Albertsons 2010 Annual Report Download - page 11

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PART I
ITEM 1. BUSINESS
General
SUPERVALU INC. (“SUPERVALU” or the “Company”), a Delaware corporation, was organized in 1925 as the
successor to two wholesale grocery firms established in the 1870’s. The Company’s principal executive offices are
located at 11840 Valley View Road, Eden Prairie, Minnesota 55344 (Telephone: 952-828-4000). All references to
the “Company” or “SUPERVALU” relate to SUPERVALU INC. and its majority-owned subsidiaries.
SUPERVALU is one of the largest companies in the United States grocery channel. SUPERVALU conducts its
retail operations under the Acme, Albertsons, Bristol Farms, Cub Foods, Farm Fresh, Hornbacher’s, Jewel-
Osco, Lucky, Save-A-Lot, Shaw’s, Shop ’n Save, Shoppers Food & Pharmacy and Star Market banners as well
as in-store pharmacies under the Osco and Sav-on banners. Additionally, the Company provides supply chain
services, primarily wholesale distribution, across the United States retail grocery channel.
On June 2, 2006, the Company acquired New Albertson’s, Inc. (“New Albertsons”) consisting of the core
supermarket businesses (the “Acquired Operations”) formerly owned by Albertson’s, Inc. (“Albertsons”)
operating approximately 1,125 stores under the banners of Acme, Albertsons, Bristol Farms, Jewel-Osco,
Shaw’s, Star Market, the related in-store pharmacies under the Osco and Sav-on banners, 10 distribution
centers and certain regional and corporate offices (the “Acquisition”). As part of the Acquisition, the Company
acquired the Acme, Albertsons, Bristol Farms, Jewel, Osco, Sav-on and Shaw’s trademarks and tradenames
(the “Acquired Trademarks”). The Acquisition greatly increased the size of the Company.
SUPERVALU is focused on long-term retail growth through targeted new store development and remodel
activities. During fiscal 2010, the Company added 40 new stores through new store development and closed or
sold 112 stores, including planned disposals. The Company leverages its distribution operations by providing
wholesale distribution and logistics and service solutions to its independent retail customers through its Supply
chain services segment.
The Company makes available free of charge at its internet website (www.supervalu.com) its annual reports on
Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to these reports
filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”) as soon as reasonably practicable after such material is electronically filed with or furnished
to the Securities and Exchange Commission (the “SEC”). Information on the Company’s website is not
deemed to be incorporated by reference into this Annual Report on Form 10-K. The Company will also
provide its SEC filings free of charge upon written request to Investor Relations, SUPERVALU INC.,
P.O. Box 990, Minneapolis, MN 55440.
All dollar and share amounts in this Annual Report on Form 10-K are in millions, except per share data and
where otherwise noted.
Financial Information About Reportable Segments
The Company’s business is classified by management into two reportable segments: Retail food and Supply
chain services. These reportable segments are two distinct businesses, one retail and one wholesale, each with
a different customer base, marketing strategy and management structure. The Retail food reportable segment is
an aggregation of the Company’s retail operating segments, which are organized based on format (traditional
retail food stores and hard-discount food stores). The Retail food reportable segment derives revenues from the
sale of groceries at retail locations operated by the Company (both the Company’s own stores and stores
licensed by the Company). The Supply chain services reportable segment derives revenues from wholesale
distribution to independently-owned retail food stores, mass merchants and other customers (collectively
referred to as “independent retail customers”) and logistics support services. Substantially all of the Company’s
operations are domestic. Refer to the Consolidated Segment Financial Information set forth in Part II, Item 8
5