Albertsons 2007 Annual Report Download - page 10

o
n Form 10-K indicates otherwise, all references to the “Company” or “SUPERVALU” relate to SUPERVALU
I
NC. an
di
ts ma
j
or
i
ty-owne
d
su
b
s
idi
ar
i
es.
A
ddi
t
i
ona
ld
escr
i
pt
i
on o
f
t
h
e Company’s
b
us
i
ness
i
s
f
oun
di
n Part II, Item 7 o
f
t
hi
s Annua
l
Report on
Form
10
-K.
Financial Information About Reportable Se
g
ments
T
he Compan
y
’s business is classified b
y
mana
g
ement into two reportable se
g
ments: Retail food and Suppl
y
chain services. Retail food o
p
erations include three Retail food store formats: combination stores, food stores and
li
m
i
te
d
assortment
f
oo
d
stores. T
h
e Reta
il f
oo
d
operat
i
ons
i
nc
l
u
d
e resu
l
ts o
ff
oo
d
stores owne
d
an
d
resu
l
ts o
f
sales to limited assortment food stores licensed b
y
the Compan
y
. Suppl
y
chain services operations include result
s
o
f sales to affiliated food stores, mass merchants and other customers, and logistics arrangements. Managemen
t
u
t
ili
zes more t
h
an one measurement an
d
mu
l
t
i
p
l
ev
i
ews o
fd
ata to assess segment per
f
ormance an
d
to a
ll
ocate
resources to the se
g
ments. However, the dominant measurements are consistent with the consolidated financial
statements. The financial information concerning the Company’s operations by reportable segment for the fisca
l
years ended February 24, 2007, February 25, 2006 and February 26, 2005 is contained on page F-6
.
R
etail Foo
d
O
verv
i
ew. At Fe
b
ruary 24, 2007, t
h
e Company con
d
ucte
di
ts Reta
il f
oo
d
operat
i
ons t
h
roug
h
a tota
l
o
f
2,478
retail stores, includin
g
8
5
8 licensed Save-A-Lot stores. The Compan
y
’s principal Retail food formats includ
e
combination stores, food stores and limited assortment food stores. Its branded positions enable the Company t
o
o
perate
i
n a var
i
ety o
f
mar
k
ets un
d
er w
id
e
l
y
diff
er
i
ng compet
i
t
i
ve c
i
rcumstances. T
h
e Company’s com
bi
nat
i
o
n
a
nd food stores are supplied b
y
11 dedicated distribution centers and 11 distribution centers that are part of th
e
Supply chain services segment supplying both Company-owned and third party retail stores. The Company holds
t
h
e num
b
er one or num
b
er two mar
k
et pos
i
t
i
on
i
n many
l
arge an
d
grow
i
ng mar
k
ets.
Combination
S
tores.
Th
e com
bi
nat
i
on stores com
bi
ne a grocery an
d
a
d
rug store un
d
er one roo
f
. Most o
f
these stores include a complete
g
rocer
y
offerin
g
, prescription dru
g
s and expanded sections of cosmetics and
g
eneral merchandise, in addition to specialty departments such as service seafood and meat, bakery, servic
e
d
e
li
catessen,
li
quor,
fl
ora
l
an
di
n-store
b
an
k
s. T
h
ese pro
d
uct an
d
serv
i
ce o
ff
er
i
ngs a
ll
ow easy, one-stop s
h
opp
i
ng
.
As of Februar
y
24, 2007, the Compan
y
operated 87
6
combination stores under the Albertsons, Sav-On, Jewel-
Osco, Shaw’s Supermarkets, Acme Markets, Cub Foods, Shoppers Food & Pharmacy, Farm Fresh, Shop ’n Save,
bigg’s and Star Market banners. Typical combination stores carry about 50,000 items and average approximatel
y
6
0,000 s
q
uare feet.
Food
S
tores. The food stores focus their product and service offerin
g
s primaril
y
on food departments an
d
g
enerally include many of the same product and service offerings as combination stores, but on a more limite
d
b
as
i
san
d
w
i
t
h
out a p
h
armacy. As o
f
Fe
b
ruary 24, 2007, t
h
e Company operate
d
412
f
oo
d
stores un
d
er t
he
Albertsons, Shaw’s Supermarkets, Acme Markets, Shoppers Food & Pharmac
y
, Shop ’n Save, Bristol Farms
,
J
ewel, Star Market, Farm Fresh, Hornbacher’s, Lucky and Cub Foods banners. Typical food stores carry about
40,000
i
tems an
d
average approx
i
mate
l
y 40,000 square
f
eet
.
L
imited Assortment Food
S
tores
.
T
h
e Company operates 332
li
m
i
te
d
assortment stores
i
nc
l
u
di
ng 328 un
d
er
the Save-A-Lot banner and 4 under the Sunflower Market banner. The Compan
y
licenses 8
5
8 Save-A-Lot stores
to inde
p
endent o
p
erators. Save-A-Lot stores are su
pp
lied from 1
5
dedicated distribution centers. Save-A-Lo
t
h
o
ld
st
h
e num
b
er one mar
k
et pos
i
t
i
on,
b
ase
d
on revenues,
i
nt
h
e extreme va
l
ue grocery-reta
ili
ng sector.
Save-A-Lot food stores t
y
picall
y
are approximatel
y
1
5
,000 square feet in size, and stock approximatel
y
1,400
h
igh volume food items generally in a single size for each product sold, as well as a limited offering of general
merc
h
an
di
se
i
tems. At a Save-A-Lot store, t
h
ema
j
or
i
ty o
f
t
h
e
f
oo
d
pro
d
ucts o
ff
ere
df
or sa
l
e are custom
b
ran
d
e
d
products. The specifications for the Save-A-Lot custom branded product emphasize qualit
y
and characteristic
s
that the Company believes are comparable to national brands. The Company’s attention to the packaging of
4