CIRCULATION: 10,460 FOR EMPLOYEES OF GEM CO DIVISION JULY, 1985 WHAT' IN NEW LOOK FOR ANA E? MERCHANDISING

$100 gift certific e, that's what, if n Tuesday, June 11, Stan Brenner ager, Home, which yours is the win ing entry in our " announced a new organizational includes Audio/ ME THE NEWSLET ER contest. sf ucture for Merchandising. Addressing Electronics (Joe the Executive Committee, Stan described Naughton, DMM); To participate, send y ur entry to NAME Domestics (John THE NEWSLETTER C NTEST, c/o Mar- the new organization, whose major fea- ture is the dividing of Merchandising into Schaefer, DMM); garet Sharpe, GEMCO, uena Park in the three rather than two main divisions. This Major Appliances intercompany mail (or t 6565 Knott Ave- will be accomplished by taking home- (Jim Stuber, Vice nue, Buena Park, CA 0620 in the U.S. President and Mail). Deadline for e tries is Friday, related buying categories out of Hardlines and creating a new buying division, D M M ) ; and JIM HYMAN August 2. All employee are eligible, and Home. Housewares (Gary Ojendyk, DMM). Jim you may submit more han one entry if begins his association with GEMCO fol- you like. Make sure tha you include your A second important part of the plan is to lowing a 23-year career with , a name and location. T contest will be consolidate warehouse and distribution 134-unit chain based in for all kinds of merchandise (apparel, jew- judged by the Editorial eview Board plus Braintree, Massachusetts. Jim's most elry, major appliances, audio/electronics Stan Brenner and Dave orman. The win- recent responsibilities with Bradlees and general merchandise), previously ning entry will be anno nced in the Sep- were as VP, GMM of Home and Men's tember issue. handled by their respective merchandis- and Boy's. CONTINUED, PAGE 6 ing organizations. Warehousing and Dis- What sort of name a we looking for? tribution will report to Wes Wright, Vice One that's fresh and fu , reflecting some President and Director, Administration. of the goals we have set or the newsletter. We want the paper to b informative and Hardlines will be headed up by Bob Roell, WELCOME entertaining, a way for EMCO employ- who joined the Company in June, as Vice Welcome to the first edition of the ees to learn about our c mpany, our busi- President, Gen- GEMCO newsletter. This will be the first eral Merchandise ness and each other. of a series of newsletters, to be pub- Manager. Before Can a name say all that lished bi-monthly, for now at least. Later starting with on, if practical, we may go to a monthly GEMCO, Bob was publication schedule. 16 years with Ven- Each issue of the newsletter will be ture Stores in St. planned by an editorial review board, Ann, Missouri, the composed of a cross-section of inter- last three years of ested employees (from different geo- BOB ROELL which he was Vp, graphical areas, in different types of DMM in their Hardlines Smallwares jobs, and at different levels). group. Venture, a discount department In the newsletter, we're planning to talk store, is owned by May Department about what's happening in the Company Stores Company and operates 60 stores and industry, discuss issues of interest in seven states. to you as an employee, as well as include personal items for you and your Reporting to Bob will be Dave Morehead, family. We will also acknowledge the Divisional Merchandise Manager (DMM), contributions of outstanding employees Patio, Sporting Goods, Toys and Trim; and help you get to know new names John Macaluso, Vice President and DMM, and faces. Stationery/Notions, HBA, Hardware and Just so we'll know we're on the right Automotive; and Dorothy Magette, Sr. track, though, we'd like to hear from you. Buyer, Cosmetics. Your suggestions will help make the C======-·II--.:----'-'--r--"Jim Hyman, also new to GEMCO, is Vice newsletter all that it can be. President and General Merchandise Man- A letter from

