Albertsons 2002 Annual Report Download - page 3

Download and view the complete annual report

Please find page 3 of the 2002 Albertsons annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 40

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40

Year of Transition
In Fiscal 2002 we made some significant changes that shaped
how we look at our business and our future. The activities we
embarked on are part of a long-term effort to increase our earn-
ings growth rate to at least 10 percent per annum; improve our
return on invested capital to 15 percent; maintain investment
grade ratings; allocate capital to projects that provide the right
mix of growth and returns; and finally, maintain SUPERVALU’s
historic strong cash flow.
To move closer to these long-term goals, we implemented
a comprehensive plan. Progress in Fiscal 2002 was swift and
ultimately, strengthened our core competencies in retailing and
logistics. To recap, we:
Exited under-performing stores and non-core retail markets
Improved our retail execution
Rationalized our distribution network by consolidating volume
in fewer, but more efficient distribution centers
Allocated our capital to growth and efficiency projects, such as
accelerating the expansion of the Save-A-Lot network, expand-
ing in key retail markets, increasing our store remodeling
program, achieving cost savings in distribution and investing
in technology-related projects.
Dear Stakeholders,
For SUPERVALU, last year was a year of transition. SUPERVALU, like many companies, faced the uncertainty of a fragile
economic environment and an ever-changing competitive climate. We undertook a substantial number of activities during
the year and made remarkable progress on our goals. Through the uncertainty and change of the past year, SUPERVALU
emerged strong and stable. More importantly, I am happy to report we are starting the new fiscal year on a high note with
the solid momentum we achieved during the fourth quarter of last year.
1