stock Crew Mgr/S17 To: Cash Office Manager/S27 To: Ladies Group Mgr/820 To: Loss Preven. AgenV81S THURMAN ASH PAUGH TERI BODELL DENISE DYE BENEDICT GOSSO From: Loss Preven. AgenVSOS From: MenS/Child Grp Mgr/S79 From: Cash Office Cierkl54S From: ASM·Operations/S78 To: Loss Preven. Store Mgr/S06 To: ASM·Softlines/S79 To: Member Service Rep/S4S To: Regional Pers/Trng Coord ROGER ATKINS BRUCE BONAR LEROY CARTER C. GRANT COTIINGHAM GLORIA ELlXSON WES GRAHAM From: (new hire) From: Domestics Group Mgr/S01 From: Night Stock Clerkl818 From: Special Assignment From: ReceptionisV578 From: Cashier/540 To: ASM-in-Training To: ASM-Hardlines/S72 To: Home Entertain. Mgr/818 To: VP., Regional Director To: Store Secretary/S76 To: Member Service Rep/540 HENRY AVILLA VINCENT BONES VICKI CARY TERRI CRAIGHEAD SAUNDRA ELSNER SALVATOREGRAY From: ReceptionisV526 From: (new hire) From: (new hire) From: Data Processing Supvr From: Loss Preven. AgenVS41 From: Recreation Clerkl800 To: Loss Prevention AgenVSOS To: Loss Preven. AgenVS24 To: Store Secretary/S28 To: Data Entry Programmer To: L.P. Store Manager/511 To: Backroom Manager/S39 JOHN BAKER TRACY BOWDEN RUTH CASADEN PAUL CRAYTON DARLENE EMERY TIMOTHY GREENAN From: Programmer/Analyst From: Mgr Trainer/S41 From: Cashier/S7S From: (new hire) From: Mens/Childs Clerkl523 From: Stock Crew Manager/821 To: Sr. Programmer/Analyst To: Member Service Mgr/SOS To: Member Service Rep/S7S To: Loss Prevention Agent To Sports/Hdwre Grp Mgr/S23 To: ASM·Hardlines/S28 RONALD BAKER JR. CARL BROWN ANITA CASTRO ANNA CRVARICH JAMES ESQUER RONALD E. GREEN From: Cashier/S7S From: Loss Prevention AgenVS14 From: (new hire) From: Member Service Rep/S78 From: (new hire) From: (new hire) To: Loss Preven. Store Mgr/S43 To: Loss Preven. AgenVSO? To: Member Service Rep/S7S To: Member Service Mgr/810 To: Loss Prevention Agent To: Store Manager-in-Training SEAN BARKER KEVIN R. BROWN PAIGE CHAFFEE VICKY CULVER ELLEN EVANS JANE GROZENSKI From: Data Maint. Clerkl816 From: HBA CierklS19 From: Patio Group Mgr/S21 From: Domestics Clerk From: Store Secretary/538 From: (new hire) To: Sports/Hdwre Grp Mgr/816 To: Member Service Rep/S19 To: ASM-Hardlines/S43 To: Domestics GM To: Regional Operations Secy To: Loss Preven. AgenVS03 ROBERT BARNES LlNOA BROWN KATHY CHICKLENIS THOMAS O. OALY NARDA FARGOTSTEIN DALE HAAS From: (new hire) From: Audio Clerkl812 From: (new hire) From: Member Service Rep/S4S From: (new hire) From: (new hire) To: Loss Preven. AgenVS72 To: Home Entertainment Mgr/812 To: Personnel Rep/819 To: PatioiToys Group Mgr/545 To: Programmer/Analyst To: Creative Director/Adver. STEPHEN BARRETO ANNE MARIE BULGER RICHARD CHRISTENSON SUSANNE D'ANGINA DEBBIE FAST CINDY HAMAN From: (new hire) From: (new hire) From: Sports DH/574 From: Stock Crew Clerkl812 From: PatioiToys Grp Mgr/S01 From: Housewares CierklS12 To Loss Prevention AgenVS11 To: Procedures Writer To: Stock Crew Mgr/S37 To: MenS/Childs Group Mgr/812 To: Stock Crew Mgr/S01 To: Stock Crew Manager/512 WILMA BARTLETI JAMES F. BURNS FRANK CHUNG LANETIE DAVIS JOHN FElL JACKIE HARPER From: (new hire) From: Cashier/S36 From: Loss Preven. AgenVS22 From: Ladies