Dave Cooke's questions to INGLES MARKETS (IMKTA) leadership • Q2 2016
Question
Dave Cooke of Wells Fargo inquired about inflation and deflation trends, the competitive promotional environment, the company's exploration of click-and-collect services, the strategic value of the fluid dairy processing business, and the potential threat from new competitors like Lidl and Wegmans entering the North Carolina market.
Answer
CFO Ron Freeman explained that inflation varies by department, with milk prices down and some relief in produce. He declined to comment on competitor activities or specific threats from new entrants like Lidl and Wegmans, citing company policy. Regarding technology, Mr. Freeman confirmed Ingles is exploring various customer access and payment options, including click-and-collect, but has no announcements. He affirmed that the fluid dairy business is a key strategic asset, providing a steady milk supply and a diversified revenue stream.