DAVE DORMAN. • •

Summer is hei and Gemco is looking ear Fellow Employees, forward to a r cord-setting sales sea- son. Unfortu ately, with increased This first issue of the Gemco Employee Newsletter represents a very important sales, there is so increased shoplifting step for our Company. The newsletter itself is one part of an overall Gemco employee activity. communication program. I'm excited about the opportunity to improve our Company Here are som tips to prevent shop- through improved two-way communication. lifting: Gemco, over the last twenty-five years, has emphasized a basic value of concern Give frie~y, alert service to your cus- for people ... both employees and customers. This basic value, over the years, has 1• tomers a all times; greet each cus- been communicated informally through our actions as well as our conversations. We tomer pr ptly. have all heard at one time or another the phrase that Gemco is a "people company." Even if b sy, let other customers know As we have grown, though, there comes a time to develop more formal programs 2• that you see them. Nod and state which are designed to achieve the same result as the informal emphasis. This pleasan Iy, "I'll be with you in a Newsletter and the related employee communication programs represent just such a moment.' step. But the basic philosophy remains unchanged. If you SUject a customer IS tempted to 3• pilfer, wa h him openly, carefully and In Gemco, we've experienced major changes during the last few years. Change in courteo sly Being watched dis- an organization as large as ours is never easy. We are very fortunate, though, to have courage most shoplifters. a core group of dedicated, talented employees at many levels in Gemco. 4. Keep aisl s clear. We are now in the process of rebuilding and repositioning this Company for the future. The rebuilding is done on a very strong base and is specifically designed to Keep dis~lays as complete as possi- emphasize the key strengths of Gemco. Key Gemco strengths include selection, S• ble; thi~1 makes it easier to spot price, one-stop shopping, and friendly service in a membership store. Our goal is to shoplifte rebuild and strengthen these key differentiating characteristics of Gemco. Whenev r possible, check dressing 6• rooms of n for clothing left by custom- In order to reach this goal, we need people throughout the Company to be ers. Che k customers as they enter informed and involved. We have the responsibility to put together sensible programs and leav dressing rooms. designed to deliver to our members exactly what we promise. It all begins with the Keep em ty hangers off display racks merchandising plan, and it ends with the completion of the sales at the register. At 7• atalltim each step along the way, whether we are buyers, merchandisers, warehousemen, Check rchandise as you ring up stock crew people, sales clerks or managers, we each playa part in serving the the orde . Look for ticket switching Gemco member. If we simply put ourselves in that member's shoes and think of how 8• and con ealment of additional we like to be treated in a store, we will be well on our way toward providing that mercha ise inside merchandise very simple but elusive thing called "quality member service." the cust mer is buying. Know your mercha ise. Ours is a people business. It makes good business sense to pay attention to our Never tu your back on a customer if own employees and to our members. In addition to this newsletter, we will begin in the 9• you can void it. near future an employee suggestion program and a program of employee small- Be espe ially alert during opening, group meetings. Both of these programs are designed to encourage listening 10 • closing a d lunch hours. throughout our organization. Neither, though, is a substitute for honest and direct Be alert t suspicious movements: communication between our co-workers, subordinates and supervisors on a daily 11• • The sh plifter never keeps his eyes basis. on the merchandise he is about to steal. We face significant challenges in today's competitive retail world. Gemco, • Watch he hands-the hands do the though, is building for the future on a strong base. I hope you find this first stealin . edition of your employee newsletter to be informative and productive. We • One 0 the simplest methods of welcome your suggestions and comments. shoplif ng is for a person to tryon merch ndise and then walk away from th department wearing it. Sincerely, Beware the loosely wrapped parcels 12• which co Id have false openings. 13. Never Ie ve your section unattended. ;il;~-- "": If you Wifness a shoplifting, keep the 14• suspect i sight and notify a Loss Pre- T vention Agent or Manager im- mediatel . 'f

2 VERYBODY'S A look at what is happening in the business world and how it affects

US/NESS GEMCO and GEMCO employees.

GEMCORA KS #2 AMONG DISCOUNT WHAT A TYPICAL RETAILER IN SALES PER STORE DOLLAR PAYSFOR

According to an indust IY periodical, DISCOUNT MERCHANDISER, GEMCO ranked #2 ur members spend a lot of money in among the top 10 U.S. di •count retailers in 1984 for sales per store, and #5 in total sales. our stores and our job is to see that they get value-a good product at the right price. With your continued fi lie efforts GEMCO will remain one of America's finest discount department stores. But just what does it cost us to get that product from our suppliers, onto the shelf and into the member's shopping cart? SALES PER STORE * TOTAL SALES * This shows where an average GEMCO sales dollar goes and demonstrates the As of 1984 ... # Store Sales Per Store As of 1984 ... # Stores TOTAL SALES enormous effect that controlling costs can have on Company profits. 1. Price Club 20 $61,250,000 1. K-Mart 2,173 $20,822,522,000

2. GEMCO 77 $30,207,792 2. WalMart 745 $ 6,218,000,000 AN AVERAGE GEMCO SALES DOLLAR· 3. Target 215 $16,279,069 3. Target 215 $ 3,500,000,000

4. Fred Meyer 99 $13,878,787 4. Zayre 275 $ 2,614,000,000 (73t) COST OF MERCHANDISE ------::::

(14CP) AYROLL------:: 5. Calder 103 $12,621,359 5. GEMCO 77 $ 2,326,000,000 (3e) WAREHOUSE & DISTRIBUTION 6. Bradlees 132 $10,636,363 6. TG&Y 743 $ 2,037,000,000 (2';'C) STORE OPERATING EXPENses 7. K-Mart 2,173 $ 9,582,384 7. Bradlees 132 $ 1,404,000,000 (21hC) ADMINISTRATIVE EXPENSES