ClerklS04 From: Camera Sales/524 From: Membership CierklS29 To: Programmer/Analyst To: Member Service Rep/S36 To: LP. Store Mgr/S22 To: Domestics DH/S04 To: Fine Jewelry Mgr/512 To: Member Service Rep/529 TONJA BASTRUP THOMAS BYRD RALPH CITARELLI REGINALD DAVIS ROBERT FELDMAN WILLIAM R. HARTLEY From: Backroom Mgr/S03 From: Member Service Rep/S41 From: Loss Preven. AgenV536 From: (new hire) From: Patio CierklS39 From: (new hire) To: ASM-Homeworld/524 To: Member Service Mgr/S16 To L.P. Store Mgr/S36 To: ADCS Analyst To: Sports/Hdwre Group Mgr/S3~ To: Loss Preven. AgenV804 ROBERT A BATCHELOR DOLORES CALDERON DAVID CLARK VICKI DAVIS PAUL K. FELT BRAUN HAWKINS From: (new hire) From: Sr. Programmer/Analyst From: Cash Office CierklS02 From: P.T. Production Artist From: (new hire) From: ASM·in·Training To: Loss Preven. AgenV80S To: Project Leader To: Cash Office Manager/S02 To: FT. Production Artist To: Loss Prevention Agent To: ASM-Hardlines/532 RICHARD BATII STON I RAY CAMACHO IRVON CLEAR IRENE DEAN RONDA FINISTER DEBBIE HEINZ From: (new hire) From: Store Manager/S37 From: Central Station Supvr From: Small Electrics CierklS24 From: Price Change ClerklS04 From: Membership CierklS29 To: Project Engineer To: Hardlines Merchandiser To: Central Station Sr. Supvr To: Housewares DH/S24 To: Store Secretary/S38 To: Member Service Rep/S29 SHELDON BEDRIN BRIAN CAMPAGNA RICHARD E. COLLIER CLIFTON DELL NORA LYNN FITIINGER KEVIN HENRY From: (new hire) From: Store Mgr·in·Training From: Patio DH/810 From: Sr. Programmer/Analyst From: Mens Cierkl80S From: (new hire) To: Loss Prevention Agent To: Store Manager/S09 To: Stock Crew Manager/810 To: Project Leader To: Domestics Group Mgr/80S To: Loss Preven. AgenVS79 KAREN L. BELEZZUOLI TIMOTHY CANNON DAVID COLLI FLOWER JOSEPHINE DEMERS MARC FLASHNER JOHN HERRERA From: Jewelry CierklS20 From: Domestics CierklS12 From: HBNStaVCandy DH/S24 From: (new hire) From: PatioiToys Grp Mgr/S14 From: HBNCosmlHswrs DH/S11 To: Home Entertain. Mgr/S37 To: Domestics DH/810 To: Stock Crew Manager/524 To: MenS/Childrens GM/S28 To Stock Crew Manager/536 To: Stock Crew Manager/S11 BRIAN R. BERARD DIANE CANOVA RONALD COPE KATIE DIAZ OMAR FONSECA ROSALYN HISLE From: (new hire) From: Ladies CierklS26 From: Stock Crew/S03 From: ChildS/Mens Grp Mgr/514 From: (new hire) From: (new hire) To: Project Engineer To: Group Manager/S26 To: Sports/Hdwre Group Mgr/S04 To: ChildS/Mens Grp Mgr(key)/S14 To: Loss Preven. AgenVS14 To: Loss Prevention Agent MICHAEL BERECOCHEA ROBERT CAPLES LARRY D. COPUS JIMMY R. DIERMEIER TONI FORCE From: Pharmacist From: Receiver/81S From: Member Team III (Temp) From: ASM-Operations/821 From: Loss Preven. AgenVS46 FLEErom: HOMANHardware Group Mgr/819 To: Pharmacy Managerl136 To: Backroom Manager/81S To: Remodel Team III Member To: Store Manager/S14 To: LP. Store Manager/808 To: Stock Crew Manager/819 1-' KENNETH BERGKAMP ROBERT CARDARELLI RONNY CORONA RANDY DISNEY MIYUKI FUJIMOTO GREGG HOOK From: Sports DH/S04 From: (new hire) From: Stock Crew Cierkl80S From: (new hire) From: (new hire) From: Jewelry Sales CierklS41 To: Stock Crew Manager/S04 To: Loss Preven. AgenVSOS To: Home Enter. Group Mgr/80S To: Remodel Team IV Member To: P.T. Camera Operator To: Jewelry Manager/S20

