Albertsons 2007 Annual Report Download - page 9

PART I
I
TEM 1. B
US
INE
SS
G
eneral Develo
p
ment
s
SUPERVALU is one of the lar
g
est companies in the United States
g
rocer
y
channel. SUPERVALU conducts it
s
reta
il
operat
i
ons un
d
er t
h
ree reta
il f
oo
d
store
f
ormats: com
bi
nat
i
on stores (
d
e
fi
ne
d
as
f
oo
d
an
dd
rug),
f
oo
d
stores
a
n
dli
m
i
te
d
assortment
f
oo
d
stores. SUPERVALU operates t
h
ese stores un
d
er t
h
e
f
o
ll
ow
i
n
gb
anners: A
lb
ertsons,
Save-A-Lot, Shaw’s Supermarkets, Jewel-Osco, Acme Markets, Shoppers Food & Pharmac
y
, Cub Foods, Farm
Fres
h
, Luc
k
y, S
h
op ’n Save, Scott’s, Star Mar
k
ets, Br
i
sto
l
Farms,
bi
gg’s, Horn
b
ac
h
er’s an
d
Sun
fl
ower Mar
k
et.
As of the close of the fiscal
y
ear, the Compan
y
conducted its retail operations throu
g
h 2,478 stores, includin
g
858
l
icensed limited assortment stores. Store counts are ad
j
usted throu
g
hout for the planned sale of 18 Scott’s stores
a
n
d
t
h
esa
l
eorc
l
osure o
f
10 Jewe
l
-Osco stores
i
nt
h
eM
il
wau
k
ee area. SUPERVALU a
l
so prov
id
es supp
l
yc
h
a
in
serv
i
ces,
i
nc
l
u
di
n
gf
oo
ddi
str
ib
ut
i
on an
d
re
l
ate
dl
o
gi
st
i
cs support serv
i
ces pr
i
mar
ily
across t
h
eUn
i
te
d
State
s
retail
g
rocer
y
channel. As of the close of the fiscal
y
ear, the Compan
y
served as the primar
yg
rocer
y
supplier t
o
a
pprox
i
mate
l
y 2,200 stores,
i
na
ddi
t
i
on to
i
ts own reg
i
ona
lb
anner store networ
k
,aswe
ll
as serv
i
ng as secon
d
ar
y
g
rocer
y
supp
li
er to approx
i
mate
ly
400 stores.
A
ll d
o
ll
ar an
d
s
h
are amounts
i
nt
hi
s Annua
l
Report on Form 10-K are
i
nm
illi
ons, except per s
h
are
d
ata an
d
where otherwise noted.
On June 2, 2006 (the “Acquisition Date”), the Compan
y
acquired New Albertson’s, Inc. (“New Albertsons”
)
cons
i
st
i
ng o
f
t
h
e core supermar
k
et
b
us
i
nesses (t
h
e “Acqu
i
re
d
Operat
i
ons”)
f
ormer
l
y owne
db
yA
lb
ertson’s, Inc
.
(“A
lb
ertsons”) operat
i
n
g
un
d
er t
h
e
b
anners o
f
Acme Mar
k
ets, Br
i
sto
l
Farms, Jewe
l
-Osco, S
h
aw’s Supermar
k
ets
,
Star Market, the Albertsons banner in the Intermountain, Northwest and Southern California re
g
ions, the related
i
n-store p
h
armac
i
es un
d
er t
h
e Osco an
d
Sav-On
b
anners, 10
di
str
ib
ut
i
on centers, certa
i
n reg
i
ona
l
o
ffi
ces an
d
certa
i
n corporate o
ffi
ces
i
nBo
i
se, I
d
a
h
o; G
l
en
d
a
l
e, Ar
i
zona an
d
Sa
l
tLa
k
eC
i
t
y
, Uta
h
(t
h
e “Acqu
i
s
i
t
i
on”). T
h
e
Acquisition
g
reatl
y
increased the size of the Compan
y
. Fiscal 2007 Net sales increased to $37,406 from $19,864
in fiscal 200
6
. The Acquisition also greatly increased the relative size of the Company’s Retail food segmen
t
compare
d
to
i
ts Supp
ly
c
h
a
i
n serv
i
ces se
g
ment. In
fi
sca
l
2007, our Reta
il f
oo
d
se
g
ment represente
d
74.9 percen
t
o
f the Compan
y
’s Net sales and 90.3 percent of the Compan
y
’s Operatin
g
earnin
g
s, compared to
5
3.
5
percent
a
nd
6
1.8 percent, respectively, in fiscal 200
6
.
SUPERVALU
i
s
f
ocuse
d
on reta
il
growt
h
t
h
roug
h
targete
d
new store
d
eve
l
opment, remo
d
e
l
act
i
v
i
t
i
es,
li
censee
g
rowt
h
an
d
acqu
i
s
i
t
i
ons. Dur
i
n
gfi
sca
l
2007, t
h
e Compan
y
acqu
i
re
d
1,117 stores t
h
rou
gh
t
h
e Acqu
i
s
i
t
i
on, a
dd
e
d
7
3 new stores throu
g
h new store development and closed 7
5
stores, 47 of which were acquired throu
g
hth
e
Acqu
i
s
i
t
i
on. T
h
e Company’s p
l
ans a
l
so
i
nc
l
u
d
e
l
everag
i
ng
i
ts
di
str
ib
ut
i
on operat
i
ons
b
y prov
idi
ng
l
og
i
st
i
cs an
d
serv
i
ce so
l
ut
i
ons to
i
ts
i
n
d
epen
d
ent reta
il
customers t
h
rou
gh
an
i
ncreas
i
n
gly
e
ffi
c
i
ent supp
ly
c
h
a
i
n
.
T
he Compan
y
makes available free of char
g
e at its internet website (www.supervalu.com) its annual reports o
n
Form 10-K, quarterl
y
reports on Form 10-Q, current reports on Form 8-K and an
y
amendments to these reports
f
iled or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the
“Exchan
g
e Act”) as soon as reasonabl
y
practicable after such material is electronicall
y
filed with or furnished to
the Securities and Exchan
g
e Commission (the “SEC”). Information on the Compan
y
’s website is not deemed to
b
e
i
ncorporate
db
yre
f
erence
i
nto t
hi
s Annua
l
Report on Form 10-K. T
h
e Company w
ill
a
l
so prov
id
e
i
ts SEC
f
ilin
g
s free of char
g
e upon written request to Investor Relations, SUPERVALU INC., P.O. Box 990,
Minnea
p
olis, MN
55
440.
SUPERVALU INC., a Delaware corporation, was or
g
anized in 192
5
as the successor to two wholesale
g
rocer
y
fi
rms esta
bli
s
h
e
di
nt
h
e 1870’s. T
h
e Company’s pr
i
nc
i
pa
l
execut
i
ve o
ffi
ces are
l
ocate
d
at 11840 Va
ll
ey V
i
ew
R
oad, Eden Prairie, Minnesota 55344 (Telephone: [phone]). Unless the discussion in this Annual Report
3