8. Zayre 275 $ 9,505,454 8. Fred Meyer 99 $ 1,374,000,000 (2eAO) VERTISING----'t--' 9. Walmart 745 $ 8,456,375 9. Calder 103 $ 1,300,000,000 (2C) RENT. UTILITIES & DEPRECIATION ('he)TAXES------~--' 10. TG&Y 743 $ 2,741,588 10. Price Club 20 $ 1,225,000,000 :V2C) PROFIT------'''-<::

elevision, open a topped the 5 million mark in total mem- by GEMCO employees paper or walk into GEMCO these bership and sold about $1.7 billion worth • Personalized mailings days without seeing GEMCO's new of everyday low-priced merchandise to • Free check cashing image. A new, contemp ary store look, a our members. In 1984, our membership • Free layaways with liberal terms dazzling new logo, adv tising with more reached a whopping 10 million plus and impact, a new and ima /native approach our sales were $2.3 billion. • Free Extended Protection Plan on major appliances to merchandising. So, I how will mem- Says Hitzelberger, "Membership has bership fare in this all- ew Company of always served us well. Unfortunately, • Extended credit terms and, in some ours? Does it have a fut re? we've let the program go to sleep over the cases, instant credit "Yes!" says Paul Hitzelb] rger, Vice Presi- past few years. An important part of my • Choice at available colors tor major dent, Marketing, "In fac I now more than strategy is to wake it up again, get every- appliances at no charge ever." body-employees and members- • Gitt certificates excited about membership and make sure When GEMCO opene I in 1959, a single • No-hassle return policy that membership really does have value." 50,000 square foot sto ~ in Anaheim, it • Rainchecks tor out-at-stock adver- was as a membership sire. Membership His plan is three-fold. First, to firmly link tised items was still a highly experim I ntal approach to the name, GEMCO, to the word, Mem- • Cart-to-car service retailing and the indus ry watched with bership (or as Stan Brenner puts it, "We're Third, and most important, to make great interest as co jpanies tried it, a membership store and we're going to faltered, and failed. start bragging about it!"). sure that we actually render these bene- fits so that the member's shopping experi- GEMCO, of course, di, well and grew Second, to point out the specific bene- ence will be a unique and pleasant one. steadily, opening memb I rship store after fits of membership to the public, such as: But what about Phoenix? We dropped membership store. I • Everyday low pricing membership in our four Phoenix stores By 1980, we were t e largest mem- • One stop shopping bership store in the wo Id. That year we • High quality and personalized service CONTINUED, PAGE 6

3 GEMCO'S NEW PRESIDENT SPEAKS OUT AN INTERVIEW WITH STAN BENNER

In March of this ~ear, Stan Brenner joined wants. To do this, we'll have to do some doing what the ~ustomer wants in a retail Gemco as its President, bringing with him restructuring of our organization to sup- store. We have C1Jtremendousopportunity more than three decades of retailing experi- port the new merchandising thrust. We'll with our customer base. We feel that the ence. graduate of Ohio University, Mr. be moving toward a more traditional orga- membership concept is a viable one and Brenner began his retailing career in the nization-along the discount department we intend to make it even more worth- executive training program of Ohrbach's in store lines. while for our ustomers than it is at New York' ity. Two years later, he joined May present. Department Stores where he spent 14 years How will this be accomplished? in various buying and general management There will be limited number of Changes in What kind of impact will the new capacities. In 1963, he joined Wisconsin- buying practices and job responsibilities. prototype stres have on other based H.C. Prange Co., eventually serving We will create two general hard lines as Executive Vice Prestdent-of Merchandis- stores in the ~eain? areas-one to concentrate on the lifestyle ing and Sales Promotion, and President of I believe we havel to have the right stage to Prangeway Discount Stores. We recently type of merchandise. such as domestics, put the right products on. But it doesn't talked with Mr. B~enner about his thoughts housewares and electronics, and one to mean tearing d~wn and rebuilding. We on Gemco-its pe'~ple,imd its direction in concentrate on the commodity goods have some sevehty other stores that are the retail marketplac~l such as HBA, hardware and sporting doing well. We j~st want to put them into 'l goods. We'll also concentrate on having the mold of the 1!990'sand get them out of stores that visually present our customers the '60s. So we'lil adapt some of the mer- with an image that projects new merchan- chandising ideas we use in our prototype From the President's chair, how do dising directions and philosophy. Begin- stores. Two to foyr stores will be retrofitted you view Gemco at present? ning in August, we'll be launching a brand projecting our ~ew merchandising and Gemco is well and healthy. I like to think of new and exciting sales promotion image this fall. We have the full backing of our company as having had a slight cold approach-the way we look, our pricing, Lucky to intenSif;1 this renovating in 1986. for the last couple of years and we've had as well as our store content. We're also to cure that cold. Gemco is vigorous and going to start managing our business How will all of is affect the indiv!d- will remain so. Some of the things that through planning. That means our buyers ual Gemco em loyee? have happened over the past few years and operations people will have better I'm a great believfr in the adage that noth- tools on which to base their decisions. may have been a result of our not keeping ing succeeds liky success. And that can Both Lucky M IS and Gemco MIS are work- our eye on the ball. That is changing work for all of u~ But what we intend to rapidly. My primary responsibility as Presi- ing feverishly to put together a crash pro- accomplish will equire a team effort. I dent will be to help prepare us for the end gram to get us quickly into more of a retail don't believe in he one-man show and of this decade and the beginning of the accounting mode, too. never will. Inste d, I sincerely feel that 1990's. Naturally that will require some How will Gemco customers react to everyone in the c mpany, from the newest changes. these changes? checker to the 10 gest-time employee, will derive more plea' ure from his or her work, What are some of these changes? Very positively we think. As an example, in have more sense of accomplishment, and First, we're beginning a move toward a the first two months of operation in the go home each ay feeling a little better more marketing oriented business-more new prototype stores, performance is run- than they did th day before. That's what merchandise-driven. We'll also be putting ning about ten percent ahead of expecta- I'd like for myself nd everyone who works more emphasis on consumer needs and tions. I think it's because we've started with me.