10 LEONARD HOWLETT MARY BETH LEWIS MARY MULCAHY TAD QUINLAN DAVE SHElTUN MARIO S. TORRES From: Loss Preven. AgenV577 From: Member Service Mgr/B16 From: Ladies DH/578 From: Remodel Team Mbr Team I From: (new hire) From: Draftsman J To: L.P. Store Manger/577 To: ASM-Softlines/539 To: ASM-SoftlineS/B10 To: Asst Team Leader Team I To: Remodel Team Mbr Team II To: Senior Draftsman CHARLES HUNT LARRY L1ERAS MICHAEL MULCAHY DESON REDD ELIZABETH SHIPKEY PEGGY TORRES From: Stock Crew Manger/541 From: Loss Preven. AgenV504 From: (new hire) From: (new hire) From: Personnel Rep/B19 From: Loss Preven. AgenV524 To: ASM-Hardlines/575 To: L.P. Store Manager/509 To: Loss Preven. AgenV577 To: Loss Preven. AgenV507 To: Personnel Administrator To: L.P. Store Manager/524 HOWARD JACOBS JAMES W. LINDSEY KEVIN MURPHY JODI REEDER SABRINA SIEVERT PAULA TROll From: (new hire) From: PI Night Recovery/B01 From: Loss Preven. AgenV519 From: Mens DH(Act)/B09 From: Mens/Childs Grp Mgr/B11 From: Member Service Rep/576 To: P.O.S. Trainer To: Loss Prevention Agent To: PI Member Srvc Rep/B01 To: L.P. Store Manager/B03 To: Mens DH/B09 To: ASM-Softlines(Act)/B11 JESUS UCCLES JOE JARAMILLO LINDA LLAMAS IRENE NAIR DAVID SIMS AUDREY REGAN From: Stock Crew Manager/502 From: Loss Preven. AgenV576 From: Loss Preven. AgenV574 From: Cashier/537 From: Cash Office Clerkl542 From: (new hire) To: ASM-Hardlines/529 To: L.P. Store Manager/505 To: L.P. Store Manager/574 To: Member Service Rep/537 To: Cash Office Manager/542 To: Remodel Team Mbr Team IV ROY UYEDA TERI JESSUP REGINA LOPEZ FRED NELSON WALLY REISBECK JOHN SIVERSON From PharmacisV141/B21 From: Stock Crew/520 From: (new hire) From: (new hire) From: ASM-Operations/574 From: Backroom Clerkl578 To: Pharmacy Manager/141/B21 To: Domestics Group Mgr/520(A( To: Personnel Rep/821 To: Remodel Team Mbr. Team III To: Store Manager/537 To: Stock Crew Manager/578 KURT VAN CLEAVE ANGELICA JIMINEZ DENNIS LORENCZ GORDON NELSON LAURELEE TERI REITSMA BEVERLY SNIDER From: (new hire) From: Toy Clerkl536 From: Project Mgr - Store Plan From HBAlHwrs Group Mgr/541 From: (new hire) From: Loss Preven. AgenV546 To: PatiolToys Grp. Mgr/530 To: Member Service Rep/536 To: Retrofit Mgr - Engineering To: Stock Crew Manager/576 To: Loss Preven. AgenV507 To: L.P. Store Manager/546 DEWEY VAN HAASTERT DENNIS JOHNSON WALTER LYMAN JR. DARLENE NIELSEN JUDY REYNOSO JOY SNYOER From: L.P. Store Manager/577 From: Hardware Clerkl575 From: (new hire) From: (new hire) From: Stock Crew Clerkl511 From: Domestics Grp Mgr/801 To: District L.P. Manager To: Sports Group Manager/575 To: Loss Preven. AgenV550 To: Programmer/Analyst To: Stock Crew Manager/801 To: HBAICosm/Hswrs Grp Mgr/511 JACOB WANHALA JUOY JOHNSON DIANE LYNCH GARY NOVOTNY EDUARDO G. REZA CHRISTOPHER A. SOZA From: Hard Goods DH/574 To: Member Service Mgr/574 From: Cash Office Clerkl535 From: (new hire) From: Programmer/Analyst From: Loss Preven. AgenV576 From: (new hire)' To: Cash Office Manager/535 To: Loss Preven. AgenV817 To: Sr. Programmer/Analyst To: Civil Restitution Coord. To: Loss Preven. AgenV546 