Albertsons 2012 Annual Report Download - page 11

Retail Food
The Company conducts its Retail food operations through a total of 2,434 traditional and hard-discount retail
food stores, including 935 licensed Save-A-Lot stores, located throughout the United States. The Company’s
Retail food operations are supplied by 22 dedicated distribution centers and nine distribution centers that are part
of the Independent business segment providing wholesale distribution to both the Company’s own stores and
stores of independent retail customers.
The Company operates 1,102 traditional retail food stores which range in size from approximately 40,000 to
60,000 square feet and operate 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 which have strong local and
regional brand recognition in the markets in which they operate. 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, and pharmacy.
The Company owns 397 hard-discount food stores operating under the Save-A-Lot banner and licenses an
additional 935 Save-A-Lot stores to independent operators. Save-A-Lot is one of the leading retailers in the U.S.
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.
Independent Business
The Company’s Independent business segment primarily provides wholesale distribution of products to
independent retailers and is the largest public company food wholesaler in the nation. The Company’s
Independent business 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 760 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 22 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.
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, and
pharmacy, which are sold through the Company’s own and licensed retail food stores to shoppers and through its
Independent business segment 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 Independent business segment to independent retail customers.
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