"Gemco is well and healthy. I like to think of our company as having had a cold fo I the last couple of I years ... we're moving toward a more marketing oriented business, more merch ndise driven and putting more emphasis on consumer needs and wants." l

4 KEEPING UP WITH TODAY'S CONSUMERS WRIGHT APPOINTED VICE J GEMCp'S NEW LOGO PRESIDENT, ADMINISTRATION By Paul Hitzelbeter, V.P., Marketing

,..y now, most of ypu have noticed GEMCO's bold, new logo. Our print and ", television advertising, as well as our new prototype stores include the new design. I Gemco is changing, improving, keeping pace with our customers' changing tastes; and this new logo signals that flexibility with a bright splash of color on a solid, more contemporary base. The gold "V" symbolizes our gold value program, with emphasis on our asseltion that Gemco and value are one and the same. In our advertising, the new Gemco logo will include a tag line "The Members' n June 10, Wesley Wright was hired and ISupermarket." In Phoenix the tag line will read; "The Depart- .·..·. ment Store and ... all in one." Our tag line reinforces our competitive AI'm~~st:~~~n,P;:;I~C~~~ ~~~n D6~~~~~: advantage and our one-stop shopping environment. who recently has been appointed to VP The new Gemco loqo is the forerunner of many new exciting programs that Gemco Controller, Southern Food Division. will be executing in th~ coming months. Gemco members can look forward to new Wes comes to us from Deloitte, Haskins advertising, new store layouts, and exciting new merchandise. The new Gemco logo and Sells ( office) where, as a will help to remind dur members that Gemco is their department store and retail consulting manager for The Big supermarket. Eight accounting firm, he consulted in the areas of long-range planning, warehous- ing and distribution, merchandise report- ing systems, financial planning and controls, and internal controls. Prior to Deloitte, Haskins and Sells, Wes was with such majors as Carter Hawley Hale, where he was Executive Vice Presi- GEMCO dent of Contempo Casuals Division; and 1960 Foxmoor Division of Melville Corporation. His pre-GEMCO experience encom- passes about 18 years in retail in both consulting and top financial and opera- tions assignments. Wes' distribution expertise will be put to good use with GEMCO; over the next few months, the warehouse and distribution functions for the Company will be taken out of thei r respective merchandising areas and consolidated under Wes' direc- 1965 tion. He will also assume responsibility for the Central Services areas. Born and raised in Mississippi, Wes grad- uated from the University of Southern Mis- sissippi with a B.S. degree in Accounting. Active in education and other civic affairs, GEMCO Wes and his wife, Patricia, have two chil- 1978 dren, ages 10 and 12. The challenges facing Wes in his new job are hefty ones for he takes the leadership of Accounting, Data Processing (and, now, Warehousing and Distribution and Central Services) during a time of exciting change and growth. "I see tremendous opportunity here," he states with confi- dence, "for both the Company and for all the individuals who help manage this 1985 growth. These are exciting times relating to the advancement of GEMCO. I look forward to working with a very capable team of associates."

