Lucky Stores, Inc. and Subsidiaries - Page 6

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          expected to be sold.  In fact, store orders exceeding actual                
          sales were in the 6 percent range during the years in issue.                
               Petitioner's in-store employees placed the newly delivered             
          bread either on the store shelves or in the stock room.  If the             
          bread were placed in the stock room, petitioner's employees later           
          placed it on the shelves.  Petitioner's bread shelves are                   
          generally 20 inches deep.  In the front part of the shelf, a                
          store's merchandisers typically stacked loaves of bread two-high,           
          with the label, or "gusset," end facing out, and the date coded             
          Kwik Lok facing in.  In the back part of the shelf the loaves               
          were also stacked two-high, but in this case the loaves were                
          stacked parallel with the customer aisle.  The older bread would            
          be placed on the top layer; the newer bread on the bottom or in             
          the back.  Thus, the customer would have access to the oldest               
          bread first, unless he/she deliberately "dug through" and "read             
          the codes" to find the newest bread.  A customer could buy a loaf           
          of petitioner's bread on the third or fourth day after delivery,            
          take it home, put it in a bread box or leave it on the counter              
          for a week to 10 days, and still have a good, edible product.               
          The customer could further extend the life of the bread by                  
          freezing it.                                                                
               Bread that sits on the store shelf for 5 days does not lose            
          nutritional value or taste, but does lose moisture, so the bread            
          firms up a little bit, losing some "squeezeability."  During the            





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