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EFTA01382337

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Amendment No. 3 to Form S-1 Table of Contents Vendor Funding. We believe our increased scale will provide optimized and improved vendor relationships, through which we receive allowances and credits for volume incentives, promotional allowances and new product placement. We intend to leverage our scale through our joint accelerated growth program with leading consumer packaged goods vendors. Marketing and Advertising. We believe our scale provides opportunities for marketing and advertising savings, primarily from lower advertising rates in overlapping regions and reduced agency spend. We intend to leverage our scale, but operate locally. Our national team will execute cutting-edge merchandising programs, optimize best practice sharing across divisions and enhance consumer understanding through consumer insight and analysis. Our local marketing teams will set brand strategy and communicate brand message to customers through the use of direct mail, radio, email and web applications, just for U and MyMixx personalization, television, social media, display and signage, search engines and weekly inserts. We also intend to develop and leverage cutting-edge loyalty and digital marketing programs. Since the Safeway acquisition, we have outsourced tactical advertising functions and implemented a standardized consumer survey index across the company. Pharmacy, Utilities and Insurance. We intend to consolidate managed care provider reimbursement programs, increase vaccine penetration and leverage our combined scale for volume discounts on branded and generic drugs. Recently, we entered into a five-year distribution agreement with McKesson Corporation ("McKesson') to source and distribute both branded and generic pharmaceuticals, commencing on April 1. 2016. Assuming that this agreement had been effective during fiscal 2014, management estimates that our purchases from McKesson would have represented approximately 7% of our fiscal 2014 sales on a pro forma ba

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