5 MERCHANDISING (CONTINUED FROM PAGE 1)

Mark Lisnow will continue to direct Soft- HOME lines as Vice President, General Mer- chandise Man- ager of that area. SAFETY Softlines includes all apparel areas TIPS FROM YOUR LOSS PRE- as well as Fine VENTION DEPARTMENT ON Jewelry, newly TELEPHONE SAFETY ... added under' the new organization plan. Since joining MARK LlSNOW GEMCO in May, e are so used to the telephone • If you are a single woman, do not list 1984, Mark's aim has been for greater and so accustomed to answering your name in the phone book as Mary emphasis on consistency of merchandise questions that it's time we stopped and Jones. It would be better to put M.B. and on presentation. A department store thought about the safe use of the tele- Jones. Tothe criminal, it is an indication veteran (most recently with Macy's and phone. Most calls are legitimate but be that you are a woman living alone. before that, Ohrbach's), Mark has put into aware that the telephone is an excel- • If you have children, shut-ins, or elderly practice many effective department store lent anonymous way to gather infor- persons at home, be sure to warn them merchandising principles, such as better planning and expertise in the selection of mation about you. Here are telephone about giving information on the tele- merchandise, colors, presentation, quality safety tips: phone. They should be urged to give only one reply when you are not home, levels, labeling and hang tags. ''All the • When you answer the phone, don't give and that is, "Mary is busy right now. things we learned at the department store your name and number. The person Leave your number and she will call level are now starting to be translated calling may have gotten you by mis- you back." As a reminder, print the down to mass merchandising business," take. Instead, take charge of the con- proper message on a piece of paper says Mark. versation and ask "Who do you wish to and display it near the phone. Reporting to Mark in the new speak to?" or "What number are you merchandisinq structure will be Jeff calling?" • In case of obscene, threatening or harassing phone calls, the first and Koblick, DMM Ladies Heady-to-Wear and Sportswear: Earl Katz, DMM • Beware of the question on the tele- best thing to do is hang up. Do not Ladies Intimate Apparel and phone. The disguise of selling some- engage in any conversation. If you Accessories; Marty Fogelman, DMM thing often allows the criminal to find have a silent caller on the telephone Men's and Boys'; and Bernie out a great deal (A leading question who doesn't respond to your "hello", Schonherz, DMM, Childern's. Bob may be, "When can I speak to you and hang up. If you are being annoyed on Nilsen has been appointed to the new your husband?") the phone, report it. The telephone responsibilities of Director, • Women: Do not volunteer the informa- company will help you if you are receiv- Competitive Analysis. tion that your husband works days, or ing obscene, harassing or annoying The three merchandising divisions, phone calls. It is against both state and is away or that you are single. Don't Hardlines, Home and Softlines, will disclose any information about your federal laws to make these phone calls. report directly to Stan Brenner, lifestyle, habits or work hours. The penalties for breaking these laws President. are imprisonment and/or fine. • Don't be chatty. You may give away So what is the result of these changes? A information without even thinking • PROTECT YOUR PRIVACY DON'T cleaner, more streamlined organization, about it. If the service is one you are GIVE INFORMATION TO STRANG- designed along lines more traditional in interested in, you can always call them. ERS ON THE TELEPHONE. the retail industry, with a more logical pair- ing of buying areas. The plan, Stan explains, is very much the culmination of WHAT DOES IT TAKE TO MEMBERSHIP strategic thinking done by management in (CONTINUED FROM PAGE 3) the stores and in merchandising during BE A GEMCO FAN? the last few years. last fall. "Phoenix is a very defined mar- ket," explains Hitzelberger, "and not repre- The new structure, coupled with a clearly sentative of the rest of the chain. We defined, updated marketing philosophy decided to try non-membership for that (see "Interview with Stan Brenner" on market only." Page 4) will greatly improve GEMCO's In practical terms, what will we as ability to plan and execute merchandising GEMCO employees be seeing in the next strategies and to react quickly and imagi- few months? The reintroduction of a natively to customer needs. mailer, somewhat similar to the Courier, which hasn't been published for almost a year now. The new mailer, more contem- porary and procuct-centered, has been A fond Gemco salute to our resigning redesigned to be unique to GEMCO and C.E.O. Don Ritchey. Our best wishes to have high impact. Also, member service you Don, in your new role. Special con- will receive much more attention than in gratulations to both John Lillie and the past. Larry Del Santo in their new responsibilities. Yes, GEMCO is committed to remain a membership department store. It's what makes us unique. It's what makes us better.

6 ~l PEOPLE ON THE MOVE r-l, Following is a listing of promotions and new hires that occurred in April and May,

Best wishes to the following employees in their new assignments with GEMCO:

AGUILAR, DENISE CRAIG, GLORIA HEDMAN, DAVID MAMMEN, STEVE RIZZI, FRANK From: (new hire) From: Cashier/819 From: Children's Clerk/80? From: Hard Goods Mgr/505 From: Patio Clerk/800 To: Acct Secy To: Asst. Cust Svce Coord/819 To: Men's DH/807 To: Asst Store Supvr/502 To: Patio DH/526

ANTEKEIER, ANDREW CUMMINGS, TERRY HENSON, MARY McCANN, CYNTHIA ROELL, ROBERT From: Sports DH/527 From: (new hire) From: Children's Clerk/572 From: Prod Artist From: (new hire) To: Sports DH (key)/527 To: LP Civil Restitution Coord To: Ladies' DH/572 To: Lead Prod Artist To: VP., G.M.M. -Hardlines

BEEMAN, DAVID DAVIS, RANDY HON~NGER,ANTHONY McCARTHY, MARTIN ROSTRATA, PATRICIA From: Sports Clerk/519 From: (new hire) From: Clerk/537 From: (new hire) From: Drug Clerk/817 To: Sports DH/803 To: Programmer Analyst To: HBA DH/537 To: Labor Relations Intern To: Drug DH/81?

