Albertsons 2004 Annual Report Download - page 10

Download and view the complete annual report

Please find page 10 of the 2004 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 87

  • 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
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87

ADVANTAGE LOGISTICS, SENTRY, FESTIVAL FOODS, COUNTY MARKET, SHOP ’N SAVE,
NEWMARKET, IGA, FOODLAND, JUBILEE, SUPERVALU and SUPERVALU PHARMACIES. The
company registers a substantial number of its trademarks/service marks in the United States Patent and
Trademark Office, including many of its private label product trademarks and service marks. See “Retail Food
Operations—Extreme Value Stores” and “Food Distribution Operations—Products Supplied” for further
information. The company considers certain of its trademarks and service marks to be of material importance to
its business and actively defends and enforces such trademarks and service marks.
Competition
The company’s retail food and food distribution businesses are highly competitive. The company believes
that the success of its retail food and food distribution businesses are dependent upon the ability of the
company’s retail food operations, and the retail food stores with whom it is affiliated as a supplier, to compete
successfully with other retail food stores in a consolidating market. Principal competition comes from local,
regional and national chains operating under a variety of formats that devote square footage to selling food (i.e.
supercenters, supermarkets, extreme value stores, membership warehouse clubs, dollar stores, drug stores,
convenience stores, various formats selling prepared foods, and other specialty and discount retailers), as well as
from independent food stores. The company believes that the principal competitive factors that face its owned
stores, as well as the stores owned by retailers it supplies, include the location and image of the store, the price,
quality and variety of products, and the quality and consistency of service.
The food distribution business competes directly with a number of food wholesalers. The company believes
it competes in this supply chain on the basis of product price, quality and assortment, schedule and reliability of
deliveries, the range and quality of services provided, service fees, and the location of distribution facilities.
Employees
At February 28, 2004, the company had approximately 55,200 employees. Approximately 23,600
employees are covered by collective bargaining agreements. During fiscal 2004, 15 collective bargaining
agreements covering 3,500 employees were re-negotiated. The only work stoppage in fiscal 2004 was a 28-day
strike in the third quarter in the St. Louis market where the company operates 21 regional banner stores. In fiscal
2005, 22 collective bargaining agreements covering approximately 9,300 employees will expire. The company
believes that it has generally good relations with its employees.
5