Albertsons 2007 Annual Report Download - page 16

W
e
f
ace a h
ig
h level o
f
compet
i
t
i
on
i
n the reta
i
l
f
ood and supply cha
i
n serv
i
ces bus
i
nesses, wh
i
ch coul
d
adversel
y
a
ff
ect our
fi
nanc
i
al
p
er
f
ormance
.
Th
e
i
n
d
ustr
i
es
i
nw
hi
c
h
we compete are extreme
l
y compet
i
t
i
ve. Our Reta
il f
oo
db
us
i
ness
f
aces compet
i
t
i
on
f
ro
m
re
gi
ona
l
an
d
nat
i
ona
l
c
h
a
i
ns operat
i
n
g
un
d
er a var
i
et
y
o
ff
ormats t
h
at
d
evote square
f
oota
g
etose
lli
n
gf
oo
d
(
i
.e
.
combination food and dru
g
stores, food stores, limited assortment food stores, membership warehouse clubs,
d
o
ll
ar stores,
d
rug stores, conven
i
ence stores, var
i
ous
f
ormats se
lli
ng prepare
df
oo
d
s, an
d
ot
h
er spec
i
a
l
ty an
d
di
scount reta
il
ers), as we
ll
as
f
rom
i
n
d
epen
d
ent
f
oo
d
store operators
i
nt
h
e mar
k
ets w
h
ere we
h
ave reta
il
o
perations. The Compan
y
’s third part
y
lo
g
istics business competes nationwide in a hi
g
hl
y
fra
g
mented
mar
k
etp
l
ace, w
hi
c
hi
nc
l
u
d
es a num
b
er o
fl
arge
i
nternat
i
ona
l
an
dd
omest
i
c compan
i
es, as we
ll
as many sma
ll
er,
more re
gi
ona
l
compet
i
tors.
B
ot
h
t
h
e Reta
il f
oo
d
an
d
Supp
ly
c
h
a
i
n serv
i
ces
b
us
i
nesses are su
bj
ect to compet
i
t
i
ve pract
i
ces t
h
at ma
y
a
ff
ect:
(i) the prices at which we are able to sell products at our retail locations, (ii) sales volume, (iii) the abilit
y
of ou
r
di
str
ib
ut
i
on customers to se
ll
pro
d
ucts we supp
l
y, w
hi
c
h
may a
ff
ect
f
uture or
d
ers, (
i
v) c
h
anges
i
n
d
emograp
hi
c
s
a
n
d
consumer pre
f
erences, an
d
(v) our a
bili
t
y
to attract an
d
reta
i
n customers. In a
ddi
t
i
on, t
h
e nature an
d
extent o
f
consolidation in the retail food and food distribution industries could affect our com
p
etitive
p
osition or that of
o
ur
di
str
ib
ut
i
on customers
i
nt
h
e mar
k
ets
w
e ser
v
e.
Threats or
p
otent
i
al threats to secur
i
t
y
or
f
ood sa
f
et
y
ma
y
adversel
y
a
ff
ect our bus
i
ness.
Wart
i
me act
i
v
i
t
i
es, t
h
reats or acts o
f
terror,
d
ata t
h
e
f
t,
i
n
f
ormat
i
on esp
i
onage, or ot
h
er cr
i
m
i
na
l
act
i
v
i
ty
di
recte
d
a
tt
h
e
g
rocer
y
or
d
ru
g
store
i
n
d
ustr
y
,t
h
e transportat
i
on
i
n
d
ustr
y
, or computer or commun
i
cat
i
ons s
y
stems
,
includin
g
securit
y
measures implemented in reco
g
nition of actual or potential threats, could increase securit
y
costs, a
d
verse
l
ya
ff
ect our operat
i
ons, or
i
mpact consumer
b
e
h
av
i
or an
d
spen
di
ng an
d
customer or
d
ers. Ot
h
er
events t
h
at
gi
ve r
i
se to actua
l
or potent
i
a
lf
oo
d
contam
i
nat
i
on,
d
ru
g
contam
i
nat
i
on, or
f
oo
d
-
b
orne
ill
ness cou
ld
h
ave an adverse effect on our operatin
g
results
.
