Albertsons 2007 Annual Report Download - page 4

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M
ilestone #2 - Servin
g
our Customers
O
ur secon
d
mi
l
estone is serving our customers t
h
roug
h
superior stan
d
ar
d
s o
f
exce
ll
ence t
h
roug
h
out our organization. By emp
h
asi
z
i
n
g
s
ervice across our o
p
erations, we are focused on the most critical com
p
onent to our sustained success: our customer.
A vita
l
un
d
erpinning to serving our customers is to a
l
ways wor
k
to
b
etter un
d
erstan
d
t
h
eir nee
d
s. To
b
est respon
d
to c
h
anging
d
emograp
h
ic
s
a
nd consumer wants, our local mana
g
ement and our marketin
g
and merchandisin
g
teams are harnessin
g
trend data and consumer insi
g
ht
to
e
nsure our regiona
l
b
ran
d
s are respon
d
ing to customer’s expectations. T
h
is is an important step to
b
ecoming more customer centric - w
h
et
h
er
i
t’s a focus on natural and or
g
anic foods, the convenience of home meal replacement, or expanded pharmacy services. SUPERVALU i
s
b
ecoming a smarter retai
l
er - not just a
l
arger one
.
Raising the bar on our store offerings, shopping experience and in-store service levels is also an important focus. Examples of
this include:
f
•
Remodelin
g
pro
g
rams that will enable us to implement innovative merchandisin
g
and marketin
g
pro
g
rams
.
•
Loca
ll
y
d
riven programs to
k
eep us re
l
evant in our communities.
•
Our stores are continuin
g
to roll out innovative customer service pro
g
rams focused on superior in-store and front-end experien
ces.
With these ty
p
es of initiatives in
p
lace and a
p
assionate focus on store conditions and customer-centric amenities, we are cons
t
antly workin
g
t
o ensure t
h
at our s
h
o
pp
ers see our stores as t
h
e “
b
est
pl
ace to s
h
o
p
” in t
h
eir res
p
ective mar
k
ets.
M
i
l
estone #3 - Investing in our F
l
ee
t
O
ur third milestone is a commitment to investin
g
in our store network. With increasin
g
industry consolidation and more choices f
o
r
t
h
e
c
onsumer t
h
an ever
b
e
f
ore, we
b
e
l
ieve t
h
at grocery retai
l
success wi
ll
b
e
d
riven
b
y companies t
h
at up
d
ate store
fl
eets, operat
e
b
est-in-c
l
ass
i
nfrastructures and have sufficient cash flow for operational investment. Our commitment to investin
g
in our network sets the sta
g
e for
S
UPERVALU to be an industr
y
leader
.
Durin
g
Fiscal 2007 we invested a ma
j
ority of our
$
1 billion capital pro
g
ram in our retail stores, which included 72 ma
j
or stor
e
remodels
,
3
4 new grocery stores an
d
73 new
l
imite
d
assortment grocery stores. We are striving to ac
h
ieve an important
b
enc
h
mar
k
o
f
h
avin
g
8
0
p
ercent of our stores new or newly remodeled within the last seven years. In Fiscal 2008, we will invest a
pp
roximately
$
1.2
b
illi
o
n
ac
r
oss
o
ur entire com
p
any.
O
ur recent
l
y intro
d
uce
d
an
d
h
ig
hl
y versati
l
e Premium Fres
h
& Hea
l
t
h
y new store an
d
remo
d
e
l
program - w
h
ic
h
consists o
f
a serie
s
o
f
c
ustomizable store modules - is
j
ust be
g
innin
g
to take root across our network. Modules are bein
g
applied appropriately for in
d
i
vi
du
al
b
anners an
d
d
emo
g
rap
h
ic situations, a
ll
wit
h
a
f
ocus on ma
k
in
g
it easy an
d
convenient to s
h
op
f
or w
h
o
l
esome mea
l
s. Examp
l
es o
f
these
m
o
d
u
l
es inc
l
u
d
e Wi
ld
Harvest, a natura
l
/organic store wit
h
in a store; an
d
S
h
op t
h
e Wor
ld
, an internationa
l
grocery mo
d
u
l
e cater
i
ng to
e
thnic demo
g
raphics and to customers lookin
g
for variety.
2
Total Store Network
1,
38
1
2
,
473
Fisca
l
2006 Fisca
l
200
7