Albertsons 2007 Annual Report Download - page 11

Save-A-Lot custom branded product has resulted in the Company registering a number of its custom labels. The
C
ompany opened its first Sunflower Market in fiscal 200
6
to focus on the growing market for value-price
d
natural and or
g
anic products.
Principal Markets.
A
lbertsons stores operate primaril
y
in Southern California, the Northwestern an
d
I
ntermounta
i
nUn
i
te
d
States an
d
Sout
h
ern Neva
d
a. S
h
aw’s Supermar
k
ets an
d
Star Mar
k
et stores operate
t
h
rou
gh
out New En
gl
an
d
an
d
t
h
e Boston metropo
li
tan area. Jewe
l
-Osco operates pr
i
mar
ily i
nt
h
eC
hi
ca
g
o
metropolitan area. Acme Markets operates primaril
y
in the Philadelphia metropolitan area, includin
g
th
e
surroun
di
ng areas
i
nDe
l
aware, Mary
l
an
d
an
d
New Jersey. S
h
oppers Foo
d
&P
h
armacy operates
i
nt
he
Was
hi
n
g
ton D.C. an
d
Ba
l
t
i
more mar
k
ets. Cu
b
Foo
d
s operates pr
i
mar
ily i
nt
h
eM
i
nneapo
li
s/St. Pau
l
mar
k
ets.
Farm Fresh operates primaril
y
in the Richmond and Hampton Roads areas of Vir
g
inia. Shop ’n Save operate
s
pr
i
mar
il
y
i
nt
h
e St. Lou
i
s mar
k
et. Br
i
sto
l
Farms operates pr
i
mar
il
y
i
n Sout
h
ern Ca
lif
orn
i
a.
bi
gg’s operates
i
nt
he
Ci
nc
i
nnat
i
mar
k
et. Horn
b
ac
h
er’s operates
i
nt
h
e Far
g
o mar
k
et. Luc
ky
operates pr
i
mar
ily i
n Las Ve
g
as an
d
Southern California. Save-A-Lot operates primaril
y
in the Midwest, east of the Mississippi, alon
g
the easter
n
sea
b
oar
df
rom Ma
i
ne to F
l
or
id
a, an
d
Texas. Sun
fl
ower Mar
k
et operates
i
nIn
di
anapo
li
s, C
hi
cago an
d
Co
l
um
b
us
,
Ohi
o.
S
u
pp
l
y
Chain Service
s
O
verv
i
ew
.
The Company provides supply chain services, including distribution and related logistics and
support serv
i
ces to reta
il
ers
f
or
f
oo
d
an
d
non-
f
oo
d
pro
d
ucts an
di
st
h
e
l
argest pu
bli
c company
f
oo
d
w
h
o
l
esa
l
er
i
n
the nation. At Februar
y
24, 2007, the Compan
y
was affiliated with approximatel
y
2,200 stores as their primar
y
g
rocery supplier, in addition to the Company’s own regional banner store network, and approximately 400
addi
t
i
ona
l
stores as a secon
d
ary grocery supp
li
er. T
h
e Company’s
di
str
ib
ut
i
on customers
i
nc
l
u
d
es
i
ng
l
ean
d
multiple
g
rocer
y
store independent operators, re
g
ional and national chains, mass merchants and the militar
y.
Such customers are located in 48 states, and range in size from small convenience stores to 200,000 square foot
supercenters. T
h
e Company a
l
so o
ff
ers t
hi
r
d
party
l
og
i
st
i
cs so
l
ut
i
ons t
h
roug
hi
ts su
b
s
idi
ary, Tota
l
Log
i
st
i
cs, Inc.
a
nd its Advanta
g
eLo
g
istics operations. These operations provide customers with a suite of lo
g
istics services,
including warehouse management, transportation, procurement, contract manufacturing and logistics engineering
a
n
d
management serv
i
ces.
L
ogistics Networ
k
.T
h
e Compan
yh
as esta
bli
s
h
e
d
a networ
k
o
f
strate
gi
ca
lly l
ocate
ddi
str
ib
ut
i
on center
s
u
tilizin
g
a multi-tiered lo
g
istics s
y
stem. The network includes facilities that carr
y
slow turn or fast turn
g
roceries
,
per
i
s
h
a
bl
es, genera
l
merc
h
an
di
se an
dh
ea
l
t
h
an
db
eauty care pro
d
ucts. T
h
e networ
k
compr
i
ses 24
di
str
ib
ut
i
o
n
f
ac
ili
t
i
es, 11 o
f
w
hi
c
h
supp
ly
Compan
y
-owne
d
reta
il
stores
i
na
ddi
t
i
on to t
hi
r
d
part
y
reta
il
stores.
T
he Compan
y
believes that its multi-tiered distribution network increases bu
y
in
g
scale, improves operatin
g
e
ffi
c
i
enc
i
es an
dl
owers costs o
f
operat
i
ons. T
h
e Company
i
s cont
i
nu
i
ng to wor
k
on
b
us
i
ness
i
n
i
t
i
at
i
ves t
h
at w
ill
d
e
li
ver
l
ower costs o
f
operat
i
ons. De
li
ver
i
es to reta
il
stores are ma
d
e
f
rom t
h
e Company’s
di
str
ib
ut
i
on centers
b
y
compan
y
-owned trucks, third part
y
independent truckin
g
companies or customer-owned trucks. In addition, the
C
ompany prov
id
es certa
i
n
f
ac
ili
tat
i
ve serv
i
ces
b
etween
i
ts
i
n
d
epen
d
ent reta
il
ers an
d
ven
d
ors re
l
ate
d
to pro
d
uct
s
t
h
at are
d
e
li
vere
ddi
rect
l
y
b
y supp
li
ers to reta
il
stores un
d
er programs esta
bli
s
h
e
db
yt
h
e Company. T
h
ese
services include sourcin
g
, invoicin
g
and pa
y
ment services.
O
ur
O
wn Brand
s
Our Own Bran
d
s are pro
d
uce
d
to t
h
e Company’s spec
ifi
cat
i
ons
b
y many supp
li
ers an
d
compete
i
n categor
i
e
s
throu
g
hout all strate
g
ic areas of its stores includin
g
natural and or
g
anic, dair
y
, health and beaut
y
, and frozen
f
oods. Our Own Brands are or
g
anized into three distinct tiers: premium brands, includin
g
essensi
a
™
a
nd
W
il
d
H
ar
v
es
t
™
,
o
ff
er un
i
que, prem
i
um qua
li
ty pro
d
ucts
i
n
hi
g
hl
y compet
i
t
i
ve categor
i
es;
fi
rst t
i
er
b
ran
d
s,
i
nc
l
u
di
n
g
Fla
v
orite
™
,
Richfood
™
,
equalin
e
™, HomeLif
e
™
,
Albertson
s
™, Acme™
a
nd Shaw’s provide shoppers qualit
y
national brand equivalent products at a competitive price; and value brands, includin
g
Shopper’s Valu
e
™
a
n
d
Goo
d
Da
y
™
off
er
b
u
d
get consc
i
ous consumers a qua
li
ty a
l
ternat
i
ve to nat
i
ona
lb
ran
d
satsu
b
stant
i
a
l
sav
i
ngs
.
5