THOMAS E_ WARDEN BEVERLY C. KELLING MIKE MaciSAAC MARINA ORTIZ From: (new hire) BECKY L RICHARDS JACKIE SPENCER To: Loss Prevention Agent From: Domestics DH/544 From: Group Manager/527 From: HBAICandy/StaVHswr GM/801 From: P.T. Cashier/B11 From: Stock Crew Mgr/514 To: Stock Crew Manager/544 To: Member Service Mgr/527 To: Member Service Manager/801 To: PI. Member Srvc ReplB11 To: ASM-Hardlines/519 DANIEL WATERS From: HBAICandy/StaVHswrs ROBERT KELLY JR_ WIL MADDUX STEVE OWENS CAROL ROBLES ROBERT ST. GEORGE Cosm/804 To: Backroom Mgr/804 From: (new hire) From: SportsiHdwre DH/541 From: Patio Clerkl504 From: Childrens Group Mgr/575 From: (new hire) To: Programmer/Analyst To: Stock Crew Manager/516 To: Patio DH/504 To: Member Service Mgr/575 To: Programmer/Analyst SHARI WEDELL From: P.T. Budget Analyst ELENA KETTLER SHAUNA MAHLER RUDY PADILLA CASSANDRA ROGERS TIMMY STELL To: F.T. Budget Analyst From: Jewelry/Camera Clerkl503 From: Softlines Clerkl541 From: Patio Clerkl533 From: Loss Preven. AgenVB10 From: (new hire) To: Home Entertain. Mgr/503 To: Domestics Group Mgr/541 To: PatiolToys Grp MgrIB03 To: L.P. Store Manager/510 To: Loss Preven. AgenVB17 DEBRA WESTERFIELD From: Warehouse Marker/536 CAROLYN KIDD DIANE MARLOWE TED M. PADRES MARTIN ROGERS JAMES STEPHENSON To: Cash Office Manager/519 From: Night Recovery/548 From: PatioiToys Grp Mgr/526 From: Hardware CierklB19 From: Loss Preven. AgenV51B From: (new hire) To: Member Service Rep/548 To: ASM-Softlines/501 To: SportsiHdwre Grp Mgr/B19 To: L.P. Store Manager/809 To: Loss Preven. AgenV537 ZACH WHALEY From: Warehouse/Dock Worker/810 JOYCE KIERSTYN MICHAEL MARRS NANCY PALMA PHILLIP D. ROGERS KAREN STEVENS To: Stock Crew Manager/B10 From: Loss Preven. AgenV534 From: Sm EleclStaVSund DH/806 From: Housewares Clerkl503 From: (new hire) From: Cashier/550 To: L.P. Store Manager/534 To: Stock Crew Manager/BOO To: Member Service Manager/503 To: Loss Preven. AgenV507 To: Member Service Rep/550 KEN WHITTENBERG From: Stock Crew CierklB01 MICHAEL KILBURN MICHELLE MARTIN KARLA D. PAYNE RENEE ROJAS JON STOKES To: Sports/Hdwr Group Mgr/801 From: Production Analyst From: Member Service Rep/801 From: (new hire) From: Clerkl510 From: Loss Preven. AgenV508 GRACE WIELANOT To: Operations Analyst II To: Ladies/Access Grp Mgr/B01 To: Loss Preven. AgenVB21 To SportslHdwre Grp Mgr/510 To: Central Station Supvr./B.P. From: Group Manager/515 HYUNSOOK KIM CONNIE MAYS JULIE PERINI DE LOURDES RUIZ WILLIAM STOKES To Group Manager(key)/515 From: (new hire) From: AlP Clerkl550 From: Credit Officer Clerkl576 From: Asst Buyer-Ladies From: Patio DH/810 TERI WIGERT To: Sr. Programmer/Analyst To: Store Secretary/550 To: Cash Office Manager/576 To: Adver. Coord. Apparel To: Member Service Mgr/535 From: Credit Manager/520 To: Member Service Mgr/522 MIKE KLINGSPORN JAMES McLAIN MARTIN PETERSON PAUL SALCEDO JOHN STORMS From (new hire) From: Receiver/572 From: Programmer/Analyst From: (new hire) From: (new hire) SHARON L WILLIAMS To: Loss Prevention Agent To: Backroom Manager/575 To: Sr. Programmer/Analyst To: Loss Preven. AgenV538 To: Loss Preven. AgenV502 From: (new hire) To: P.O.S. Coordinator