Changes to Existing Products

1. Any changes to existing products, including packaging changes, must be reported to the Category Manager and the appropriate RMS analyst.
   
   
2. Items having changed must be sent to ECCnet Image & Validation (ECCnet I&V) office in Calgary to ensure product dimension accuracy. Please also make sure that your product information is kept current within the ECCNet Registry (catalogue). Failure to ensure any of the above may result in administrative cost being charged against you.
   
   
3. Merchandising Services will be responsible to make the necessary planogram adjustments if a product undergoes changes in its size, and/or case pack. Please note that if store relines become necessary due to item size changes, vendors may be charged for any consequential shelf reline costs.

THE DISCONTINUED ITEM PROCESS (NATIONAL BRANDS)

Policy: Safeway may from time to time discontinue items that are no longer needed to satisfy customer demand.

1. Prior to making any decisions regarding discontinuing an item, the following considerations will have been made by the Category Manager:
   
   

   a)	How is the targeted SMIC level for the new item performing compared to the Market? What is the trend in the ROM (Rest of Market) for this SMIC (Safeway Merchandising Identification Code) level? Does it suggest that we should grow the selection?
   b)	Is there another SMIC level within the CDT (Consumer Decision Tree) that is declining in the Market where item selection should be reviewed?
   c)	If the discontinued item is being replaced by a new item, and the new item is a "me too", assess the selection in the switching level to determine if the new item will contribute more profit to the switching level.

2. In the event that Safeway discontinues an item, all shipments of the item to the stores will be stopped immediately.
   
   
3. Although it is a function of Inventory Control, it is the Category Manager's responsibility to ensure that the supplier picks up all remaining warehouse inventory within 4 weeks. If the supplier refuses to pick up the discontinued items at the warehouse, or if it is not picked up within 4 weeks, Safeway reserves the right to take any and all action required to dispense of this inventory.
   
   
4. Safeway has established retail Best Practices to ensure all discontinued inventory be dealt with effectively and at the lowest possible cost to both Safeway and the vendors.
   
   
5. SCOP discontinued items may be priced at a reduced retail intended to sell through store inventory prior to the section being relined, as negotiated between Safeway and each manufacturer.
   

RETAIL MARKETING SOLUTIONS CANADA, INC. (RMS)

RETAIL MARKETING SOLUTIONS CANADA, INC. (RMS) is a privately owned corporation, dedicated to Safeway, and organized to meet the merchandising needs of Canada Safeway Limited.

RMS consists of two teams:

• The Merchandising Services Department working out of the Safeway Corporate office in Calgary. This group is responsible for schematics, store layouts, category analysis, the Safeway Vendor Program and SCOP (Safeway Category Optimization Process) Implementation.
  
  
• The second group consists of over 60 Retail Coordinators who oversee retail execution of item placement and shelf maintenance in all Safeway stores across Canada. They are responsible for MEDS audits, "First to Market" audits, schematic verification, out of stock audits, Corporate Brand audits, and execution of the Vendor Program. Retail Coordinators call on every Canada Safeway store at minimum twice per month, including remote areas.

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