Albertsons 2011 Annual Report Download - page 9

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PA RT 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 7075 Flying Cloud Drive, 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 several banner names that have strong local ties and brand recognition. 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, 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, 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 store remodels and new store
development in the hard-discount format. During fiscal 2011, the Company added 132 new stores through new
store development and closed or sold 87 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