VICKIE L KOLLMEYER MARILYN MERGELE PATRICIA PETERSON HECTOR C. SANDOVAL KEVIN W. STROING From: Sr. Programmer/Analyst From: (new hire) From: Personnel Rep/816/539 From: (new hire) From: Audio Clerkl542 MARY JEAN WILLIS To: Project Leader To: Camera Operator/Adver. To: Member Service Mgr/B16 To: Layout ArtisVAdvertising To: Home Entertain. Mgr/531 From: Credit ClerkiBOO To: Cash Ofc Mgr(Act)/BOO GARY KURTH DANIEL V. MEYER DOLORES PFEFFER KELLY SANTIAGO GREGORY SWARD From: Home Enter. Clerkl548 From: (new hire) From MenS/Childs Grp Mgr/509 From: Ladies Group Mgr/807 From: (new hire) MYRA J_ WILSON To: Home Entertain. Mgr/548 To: Store Manager-in-Training To: ASM-Softlines/509 To: ASM-SoftlineS/B07 To: Remodel Team Mbr Team IV From: Membership/521 To: Store Secretary/521 CHARLES LATTA DEBORAH MILLER JEFFREY PINKSTON JEFF SCHETTLER DEBBIE SWIFT WILLIAM WOLF From: Pharmacist From: Home Furn. Grp Mgr/B21 From PatiolToys Grp Mgr/541 From: Stock Crew Manager/B01 From: Domestics Group Mgr/521 From: Receiver/501 To: Pharmacy Manager/170 To ASM-Softlines/520 To: Stock Crew Mgr/541 To: ASM-Hardlines/B07 To: Member Service Mgr/521 To: Backroom Manager/501 CASSANDRA LAVALLIE BRENDA MILLS LISA POLING WILLIAM SCHRODER GERALYN A. TAYlOR JOHN WOLTER From: SportsiAuto/Hdwr GM/570 From: (new hire) From: (new hire) From: Domestics DH(act)/578 From: P.T. ReceptionisV515 From: Sports Group Mgr/506 To: P.T. Member Srvc Rep/515 To: Member Service Mgr/570 To: 3rd Party Admin.lPharmacy To: Loss Preven. AgenV528 To: Ladies DH/578 To: Stock Crew Manageri572 LARRY LEACH GRACE MITCHELL CHERYL PREDIGER BONNIE SCIARRA BREIT THISTLE MAYLENE WOODS From: Operations Manager From: P.T. Credit Clerkl515 From: Stock Crew Clerkl521 From: Credit Office Clerkl506 From: Jewelry Clerkl527 From: (new hire) To: Computer Operations Mgr To P.T. Member Srvc Rep/515 To: Domestics Group Mgr/521 . To: Member Service Rep/506 To: Home Entertain. Mgr/527 To: Production ArtisVAdver. MICHAEL LEAVINS LES MOOERS ALLAN PROCEL KIMBERLY SEMPSON RONALD THOMPSON EDWARD YRIGOLLEN From: L.P. District Gtr Supvr From: Hardware Glerkl810 From: Jewelry ManagerlS77 From: (new hire) From: (new hire) From: Loss Preven. AgenV545 To: L.P. District Manager To HBAlHswrs Group Mgr/B10 To: ASM-Homeworld/811 To: Loss Preven. AgenV819 To: Loss Preven. AgenV510 To: LP Store Manager/529 ROBERT LEE LETICIA MORIN MARGARET PRUETT PATRICK SHEEHAN SCOTT TILLINGHAST . ZENATY, MICHAEL From: Pharmacisti075/575 From Cashier/539 From: Cashier/537 From: (new hire) From: SportS/Auto/Hdwre GM/512 From: Hardware Clerkl512 To: Pharmacy Mgr/175/475 To: Member Service Rep/539 To: Member Service Rep/537 To: Remodel Team Mbr Team IV To: Member Service Mgr/512 To: Sports/Hdwre Grp Mgr/512

11 SOLUTION TO STORE OPERA TIONS PUZZLE id you know that there are at least 434 words in "Store Operations"? Neither did we, until we took out our pens and went to work. And, \ lJ with the help of our friends, notably Alan Hovivian, jewelry manager at Woodland Hills, who contributed a whopping 360 words, we came up with the following list. Compare it to your own list-perhaps you found some that we didn't even find!