BERMEJO, ALBERT DAVIS, VICKI HOZINSKY, STEVE McKINNEY, RELLA RUFFIN, SANDRA From: Audio Clerk/543 From: (new hire) From: Patio DH/519 From: (new hire) From: Ladies' DH/522 To: Audio Mgr/519 To: Advertising Prod Artist To: Hard Goods Mgr/803 To: Advertising Camera Assist To: Ladies' DH (key)/522

BITTNER, CHRISTINE DURAN, CARMEN JAY, ALLEN MEIS, JOANNE SAMILEY, JORGE From: (new hire) From: Import Coord From: Hard Goods Mgr/532 From: Domestics DH/574 From: (new hire) To: Buyer-Ladies' Large Sizes To: Sr. Import Coord-Apparel To: Whse Mgr/810 To: Domestics DH (key)/574 To: Import Acet Sup'vr

BLACKBURN, SANDRA EDWARDS, SHARON JENSEN,RON MELLVILLE, TAMMI SANTOSO, UTOMO From: Hdwre Clerk/502 From: Credit Clerk/814 From: (new hire) From: Domestics DH/527 From: (new hire) To: Hdwre DH/502 To: Credit ate Mgr/814 To: Hardlines Assist Buyer To: SoftGoods Mgr/572 To: Acct PC Operator

BLANCATO, JACKIE FARBER, ELVIRA JOHNSON, HUGH MERCER,DEANNE SCHMITT, VIKKI From: Credit Ofc Clerk/804 From: Housewares DH/575 From: Hard Goods Mgr/506 From: Audio Clerk/818 From: Credit Clerk/509 To: Asst Buyer-Men's To: Housewares DH (key)/575 To: Asst Store Supvr/536 To: Audio Mgr/534 To: Credit Ofc Mgr/524

BOSSIER, MARCEL FARBER, ROBERT KELNHOFER, RICHARD MORALES, LINDA STEPHEN, KELLY From: Housewares Clerk/536 From: Toy Clerk/53? From: Jewelry Clerk/547 From: Hard Goods (key)/510 From: (new hire) To: Housewares DH/536 To: Hdwre DH/522 To: Jewelry Mgr/550 To: Hard Goods Mgr/510 To: Programmer Analyst

BOYD, KATHRYN FIALHO, HEllO KEYS, DEBORAH MORRISON, JAMES STUYVENBERG,DAWN From: Patio DH (key)/800 From: Asst Store Supvr/532 From: Children's Clerk/512 From: Pharmacist/526 From: (new hire) To: Hard Goods Mgr/519 To: Store Supvr/503 To: Children's DH/810 To: Pharmacy Mgr/505 To: Advertising Traffic Coord

BOYD, KEVIN FISTER, GERALD KIRLlK, PATTIE NICHOLS, SHELLY TAYLOR, DELL From: Res. Stock/504 From: Internal Audit Supvr From: (new hire) From: Ladies' DH/572 From: Clerk/533 To: Children's DH/504 To: Mgr, Financial Planning To: Training Specialist To: Ladies' DH (key)/529 To: Patio DH/543 BOYER, BEAU FLASHNER,DEBORA KISER, KATHY NILSEN, ROBERT TROll, STEVE From: (new hire) From: Children's Clerk/519 From: Hardware Clerk/535 From: Merchandiser, Men's From: Patio Group Mgr/819 To: LP Dist Mgr To: Children's DH/519 To: Men's DH (temp)/535 To: Director, Competitive Analysis To: HardGoods Mgr/541

