fwm fairway market 2015 icr xchange fairway presentation (display)vfinal

8/17/2019 FWM Fairway Market 2015 ICR XChange Fairway Presentation (Display)VFinal

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Forward Looking Statements/ Safe Harbor

Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-lookingstatements involve known and unknown risks and uncertainties and other factors that may cause Fairway'sactual results in current or future periods to differ materially from forecasted results. Food retail is a large andhighly competitive industry, and Fairway’s business involves many risks and uncertainties, including, but notlimited to: our ability to open new stores on a timely basis or at all; our ability to achieve sustained sales and profitable operating margins at new stores; the availability of financing to pursue our new store openings onsatisfactory terms or at all; our ability to compete effectively with other retailers; our ability to maintain pricecompetitiveness; our ability to achieve the anticipated benefits of our centralized production facility; the geographic concentration of our stores; our ability to maintain or improve our operating margins; our history ofnet losses; ordering errors or product supply disruptions in the delivery of perishable products; restrictions onour use of the Fairway name other than on the East Coast and in California and certain parts of Michigan andOhio; our ability to retain and attract senior management, key employees and qualified store-level employees;rising costs of providing employee benefits, including increased healthcare costs and pension contributions dueto unfunded pension liabilities; our ability to satisfy our ongoing capital needs and unanticipated cashrequirements; and other risk factors detailed in our filings with the Securities and Exchange Commission(“SEC”), and available at the SEC's website at www.sec.gov . You are urged to consider these factors carefully inevaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements made herein speak only as of the date of this presentation and the company undertakes noobligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

Actual results could differ materially from anticipated results. More detailed information about these and other factors is set forth on Fairway’s AnnualReport on Form 10-K for the fiscal year ended March 30, 2014 and in subsequent filings with the Securities and Exchange Commission.

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http://www.sec.gov/http://www.sec.gov/


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Founded : 1933

Headquarters : Harlem, New York City

Number of Stores : With 15 sites today, Fairway is theleading Grocery Store concept in the New York Metro Area

CEO: Jack Murphy appointed in September 2014; bringswith him over 30 years of proven experience and industryleadership

CMO: Dorothy Carlow joined FWM in November 2014, trackrecord of developing innovative merchandising processes

COO: Kevin McDonnell joined FWM in 2007; Kevin is aseasoned retail operator with a history of achievingmeasurable results

CFO: Ed Arditte has served as CFO since December 2012

Category AllocationGeneral

LTM Sales by Department Key Metrics

Key Facts Slides

Total gross sqft : 895K

Total selling sqft : 526K

LTM Sales : $798.2mm

LTM Gross margin : 31.5%

LTM Adjusted EBITDA : $43.3mm

LTM Adjusted EBITDA margin : 5.4%

Metrics based on LTM period ended September 28, 2014

19%

14%

11%

10%9%

7%

30%

ProduceOrganics

Grocery

Deli

Meat

Specialty

Other

64%

29%

7% Perishable

Non-Perishale

Specialty

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Strong brand equity

Industry leading sales metrics

Passionate and experienced team members

Ability to optimize current footprint

Unit growth opportunity in immediate market

Assessment of the Business

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Brand Positioning Statement

Big, bold , and a little bit rebellious , Fairway Market is an

exuberant experience that celebrates eating and eating big.Delivering the best fresh and handmade foods , Fairway alsooffers more. Indulgent , delicious and scandalously good ,‘taste first’ is and always has been Fairway’s charge. For everyman, woman and child, Fairway is a food treasure hunt at everyturn. Notoriously New York, we LIVE TO EAT BIG at Fairway.


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Fairway the Innovator – the Best of All

Specialty / fresh /convenience

Conventional /Discount

Natural /organic

The only SpecialtyPLUS market. Fairway is andalways has been a unique ‘like no other market’ foodseller.

It was the first food market that was successful atcombining the specialty shop with the conventionalstop.

The greater purpose of Fairway is clear: to deliver thebest of both conventional and specialty food in oneshopping experience. Fairway has it all – BIG FOOD,BIG SAVINGS and BOTH specialty and everyday itemsall in one exciting food celebration.

Fairway is the world’s leading grocery store forspecialty foods and best in class artisanal anddestination items.

Fairway: the one stop and full shop best of bothworlds. Consumer trend moving in this directionand Fairway positioned to capitalize− Fairway is one store in trade area truly

delivering on this dual experience− Tremendous history and culture of Fairway as a

food retail innovator in SpecialtyPLUS space –Fairway invented the space!

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Fairway – the hybrid Market


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Hybrid Format Aligned with Consumer Trends

Perishable Mix~65% ~65% ~65% ~20% ~45% ~50% ~35%

ShoppingSelection

Broad70,000 SKUs

Narrow21,000 SKUs

Narrow9,500 SKUs

Narrow18,000 SKUs

Narrow3,500 SKUs

Narrow16,500 SKUs

Moderate50,000 SKUs

DemographicBroad Narrow Narrow Narrow Broad Broad Broad

CompetitivePricing

Quality

Experiential

Customer Draw Destination& Local

Destination& Local Local Local

Destination& Local Local Local

Private Label Distinct andgrowing

Distinct andgrowing

Distinct andgrowing

Small andgrowing Large

Distinct andgrowing Generic

Conventional

Source: Fairway management estimates

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Immediate charge

Clear direction and focus for the next 120 days

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Opportunities Focus

Same store sales Customer tractions, UPT and mixshift

Price optimization and productivityof promotions

3 Step Approach: Right price, EDLP& TPR

Supply chain management 3PL and vendor management

Shrink Improve ordering tools and processdiscipline

Labor Optimize scheduling and leveragelabor dollar

ENHANCED PROFITABILITY

Phase 1: Optimize the Current Footprint


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Greater NYC Metropolitan Area

#1 food retail market

~$30 billion of annual sales

The Greater NYC Metro area represents a potential 30 store opportunity in a~$30 billion food retail market

Food Stores Food & Wine Central Production

Expansion Potential in Existing Market

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Earn the Right to Grow

1. Recover3. Re-energize the

brand2. Collective Focus

Phase 1: Recovery, Collective Focus, Planning Phase 2: Growth

4 . Driving growth and profitability

WHAT WE DID WHERE WE ARE NOW WHAT ARE WE WORKING TOWARD

Nov ’14 – Feb ‘15 Mar ’15 – Dec ‘15 Jan ‘16

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Focus on growth opportunity in Tri-State area

― FWM market share


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Current Business Update

Fiscal 3 rd quarter results to be released in early February 2015

Business performance improved in a number of key areas

3 rd Quarter cash of approximately $35 million


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ICR XChangeJanuary 2015

fwm fairway market 2015 icr xchange fairway presentation (display)vfinal

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