S
evere weather and natural disasters can adversel
y
im
p
act the areas in which we conduct business.
Severe weather conditions such as hurricanes or tornadoes, as well as other natural disasters, could dama
g
eou
r
propert
i
es, a
d
verse
l
y
i
mpact t
h
e areas
i
nw
hi
c
h
we con
d
uct our
b
us
i
ness or t
h
e supp
li
ers
f
rom w
h
om we o
b
ta
in
pro
d
ucts or ot
h
erw
i
se cause
di
srupt
i
ons to operat
i
ons or a
ff
ect our supp
ly
c
h
a
i
ne
ffi
c
i
enc
i
es. In a
ddi
t
i
on,
u
nseasonabl
y
adverse climatic conditions that impact
g
rowin
g
conditions and the crops of food producers ma
y
ad
verse
l
ya
ff
ect t
h
e ava
il
a
bili
ty or cost o
f
certa
i
n pro
d
ucts w
i
t
hi
nt
h
e grocery supp
l
yc
h
a
i
n.
If
we
f
a
i
l to comb
i
ne our bus
i
nesses w
i
th the bus
i
nesses we ac
q
u
i
red
f
rom Albertsons
i
n a success
f
ul and
t
imely manner, it could have a material adverse effect on our business, financial condition or results o
f
o
p
erat
i
ons.
We ma
y
not be able to realize the s
y
ner
g
ies, business opportunities and
g
rowth prospects anticipated in
connect
i
on w
i
t
h
t
h
e Acqu
i
s
i
t
i
on. We may exper
i
ence
i
ncrease
d
compet
i
t
i
on t
h
at
li
m
i
ts our a
bili
ty to expan
d
ou
r
b
us
i
ness, we ma
y
not
b
ea
bl
e to cap
i
ta
li
ze on expecte
db
us
i
ness opportun
i
t
i
es
i
nc
l
u
di
n
g
reta
i
n
i
n
g
our curren
t
customers, assumptions underl
y
in
g
estimates of expected cost savin
g
sma
y
be inaccurate or
g
eneral industr
y
an
d
b
us
i
ness con
di
t
i
ons may
d
eter
i
orate. In a
ddi
t
i
on, com
bi
n
i
ng certa
i
n operat
i
ons o
f
our Company w
i
t
h
t
h
e
Acqu
i
re
d
Operat
i
ons
h
as requ
i
re
d
s
ig
n
ifi
cant e
ff
ort an
d
expense. Personne
lh
ave
l
e
f
tan
d
ma
y
cont
i
nue to
l
eave
o
r be terminated because of the Acquisition. Our mana
g
ement ma
y
have its attention diverted as it continues to
com
bi
ne certa
i
n operat
i
ons o
fb
ot
h
compan
i
es. I
f
t
h
ese
f
actors
li
m
i
t our a
bili
ty to com
bi
ne suc
h
operat
i
ons
success
f
u
lly
or on a t
i
me
ly b
as
i
s, our expectat
i
ons o
ff
uture resu
l
ts o
f
operat
i
ons,
i
nc
l
u
di
n
g
certa
i
n cost sav
i
n
gs
a
nd s
y
ner
g
ies expected to result from the Acquisition, ma
y
not be met. If such difficulties are encountered or if
suc
h
synerg
i
es,
b
us
i
ness opportun
i
t
i
es an
d
growt
h
prospects are not rea
li
ze
d
,
i
t cou
ld h
ave a mater
i
a
l
a
d
vers
e
e
ff
ect on our
b
us
i
ness,
fi
nanc
i
a
l
con
di
t
i
on an
d
resu
l
ts o
f
operat
i
ons
.
10