BOYER, DENISE FOGELMAN, MARTY KNIERIEM, MARY ANN NIPPER, SCOTT TSUTSUI, ROSALIND From: (new hire~ From: Mdse Mgr-Young Men's, Boys' From: Housewares DH/519 From: Audio Clerk/575 From: Men's DH (key)/522 To: Advertising rod Artist To: Mdse Mgr - Men's, Young Men's, To: Credit ate Clerk/519 To: Audio Mgr/515 To: SoftGoods Mgr/519 Boys' BRAWNER, GREGORY KNIGHT, BRAD NORED, KATHLEEN WALTERS, RALPH From: Sports Clerk/533 FREY, MILDRED From: Jewelry Clerk/514 From: Stationery Clerk/573 From: Housewares DH (key)/578 To: Sports DH/519 From: (new hire) To: Jewelry Mgr/533 To: Men's DH/573 To: Whse Mgr/578 To: Advertising Co-op Coord CAMACHO, JOHN KNUPp, DON NORRIS, KEVIN WILLIAMS, LOUIS From: Soft Goods Mgr (temp)/538 GARCIA, THERESE From: Drug DH (key)/503 From: Pharmacistl519 From: Jewelry Clerk/533 To: SoftGoods Mgr (perm)/538 From: (new hire) To: Hard Goods Mgr/503 To: Pharmacy Mgr/543 To: Jewelry Mgr/801 To: Advertising Prod Artist CAMPBELL, ROBERT LaBOUNTA, JACQUELINE PARKER, MARK WINKELMAN, THOMAS From: Housewares DH/519 GELPHMAN, TONY From: Credit Ofc Clerk/572 From: Whse Mgr/810 From: (new hire) To: Patio DH (key)/519 From: Housewares Clerk/504 To: Credit Ofc Mgr/506 To: Sports DH/510 To: Programmer Analyst To: Hdwre DH/504 CAMPBELL, SYDNEY LaFLEUR, RUTH PENCILLE, DAVID WRIGHT, WES From: Drug Clerk/574 GERBER, VIRGINIA From: (new hire) From: Drug DH (key)/512 From: (new hire) To: Drug DH/574 From: Major Appl Mgr (temp)/514 To: Pharmacy/LP Secy To: Hard Goods Mgr/532 To: v.P, Director, Admin. To: Major Appl Mgr (perm)/514 CARDENAS, MARCIA LaPOINT, DAN PEREZ, VICKIE YOCHEM, JOEL From: Acct Secy GOULD, FREDERICK From: Housewares DH/519 From: (new hire) From: Sports Clerk/515 To: Secy to V.P.lControlier From: Pharmacistl519 To: Housewares DH (key)/519 To: Systems Programmer To: Patio DH/515 To: Pharmacist Mgr/883 CHARD, DWAYNE LEAL,RALPH PICKENS, EDITH YOKOTA, CHRIS From: Sports Clerk/530 GOULD, LEIGHTON From: Men's Clerk/527 From: Acct Clerk From: Men's Clerk/522 To: Sports DH/530 From: Children's Clerk/807 To: Men's DH/527 To: Admin Records Coord To: Men's DH/522 To: Hdwre DH/807 CIMINESI, RON LEFEVER, LORNA REED, JUNE ZACHRY, JOHN From: Sports DH/526 GRIFFIN, TERRY From: (new hire) From: Prod Artist From: (new hire) To: Sports DH (key)/526 From: Patio Clerk/50S To: Advertising Traffic Coord To: Lead Prod Artist To: Advertising Prod Artist To: Patio DH/505 , CITARELLI, RALPH LEMONS, RANDY REIDINGER, TED ZORBAS, MICHAEL From: Hdwre DH/535 HANSON-CARILLO, From: Hardware Clerk/525 From: LP Agent From: Sports Clerk/511 To: Hardware DH/525 To: LP Central Station Supvr To: Sports DH/511 0: Drug DH (key)/538 CHRISTINA From: Layout Artist CLINE, ROXANNE To: Art Director LEMOS, PATSY RILEY, PATRICK From: Ladies' DH/530 From: Variety Cashier/510 From: Drug DH/530 To: Ladies' DH (key)/530 HARRIS, LA JUANA To: Housewares DH (key)/510 To: Hard Goods Mgr/573 From: Children's Clerk/574 COOK, SHERRIE To: Children's DH/574 LEYBA, LAURA RIVERA, RUDY From: Hdwre Clerk/535 From: Children's Clerk/536 From: Hdwre Clerk/575 To: Hdwre DH/535 To: Children's DH/536 To: Hdwre DH/575

