Albertsons 2005 Annual Report Download - page 5

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expansion, remodeling activity and technology enhancements. SUPERVALU also continued
to reduce debt levels during the year. The strength of our business operating cash flow and
prudent capital spending provides us with the financial flexibility to invest for future growth.
Business Outlook
During fiscal 2006, we’ll build upon our core strategies by forging ahead with a number
of programs that represent SUPERVALU’s next-generation approach to the market.
• We’ll further sharpen our regional retail excellence across multiple banners.
Our regional banner growth plan calls for approximately 10 to 12 new stores
and approximately 40 major and minor store remodels.
• Our growth plan for Save-A-Lot will remain robust. Our fiscal 2006 plans call
for approximately 90 to 110 new extreme value food combination stores,
including licensees, and approximately 100 extreme-value combination store
conversions.
• The acquisition of Total Logistics provides us with the path to branch out into
larger supply chain business opportunities, both within and beyond grocery
retail. With Total Logistics as a platform, we can now aggressively build our
presence in the 3PL arena.
• W. Newell & Co., our new produce company, provides a tremendous business
opportunity that we hope to leverage for our own retail operations, our Midwest
independent grocery retail customers, and new customers. Ultimately, we hope
to take W. Newell & Co. nationwide.
• Lastly, we will remain focused on our financial goals and prudent capital
spending. Having achieved our previous long-term return-on-invested-capital
goal of 15 percent, we are setting a new long-term goal of 18 percent.
We are confident that SUPERVALU is deploying the best short-term and long-term
strategies aimed at the highly dynamic retail environment, the evolving needs of the grocery
channel, and the improvement in our financial metrics.
Jeff Noddle
Chairman and Chief Executive Officer
3