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View Road, Eden Prairie, Minnesota 55344 (Telephone: 952-828-4000). 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) 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 amended
(the “Exchange Act”) as soon as reasonably practicable after such material is electronically filed with or
furnished to the Securities and Exchange Commission (the “SEC”). Information on the company’s website is not
deemed to be incorporated by reference into this report. 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 supply
chain services. Effective in the first quarter of fiscal 2006, SUPERVALU changed its food distribution segment
name to supply chain services reflecting the evolving nature of the business that now includes traditional food
distribution services, as well as the recently acquired third party logistics business. Retail food operations include
three retail food store formats: extreme value stores, regional price superstores and regional supermarkets. The
retail operations include results of food stores owned and results of sales to extreme value stores licensed by the
company. Supply chain services operations include results of sales to affiliated food stores, mass merchants and
other customers, and logistics arrangements. Management utilizes more than one measurement and multiple
views of data to assess segment performance and to allocate resources to the segments. However, the dominant
measurements are consistent with the consolidated financial statements. The financial information concerning the
company’s operations by reportable segment for the fiscal years ended February 25, 2006, February 26, 2005 and
February 28, 2004 is contained on page F-7.
The forward looking statements in the following sections of Item 1 are all independent of the company’s
plan to acquire the selected assets of Albertson’s, Inc. as described above.
Retail Food Operations
Overview. At February 25, 2006, the company conducted its retail food operations through a total of
1,381 retail stores, including 862 licensed extreme value stores. Store counts are adjusted for the planned sale of
Deals and corporate owned Shop ‘n Save Pittsburgh stores. Its principal retail food formats include extreme
value stores, regional price superstores and regional supermarkets. These diverse formats enable the company to
operate in a variety of markets under widely differing competitive circumstances. Based on revenues, the
company was the ninth largest grocery retailer in the United States as of February 25, 2006.
Extreme Value Stores. The company operates extreme value stores primarily under the Save-A-Lot
banner. Save-A-Lot holds the number one market position, based on revenues, in the extreme value grocery-
retailing sector. Save-A-Lot food stores typically are approximately 15,000 square feet in size, and stock
approximately 1,400 high volume food items generally in a single size for each product sold, as well as a limited
offering of general merchandise items. At a Save-A-Lot store, the majority of the food products offered for sale
are custom branded products. The specifications for the Save-A-Lot custom branded product emphasize quality
and characteristics that the company believes are comparable to national brands. The company’s attention to the
packaging of Save-A-Lot products has resulted in the company registering a number of its custom labels.
3