Albertsons 2013 Annual Report Download - page 10

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Business 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”).
Substantially all of the Company’s operations are domestic. Refer to the Consolidated Segment Financial
Information set forth in Part II, Item 8 of this Annual Report on Form 10-K for financial information concerning
the Company’s operations by reportable segment.
Retail Food
Prior to the NAI Banner Sale, the Company conducted its Retail Food operations through a total of 1,065 stores.
Following the disposition, the Company conducts its Retail Food continuing operations through a total of 191
stores located throughout the United States. The Company’s Retail Food operations following the NAI Banner
Sale are supplied by one dedicated distribution center 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‘s Retail Food stores range in size from approximately 40,000 to 60,000 square feet. Following the
NAI Banner Sale, the Company operates its Retail Food operations under the Cub Foods, Farm Fresh,
Hornbacher’s, Shop ’n Save, and Shoppers Food & Pharmacy banners. All of the Company’s retail banners have
strong local and regional brand recognition in the markets in which they operate. The 44 Cub Foods stores,
including 17 franchised stores, operate primarily in the Minneapolis/St. Paul market, the 43 Farm Fresh stores
operate in the Virginia Beach, Virginia market, the 6 Hornbacher’s stores operate in the Fargo, North Dakota
market, the 42 Shop ‘n Save stores operate in the St. Louis market, and the 56 Shoppers Food & Pharmacy stores
operate in the Washington D.C. and Baltimore market. The Company’s 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.
Prior to the NAI Banner Sale, the Company also operated under the Acme, Albertsons, Jewel-Osco, Lucky,
Shaw’s and Star Market banners, and related Osco and Sav-on in-store pharmacies. Subsequent to February 23,
2013, the Company sold 874 Retail Food stores previously operated by the Company in conjunction with the
NAI Banner Sale and which are reported as discontinued operations for all periods presented in this Annual
Report on Form 10-K.
Save-A-Lot
The Company conducts its Save-A-Lot operations through a total of 1,331 stores under the Save-A-Lot banner,
including 950 licensed Save-A-Lot stores, located throughout the United States. The Company’s Save-A-Lot
operations are supplied by 16 dedicated distribution centers providing wholesale distribution to the Company’s
own stores and licensed stores. The Company owns 381 Save-A-Lot stores and licenses an additional 950 Save-
A-Lot stores to independent operators. Save-A-Lot is the nation’s largest hard discount grocery retailer by store
count. Save-A-Lot stores are typically about 15,000 square feet in size and carry a specific assortment of high
volume appropriately sized items largely focused on private label products. During fiscal 2013, the Company
added 69 Save-A-Lot stores through new store development and closed 70 Save-A-Lot stores, including
previously announced closures of 22 stores.
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 43 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 440 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.
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