Albertsons 2008 Annual Report Download - page 42

Download and view the complete annual report

Please find page 42 of the 2008 Albertsons annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

• Food and drug price inflation or deflation
• Increases in energy costs and commodity prices, which could impact consumer spending and buying
habits and the cost of doing business
• The availability of favorable credit and trade terms
• Changes in interest rates
• The outcome of negotiations with partners, governments, suppliers, unions or customers
Competitive Practices
• The Company’s ability to attract and retain customers
• The Company’s ability to hire, train or retain employees
• Competition from other food or drug retail chains, supercenters, non-traditional competitors and
emerging alternative formats in our retail markets
• Declines in the retail sales activity of our supply chain services customers due to competition or
increased self-distribution
• Changes in demographics or consumer preferences that affect consumer spending habits
• The impact of consolidation in the retail food and supply chain services industries
Food Safety
• Events that give rise to actual or potential food contamination, drug contamination or food-borne illness,
or any adverse publicity relating to these types of concern, whether or not valid
Integration of Acquired Operation
• Our ability to successfully combine our operations with the Acquired Operations, to achieve expected
synergies and to minimize the diversion of management’s attention and resources
Store Expansion and Remodeling
• Potential delays in the development, construction or start-up of planned projects
• Our ability to locate suitable store or distribution center sites, negotiate acceptable purchase or lease
terms and build or expand facilities in a manner that achieves appropriate returns on our capital
investment
• The adequacy of our capital resources for future acquisitions, the expansion of existing operations or
improvements to facilities
• Our ability to make acquisitions at acceptable rates of return, assimilate acquired operations and
integrate the personnel of the acquired business
Liquidity
• The impact of acquisitions, including our acquisition of the Acquired Operations, on our level of
indebtedness, debt ratings, costs and future financial flexibility
• Additional funding requirements to meet anticipated debt payments and capital needs
Labor Relations
• Potential work disruptions resulting from labor disputes
36