Letter "A" atone erasers naps (31) operators pears rains rise satin sites sorter spot stoop tarps ties trainer atones erases nares opera per raise risen satire sitter sorters spots stoops tars tin trainers aero atop eras narrate operetta poise raises rises satires sitters sorte stain stop tart tire trains air attire err narrates Letter "0' opine poor rap roar sat snip sorts stains stops taste tires trait airs errant neap option pores rape roars sea snipe span stair store taster to traits ante (31) near oar options port rapes roast sear snipes spar star stores tasters toast trap anterior (25) nears oars or ports raps roasts seas snoop spare stare strain tastes toasts traps an Letter "E" neat oasis orate pose rare rooster seat snoops spares stares strainer tatter toe treat ant Letter "I" nest aast oraters poses rat roosters seats snoot spars stars strainers tea toes treats ants ear nests oat oration posse rate roost see snore spat start strains tear ton tress arose earn in net oater orator prostrate rates root seen snores spats starts strait tears tone trip arris earnest inept nets on ore post ration roots seep snort spear stat straits teas tones trips arson earns interest nip one ores posts rations rope seeps snorts spears state street tease tons arteries ears interests nips ones orient potatoe ratio ropes seer snot spent states streets teases too (76) artist ease ion nite onset ornate potatoes ratios rose sees so spin station strip teat top stations artists eases ions nites onto osteo pot rats roses sent soap spine stripe tee tops steep art East irate nitro oops otter pots reap rot sin soaps spines stripes teen tore arts Easter ire no open otters prior reaps rots sins soar spinster steer strips teens torn steers as eat is noise opener priors rear rotten sip soars spins tees toron aspen eaten it noises openers (42) pro rears sips soe spire stein (139) ten tort aspire eats its noose openess pronto reason (49) sire soes spires step tense torte ass enter nooses opens Letter "P' pros reasons siren so ires spit steps Letter "T" tent tortes stern assent enters (11) nope operant proton reopen Letter "S" sirens son spits tents tortoise assert entrap nor operas pair protons reopens sires soon spoon stet tan tess torts asset entraps nose operate pairs rest sane sister soot spoons stint tans test tot (30) astir entreat Letter "N" noses operates par rests sans sisters sop spore stir tap tests tote astra entreats not operation part ripe sap sitar sore spores stirs taps lie totes at erase nap note operations parts Letter "R" ripen saps sit sores sport stone tar tier tots ate eraser nape notes operator pear rain riper sate site sort sports stones tarp tiers train

Three cheers for the following GEMCO slug- gers recently commended by members for their outstanding "FAN" style member service. GEIICO-- District 1 > EDITORIAL STAFF BETSY TURNEY, major appliances sales clerk at GEMCO 507 STAFF REPORTERS (Sacramento). This member commends her for her" .sales •• ~ Margaret Sharpe Administration ability," and her" depth of knowledge about the ~ various models available." ~ ••. Kathy Poore, 809 District 1 Gail Travers, 578 District 2 JEAN BOWERS, front desk clerk at Modesto was described as ..••.~O- " constantly smiling and happy. a definite asset to your store" Cathy Metheny, 546 District 3 U- Alice Massey, 536 District 4 District 4 lIa Hoover, 576 District 5 Gale Purves, 812 District 6 ALBERT BERMEJO, audio manager at Woodland Hills. A satisfied member" really appreciated such good service." Nancy Ryman, 571 District 7 STEVE HOZINKSY, store manager at North Hollywood "His courtesy and prompt attention re-established my confidence Nancy Petros-Black, 572 District 8 in doing busines with GEMCQ" exclaimed a member. Mary Hadley, 819 District 9 STAFF PHOTOGRAPHERS District 5 Michale Gulley (Tempe) MALINDA JONES, grocery clerk at GEMCD 541 (Fullerton) was described as "a very nice person (who) does an excellent Larry Padilla (Sacramento) job of bagging groceries." David Colliflower (LA/Orange County) MARGARET SENTES, domestics clerk at Bellflower. A true "FAN" nominated her for a "Kind and Thoughtful Award" for going out of her way to help. PUBLISHED BY THE GEMCO DIVISION OF LUCKY STORES District 7 Employees are invited to submit their story ideas to the reporter in their area or to: GLENDA HEWDRY, cashier at National City. Two happy members sent their compliments to Glenda for saving them money by being aware that an item was on sale. Debbie Howie NORMA CLANCEY, sporting goods clerk at Encinitas was described as a "true Gem," both "knowledgeable and helpful." GEMCO Personnel Buena Park