Albertsons 2010 Annual Report Download - page 12

of this Annual Report on Form 10-K for financial information concerning the Company’s operations by
reportable segment.
Retail Food
The Company conducts its Retail food operations through a total of 2,349 traditional and hard-discount retail
food stores, including 855 licensed Save-A-Lot stores, located throughout the United States. The Company’s
Retail food operations are supplied by 23 dedicated distribution centers and nine distribution centers that are
part of the Supply chain services segment providing wholesale distribution to both the Company’s own stores
and stores of independent retail customers.
The Company operates 1,161 traditional retail food stores under the Acme, Albertsons, Bristol Farms, Cub
Foods, Farm Fresh, Hornbacher’s, Jewel-Osco, Lucky, Shaw’s, Shop ’n Save, Shoppers Food & Pharmacy and
Star Market banners ranging in size from approximately 40,000 to 60,000 square feet. The Company’s
traditional retail food stores provide an extensive grocery offering and, depending on size, a variety of
additional products including, general merchandise, health and beauty care, pharmacy and fuel.
The Company owns 333 hard-discount food stores operating under the Save-A-Lot banner and licenses an
additional 855 Save-A-Lot stores to independent operators. Save-A-Lot holds the number one market position,
based on revenues, in the hard-discount grocery-retailing sector. Save-A-Lot food stores typically are
approximately 15,000 square feet in size, and stock primarily custom-branded high-volume food items
generally in a single size for each product sold.
Supply Chain Services
The Company’s Supply chain services business primarily provides wholesale distribution of products to
independent retailers and is the largest public company food wholesaler in the nation. The Company’s Supply
chain services network spans 49 states and serves as primary grocery supplier to approximately 1,940 stores of
independent retail customers, in addition to the Company’s own stores, as well as serving as secondary grocery
supplier to approximately 550 stores of independent retail customers. The Company’s wholesale distribution
customers include single and multiple grocery store independent operators, regional and national chains, mass
merchants and the military.
The Company has established a network of strategically located distribution centers utilizing a multi-tiered logistics
system. The network includes facilities that carry slow turn or fast turn groceries, perishables, general merchandise
and health and beauty care products. The network is comprised of 21 distribution facilities, nine of which supply
the Company’s own stores in addition to stores of independent retail customers. Deliveries to retail stores are made
from the Company’s distribution centers by Company-owned trucks, third-party independent trucking companies or
customer-owned trucks. In addition, the Company provides certain facilitative services between its independent
retailers and vendors related to products that are delivered directly by suppliers to retail stores under programs
established by the Company. These services include sourcing, invoicing and payment services.
The Company also offers third-party logistics solutions through its subsidiary, Total Logistics, Inc. and its
Advantage Logistics operations. These operations provide customers with a suite of logistics services,
including warehouse management, transportation, procurement, contract manufacturing and logistics engineer-
ing and management services.
Products
The Company offers a wide variety of nationally advertised brand name and private-label products, primarily
including grocery (both perishable and nonperishable), general merchandise and health and beauty care,
pharmacy and fuel, which are sold through the Company’s own and licensed retail food stores to shoppers and
through its Supply chain services business to independent retail customers. The Company believes that it has
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