Albertsons 2015 Annual Report Download - page 2

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Dear SUPERVALU Stockholders,
Fiscal 2015 was a year of solid progress for SUPERVALU as we continued
the transformation that began a year earlier and that continues to evolve
across our three business segments.
One of the key drivers this past year was our decision to strategically
invest in our business, and I am pleased that these investments helped
drive sales and make SUPERVALU a more competitive company. Overall,
fiscal 2015 sales totaled $17.8 billion, including about $310 million from
the 53rd week. Full-year adjusted EBITDA totaled $789 million.(1)
• Save-A-Lot had a strong year, delivering positive network identical
store sales of 5.8%. We made meaningful investments in both pricing
and marketing to better position the Save-A-Lot brand for future growth, and I continue to be
excited about the growth prospects we foresee.
• Independent Business also had a solid year as it continued to attract new customers. One
noteworthy highlight was the first-ever national selling expo we hosted last summer in St. Paul,
Minnesota, an event that was such a success we are planning to host another expo this August.
• Lastly, Retail Food delivered identical store sales of positive 1.0%. ID sales were positive all four
quarters this fiscal year, partly driven by our ramped up store remodel program and an emphasis on
more relevant store merchandising. Combined with investments in price and more focused weekly
promotions, it is quite evident that our stores are more relevant to today’s customers.
Looking ahead, I am optimistic that SUPERVALU can continue the momentum and build on the great
work that has been done over the past two years. In fiscal 2016, our goal is to open up to 100 new
Save-A-Lot stores. Our Independent Business began fiscal 2016 with a new contract to supply select
Haggen stores, a large west coast retailer for whom we will also provide transition services. Retail Food
has plans in place to continue the momentum they have built this past year.
I again want to thank all of our stakeholders for their continued support. Our customers and employees
are energized by the continued transformation taking place in our company, and I look forward to
updating you on our progress during the coming year.
Sam Duncan
Chief Executive Officer and President
(1) Adjusted EBITDA is a non-GAAP measure and excludes certain charges. See pages 39-40 for a reconciliation.