Albertsons 2004 Annual Report Download - page 7

PART I
ITEM 1. BUSINESS
General Development
SUPERVALU is one of the largest companies in the United States grocery channel. SUPERVALU conducts
its retail operations under three retail food store formats: extreme value stores primarily under the retail banner
Save-A-Lot; price superstores, under the regional retail banners of Cub Foods, Shop ’n Save, Shoppers Food
Warehouse and bigg’s; and supermarkets, under the regional retail banners of Farm Fresh, Scott’s and
Hornbacher’s. As of the close of the fiscal year, the company conducted its retail operations through 1,483 stores,
including 821 licensed extreme value stores. SUPERVALU also provides food distribution and related logistics
support services across the United States retail grocery channel. As of the close of the fiscal year, the company
served as the primary grocery supplier to approximately 2,470 retail food stores in 48 states, in addition to its
own regional banner store network, and as a secondary supplier to approximately 660 stores.
SUPERVALU is focused on retail growth through targeted new store development, remodel activities,
licensee growth and acquisitions. During fiscal 2004, the company added 66 net new stores through new store
development. The company’s plans also include leveraging its distribution operations by providing logistics and
service solutions through an efficient supply chain, which will allow it to affiliate new independent customers
and expand its recently launched Advantage Logistics third party logistics business. Consolidation opportunities
in the food distribution industry may provide another avenue for growth.
In September 2003, the company acquired certain grocery distribution operations in the Midwest, formerly
owned by Fleming, in exchange for its New England operations, pursuant to an Asset Exchange Agreement with
C&S Wholesale Grocers (the “Asset Exchange”). Overall revenues declined as a result of the Asset Exchange,
but the efficiency of the company’s operations were enhanced as the new business was absorbed by the
company’s existing Midwestern facilities. The company has estimated that the Asset Exchange will benefit full
year fiscal 2005 earnings by $0.07 to $0.10 per share.
SUPERVALU INC., a Delaware corporation, was organized in 1925 as the successor to two wholesale
grocery firms established in the 1870’s. The company’s principal executive offices are located at 11840 Valley
View Road, Eden Prairie, Minnesota 55344 (Telephone: [phone]). Unless the discussion in this Annual
Report on Form 10-K indicates otherwise, all references to the “company,” “SUPERVALU” or “Registrant”
relate to SUPERVALU INC. and its majority-owned subsidiaries.
The company makes available free of charge at its internet website (www.supervalu.com) various corporate
governance materials, its annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form
8-K and any amendments to these reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities
Exchange Act of 1934 as soon as reasonably practicable after such material is electronically filed with or
furnished to the Securities and Exchange Commission. Information on the company’s website is not deemed to
be incorporated by reference into this Annual Report on Form 10-K.
The company will also provide its SEC filings free of charge upon written request to the Corporate
Secretary, SUPERVALU INC., P.O. Box 990, Minneapolis, MN 55440.
Additional description of the company’s business is found in Part II, Item 7 of this report.
Financial Information About Reportable Segments
The company’s business is classified by management into two reportable segments: Retail food and food
distribution. Retail food operations include three retail food store formats: extreme value stores, regional price
superstores and regional supermarkets. The retail formats include results of food stores owned and results of
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