Albertsons 2015 Annual Report Download - page 10

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8
The Company's Save-A-Lot network spans 38 states and is the primary grocery supplier to its licensed stores. Licensee
operators are obligated to purchase the preponderance of their goods from the Company. Save-A-Lot's 17 dedicated distribution
centers provide wholesale distribution to the Company’s own stores and licensed Save-A-Lot stores. Wholesale distribution
sales to Save-A-Lot corporate-operated stores are eliminated within the Save-A-Lot segment. Distribution to stores are made
from the Company’s distribution centers by Company-owned trucks, third-party independent trucking companies or customer-
owned trucks.
Retail Food
The Company conducts its Retail Food operations through a total of 194 stores primarily organized under five regionally-based
retail banners of Cub Foods, Shoppers Food & Pharmacy, Shop 'n Save, Farm Fresh and Hornbacher’s, plus two Rainbow
stores. Retail Food stores provide an extensive grocery offering and, depending on size, a variety of additional products,
including general merchandise, home, health and beauty care, and pharmacy, including national and regional brands, and the
Company’s own private label products. A typical Retail Food store carries approximately 14,000 to 21,000 core SKUs,
depending on the retail banner, and ranges in size from approximately 40,000 to 60,000 square feet, again varying by banner.
The Company’s Retail Food operations 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.
All of the Company's Retail Food banners have strong local and regional brand recognition in the markets in which they
operate. The Company's 49 wholly and majority owned Cub Foods stores and two Rainbow stores operate primarily in the
Minneapolis / St. Paul market; the Company's 54 Shoppers Food & Pharmacy stores operate in the Washington D.C. /
Baltimore market; the Company's 42 Shop 'n Save stores operate in the St. Louis market; the Company's 41 Farm Fresh stores
operate in the Virginia Beach, Virginia market; and the Company's six Hornbacher's stores operate in the Fargo, North Dakota
market. In addition, the Company franchises 31 Cub Foods stores in which the Company has no ownership interest or a
minority ownership interest, primarily in the Minneapolis / St. Paul market. The Company has also entered into an agreement to
acquire two stores in the state of Washington that the Company expects to operate as County Market stores.
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 home, health and beauty care, and pharmacy, which are sold
through Company-operated 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 primarily include the product sales of the Company’s own retail stores,
wholesale product sales to stores licensed by the Company and product sales of the Company’s Independent Business segment
to independent retail customers.