7 SERVICE AWARDS

Congratulations to the following ... 10 YEARS (cont.) 5 YEARS (cont.) 5 YEARS (cont.) Beebe, Jeanette 531 Connolly, Jeanne M. 548 Schipper, David M. 514 Begley, Carol Operations Covington, Michael B. 502 Sciascia, Patricia A. 108 IU Broussard, Diane 510 Curbelo, Jane 802 Sicurella, Jim Jewelry [I Burns, Deborah E. 574 Devany, Derek J. 576 Smith, Bradly 537 Cartwright, Clinton 504 Diemel, Mary D. 505 Smoker, Tom J. 514 ~ Davis, Irene R. 543 Dominguez, Lou Anna 534 Spits naugle, Tiffany C. 577 Donnelly, Patrick W Lucky 710 Earl, Barry J. 577 Strahl, William DP Dorman, Dave Exec. VP. Ferguson, Ruth C. 574 Sturzenegger, Donald R. 549 20 YEARS Eseltine, Cheryl Sue 521 Ferren, Joc Elyn 805 Sullivan, Kevin 574 Friedowitz, Robert L. 511 Fields, Christopher 550 Sullivan, Lisa A. 530 Fung, Karen L. '510 Fontana, Brian A. 543 Swift, Debbie 521 Goldbloom, Joyce L. 807 Fraire, Rose D. 534 Tejeda, Narlamae B. 529 Epps, Calvin 516 Grafius, Cynthia L. 518 Fuchs, Edward G. 573 Tomao, Brian E. 542 Godina, Socorro 507 Guerra, Jeanne 520 Garvey, Pamela M. 516 Towles, Leroy 529 Lopez, Robertro 525 Heckenlaible, Renee 541 Gearey, Denise L. 817 Vail, Michael J. 802 Jacobsen, Donald E. 538 Gill, Charles E. 801 Van Den Bosch, Andrea 505 Jones, Jim Electronics Gonzales, Mario A. 577 Van Meter, Ronald B. 519 Keyes, Linda L. 545 Gonzalez, William 528 Vane, William 578 Kremen, Joseph Good, Virginia E. --- -~ 514 523 Veal, Denise M. 572 Marlin, Rick 532 Grasso, Margie Apparel Dist. Ctr. Vargas, Ana L. 579 ~ Martinez, Carolyn 572 Greene, Thomas R. 576 Walker, Doug Mdse Pln~ McFall, John Jewelry Grogan, Linda A. 573 Waltman, David 540 Melendez, George L. 506 Harris, James A. 802 Ward, James P. 804 15 YEARS Moreno, Julie E. 518 Harris, Sheryl 501 Ware, Kathryn A. Major Appl, Natale, Allessandro 516 Hayashi, Shelley 575 Wilgus, Michael L. 517 Nelson, Vincent E. 524 Hernandez, Joe 536 Williams, Moses 921 Niduaza, Rosita A. 524 Herron, Barbara J. 509 Wong, Charles 810 Andrews, Vera 523 Peters, Sharon L. 532 Highsmith, Robert V 524 Yokota, Chris 522 Bollinger, Larry D. 808 Piazza, Anthony 532 Hinkle, Kenneth A. 545 Borgert, Barbara A. 507 Price, Harry L. 577 Hodges, James A. 579 Coleman, Ronald S. 521 Rice, Monica L. 523 Hogan, Susan E. 538 Emery, Kathleen Coso Speclst. Stopper, Dawn M. 502 Holguin, Isias F. 504 Guyton, Robert 540 Sutter, Kathie 809 Hopper, Melanie L. 530 Haimowitz, Irving 516 Tinkey, Richard L. 816 Juarez, Mark A. 505 Harris, Joanne Accounting Tinkshell, Marilyn E. Accounting Kerrigan, George 521 Hoyt, Nancy C. 517 Torres, Richard J. Apparel Dist. Ctr. Kitahara, Mary S. 502 Kautz, David H. 545 Van Der Aa, Margaret G. 812 Lampe, Lyla M. 800 EDITORIAL STAFF Kingston, Karen 529 Woerth, Dorothy L. 526 Larson, Victor A. 517 Kitterman, Donald O. 106 Long, Mike J. 573 EDITORS: Muller, Irene F. 523 Lopez, Celeste M. 802 Pat Flynn Naughton, Joe Jewelry Macaluso, Josette 545 Greg McVey Pence, Lettie L. 523 MacGilfrey, Edward 536 EDITORIAL ASSISTANT: Roach, Marilyn V 502 Martinez, Lynda 538 Margaret Sharpe Savage, June M. 546 McGetrick, Matthew 501 Smith, Eileen M. McGuire, James 520 518 EDITORIAL REVIEW BOARD: Smith, Norman L. 502 Medeiros, Lezlee A. 544 Roger Campbell Tam, Thomas 504 5 YEARS Minott, Laurie A. 541 Sue Mullins Terzian, Greg 532 Mori, Nelle A. 522 Ron Runolfson Woods, Ridley 539 Mulvey, Michael P. 803 Glenn Turley Yee, Gerald K. 921 Nagaya, Maraiya 526 Aguilar, Connie Hardlines Naranjo, Erma E. 536 PUBLISHED BY THE Anderson, Kathryn 525 Negard, Bradley K. 525 GEMCO DIVISION Banuelos, Irma 574 Norby, Laurie 574 Barabas, Bryn, M. 514 OF . Nott, Teresa E. 549 Barker, Sharon K. '503 O'Brien, Julie 541 Employees are invited to Bloom, Nancy L. 550 Padilla, Norma 577 submit story ideas and Bowers, Daria 528 Papanek, Jan M. 536 Boy, Karen S. Jewelry photography for publication to: Penalber, Virginia 539 Brownbridge, Brian C. 800 10 YEARS Perez, Vicki L. 541 Burke, Walter J. 509 Margaret Sharpe Pierwola, Daun M. 818 Carroll, Theresa M. 524 Editorial Assistant Ponce, Elaine 575 Caspary, Mary K. 547 Buena Park Porter, Tammra L. 525 Albers, Patricia J. 577 Cataline, Mike J. 527 Ray, Mary L. 522 Albert, Lucien 508 Caufield, Scott D. 808 Reeder, Mark R. 517 Allen, Karen 812 Ciminesi, Ronald C. 526 Reid, Robin A. 522 Apell, Debra S. 803 Clifford, Terry R. 579 Sato, Allison R. 575 Beaver, Rex A. 526 Cockrellsmith, Janet E. 501 © 1985, GEMCO STORES 1 8