Albertsons 2007 Annual Report Download - page 44

• Increases in energy costs and commodity prices, which could impact consumer spending and buyin
g
h
a
bi
ts an
d
t
h
e cost o
fd
o
i
ng
b
us
i
ness
•T
h
e ava
il
a
bili
ty o
ff
avora
bl
e cre
di
tan
d
tra
d
e terms
•So
f
tness
i
n nat
i
ona
l
an
dl
oca
l
econom
i
e
s
• Changes in interest rate
s
Com
p
etitive Practice
s
• Competition from other food and/or drug retail chains, supercenters, non-traditional competitors and
emerg
i
ng a
l
ternat
i
ve
f
ormats
i
n our reta
il
mar
k
ets
•T
h
e
i
mpact o
f
conso
lid
at
i
on
i
nt
h
e reta
il f
oo
d
an
d
supp
l
yc
h
a
i
n serv
i
ces
i
n
d
ustr
i
es
• Dec
li
nes
i
nt
h
e reta
il
sa
l
es act
i
v
i
ty o
f
our supp
l
yc
h
a
i
n serv
i
ces customers
d
ue to compet
i
t
i
on o
r
i
ncrease
d
se
lf
-
di
str
ib
ut
i
o
n
•C
h
anges
i
n
d
emograp
hi
cs or consumer pre
f
erences t
h
at a
ff
ect consumer spen
di
ng
h
a
bi
t
s
S
ecurity and Food Safety
• Bus
i
ness
di
srupt
i
ons or
l
osses resu
l
t
i
ng
f
rom wart
i
me act
i
v
i
t
i
es, acts or t
h
reats o
f
terror,
d
ata t
h
e
f
t
,
information espiona
g
e, or other criminal activit
y
directed at the food and dru
g
industr
y
, the
transportation industry, or computer or communications systems
• Other events that
g
ive rise to actual or potential food contamination, dru
g
contamination or food-born
e
ill
nes
s
La
b
or Re
l
ations an
d
Em
pl
o
y
ee Bene
f
it Costs
• Potent
i
a
l
wor
kdi
srupt
i
ons resu
l
t
i
ng
f
rom
l
a
b
or
di
spute
s
• Increase
d
operat
i
ng costs resu
l
t
i
ng
f
rom r
i
s
i
ng emp
l
oyee
b
ene
fi
t costs or pens
i
on
f
un
di
ng o
bli
gat
i
on
s
• The ability to hire, train or retain employee
s
E
x
p
ansion an
d
Ac
q
uisitions
• Our ability to successfully combine our operations with the Acquired Operations, to achieve expected
synerg
i
es an
d
to m
i
n
i
m
i
ze t
h
e
di
vers
i
on o
f
management’s attent
i
on an
d
resources
• Our a
bili
ty to prov
id
e trans
i
t
i
on support serv
i
ces to t
h
e purc
h
asers o
f
t
h
e non-core supermar
k
e
t
o
perat
i
ons o
f
A
lb
ertsons
i
n a cost e
ff
ect
i
ve non-
di
spute
d
manner w
i
t
h
am
i
n
i
ma
ldi
vers
i
on o
f
mana
g
ement time
• The adequac
y
of our capital resources for future acquisitions, the expansion of existin
g
operations o
r
i
mprovements to
f
ac
ili
t
i
e
s
• Our ability to locate suitable store or distribution center sites, negotiate acceptable purchase or leas
e
terms, an
db
u
ild
or expan
df
ac
ili
t
i
es
i
n a manner t
h
at ac
hi
eves appropr
i
ate returns on our cap
i
ta
l
investment
• Our a
bili
t
y
to attract an
d
reta
i
n customer
s
• Our a
bili
ty to ma
k
e acqu
i
s
i
t
i
ons at accepta
bl
e rates o
f
return, ass
i
m
il
ate acqu
i
re
d
operat
i
ons an
d
inte
g
rate the personnel of the acquired business
38