Albertsons 2012 Annual Report Download - page 4

Download and view the complete annual report

Please find page 4 of the 2012 Albertsons annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

this 62-store grocer. We also expanded our relationship with Western Beef and now supply their
27 stores in the New York metropolitan market.
xImproved Expense Structure. We permanently removed $165 million in costs across the
organization, bringing our savings total to $340 million since the end of fiscal 2010. By
generating efficiencies and simplifying how we are organized to support our business, we enter
the new fiscal year as a leaner, more competitive organization.
xContinued Debt Pay Down. Total outstanding debt was reduced by approximately $500 million
in fiscal 2012. This year, we completed an amendment to our senior credit facilities allowing for
the extension of the Term B-1 loan, and we also extended our securitized accounts receivable
facility out to November 2014. Since June of 2006, SUPERVALU has reduced total debt by
more than $3.2 billion and remains in compliance with all debt covenants.
xAdvanced Sustainability Efforts. SUPERVALU’s sustainability programs not only help the
environment, they also contribute favorably to our bottom line. Two of our stores were the first in
the country to achieve a zero waste classification and, in all, 54 SUPERVALU stores achieved
this designation during the fiscal year. In fiscal 2012, we also joined the U.S. Department of
Energy’s Better Buildings Challenge, a program that challenges building operators to improve
energy efficiency by 20 percent by 2020.
As our transformation progresses into its second year, we will focus on three priorities:
1. Improving our value proposition;
2. Bringing an even greater hyperlocal experience to the neighborhoods we serve; and,
3. Driving long-term growth.
Fiscal 2013 will bring a more intense focus on working toward “Fair Price Plus Promotion,” as we layer
deeper investments across items, categories and targeted markets. We will continue to remove price as a
barrier to shopping our stores, while also highlighting our service, quality assortment and convenient
neighborhood locations.
I am encouraged by the evolution that has begun at SUPERVALU and the momentum we have gained.
While our journey is far from over, we remain committed to executing on our business transformation
plan. Our continued success lies in the dedication and engagement of our 130,000 associates. I am
pleased with the progress we have made toward becoming America’s Neighborhood Grocer and
believe in our “8 Plays to Win” strategy, which is designed to both restore earnings growth for
the Company and deliver value to our shareholders.
Craig R. Herkert
Chief Executive Officer & President