Albertsons 2009 Annual Report Download - page 4

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our expectations. Our Own Brand labels continue to gain traction, reaching nearly 18 percent of net sales in
fiscal 2009. Since our penetration levels lag our closest competitors, we know that we have a big opportunity
to grow Our Own Brands and have incorporated this into our plans.
We are also focused on making the shopping experience easier for consumers. This past January we launched
NUTRITION IQ, a unique program developed to help customers make better informed, better-for-you food
choices right at the shelf. NUTRITION IQ is one of several initiatives underway designed to make our stores
the best place to shop.
We know the store environment is key to customer satisfaction. In fiscal 2009, we completed 161 major
remodeling projects, 17 minor remodels and opened 14 new stores during fiscal 2009. This gave many of our
stores a fresh face incorporating many of our new merchandising initiatives. As a result of remodeling
activities and a continuing focus on store operations, I am pleased to report that in fiscal 2009 our customer
satisfaction scores again showed improvement over the prior year.
We also run the preeminent, full-service grocery supply chain business in the United States. Our broad
network of distribution centers, industry-leading technology, full suite of service offerings, and our proprietary
pricing structure set us apart from our peers. Our Supply Chain business serves as a key partner and supplier
to more than 2,000 independent grocery stores and food outlets.
Our supply chain business continues to use innovative technologies to improve efficiencies. Late in fiscal
2009, we completed the second installation of our T
2
automation technology in our Lancaster, Penn.,
distribution facility which will be fully operational by the end of fiscal 2010. Our use of T
2
further
distinguishes SUPERVALU as the premier wholesale grocery supplier in the United States.
Fiscal 2010 Outlook:
Effective merchandising and marketing are two of the most critical elements that will drive our company’s
performance. Our progress over the last year and the initiatives currently underway are major steps in the
transformation of SUPERVALU to a new center-led grocery retail business model this year and well beyond.
Fiscal 2010 will be a year of investment for us, especially as it relates to creating value for customers. We
have developed a plan that appropriately balances the exciting initiatives happening at SUPERVALU with the
reality of the current economy. Today, people are thinking and acting differently, and their loyalty is often
driven by how they perceive value from our stores. SUPERVALU’s business model places the customer at the
center of our decision making. Our stores are focused on carrying the products that best meet their needs and
lifestyles with pricing in line with their expectations. We will focus on making our stores the most pleasant
and inviting option available. And we will continue to invest in our business to ensure that SUPERVALU is
positioned for long-term, sustainable improvement in both sales and earnings.
In closing, I’d like to thank you for your ongoing support and would like to acknowledge the hard work and
dedication of the entire SUPERVALU team. Fiscal 2010 will be an exciting year as we work diligently to
ensure that “good things are just around the corner”.
Jeff Noddle
Chairman & Chief Executive Officer
2