Businessweek

SUPERVALU INC. operates as a wholesale distributor to independent retail customers in the United States. The company also operates regionally-based traditional format grocery banners. Segments The company’s business is classified into three segments: Retail Food, Save-A-Lot, and Independent Business. The Retail Food and Save-A-Lot segments sell groceries at retail locations operated by the company (both the company’s own stores and stores licensed and franchised by the company). The Independent Business segment engages in the wholesale distribution to independently-owned retail food stores, mass merchants and other customers. Retail Food The company conducts its Retail Food operations through a total of 191 stores located throughout the United States. Its retail food stores range in size from approximately 40,000 to 60,000 square feet. The company operates its Retail Food operations under the Cub Foods, Farm Fresh, Hornbacher’s, Shop ’n Save, and Shoppers Food & Pharmacy banners. 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. 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. Independent Business The Independent Business segment primarily provides wholesale distribution of products to independent retailers. Its 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. 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 comprises 18 distribution facilities, 9 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 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. Private-Label Products The company’s private-label products include the premium brand Culinary Circle; first tier brands, including Essential Everyday, Wild Harvest, Flavorite, Richfood, equaline, HomeLife and several others; and the value brand, Shopper’s Value, which offers budget conscious consumers an alternative to national brands. Trademarks The company is the franchisor or licensor of certain service marks, such as CUB FOODS, SAVE-A-LOT, SENTRY, FESTIVAL FOODS, COUNTY MARKET, SHOP ’N SAVE, NEWMARKET, FOODLAND, JUBILEE, SUPERVALU, and SUPERVALU PHARMACIES. In conjunction with its licensing and franchise arrangements, the company maintains wholesale distribution agreements with its licensees and franchisees, primarily under the Save-A-Lot and Cub Foods banners. The company entered into a trademark license agreement with Albertson’s LLC, the purchaser of the non-core supermarket business of Albertsons, under which Albertson’s LLC was allowed to use legacy Albertsons trademarks related to the NAI Banners that the company sold, such as ALBERTSONS, SAV-ON and LUCKY. History SUPERVALU INC. was founded in 1871.