Albertsons 2011 Annual Report Download - page 10

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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 2,394 traditional and hard-discount retail
food stores, including 899 licensed Save-A-Lot stores, located throughout the United States. The Company’s
Retail food operations are supplied by 22 dedicated distribution centers and eight 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 1,114 traditional retail food stores under the Acme, Albertsons, 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 381 hard-discount food stores operating under the Save-A-Lot banner and licenses an
additional 899 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 47 states and serves as primary grocery supplier to approximately 1,900 stores of
independent retail customers, in addition to the Company’s own stores, as well as serving as secondary grocery
supplier to approximately 800 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, eight
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.
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
adequate and alternative sources of supply for most of its purchased products. The Company’s Net sales
include the product sales of the Company’s own stores, product sales to stores licensed by the Company and
product sales of the Company’s Supply chain services business to independent retail customers.
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