Albertsons 2013 Annual Report Download - page 11

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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 18 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 retail customers 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 owned and licensed Retail Food and Save-A-Lot 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.
The following table provides additional detail on the percentage of Net sales for each group of similar products
sold in the Retail Food, Save-A-Lot and Independent Business segments for continuing operations:
2013 2012 2011
Retail Food:
Nonperishable grocery products (1) 16% 17% 17%
Perishable grocery products (2) 888
Pharmacy products 3 3 3
Fuel — 1 1
27 29 29
Save-A-Lot:
Nonperishable grocery products (1) 17 17 15
Perishable grocery products (2) 877
25 24 22
Independent Business:
Product sales to independent retail customers 48 47 49
Net sales 100% 100% 100%
(1) Includes such items as dry goods, general merchandise, health and beauty care, beverages, dairy, frozen
foods and candy
(2) Includes such items as meat, produce, deli and bakery
9