Profile: SUPERVALU Inc (SVU.N)

SUPERVALU INC. (SUPERVALU) is a United States grocery channel. It operates in two segments: Retail food and Independent business. The Company leverages its distribution operations by providing wholesale distribution and logistics and service solutions to its independent retail customers through its Independent business segment. The Retail food segment derives revenues from the sale of groceries at retail locations operated by the Company, and the Independent business segment derives revenues from wholesale distribution to independently-owned retail food stores and other customers. During the fiscal year ended February 25, 2012, the Company added 83 new stores through new store development and closed or sold 43 stores, including planned disposals. In February 2012, the Company’s wholly owned subsidiary, Save-A-Lot, opened stores in 2327 Seminary St., Auburn and 3 Geddes St., Holley.

Retail Food

The Company conducts its Retail food operations through a total of 2,434 traditional and hard-discount retail food stores, including 935 licensed Save-A-Lot stores, located throughout the United States. The Company’s Retail food operations are supplied by 22 distribution centers 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 operates 1,102 traditional retail food stores under the Acme, Albertsons, Cub Foods, Farm Fresh, Hornbacher’s, Jewel-Osco, Lucky, Shaw’s, Shop ’n Save, Shoppers Food & Pharmacy and Star Market banners ranging in size from approximately 40,000 to 60,000 square feet. The Company’s traditional retail food stores provide a grocery offering and, depending on size, a variety of additional products, including, general merchandise, health and beauty care, pharmacy and fuel. The Company owns 397 hard-discount food stores operating under the Save-A-Lot banner and licenses an additional 935 Save-A-Lot stores to independent operators. Save-A-Lot food stores typically are approximately 15,000 square feet in size, and stock primarily custom-branded food items generally in a single size for each product sold.

Independent Business

The Company’s Independent business segment primarily provides wholesale distribution of products to independent retailers and is a company food wholesaler. The Company’s Independent business network spans 47 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 760 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 network of distribution centers is comprised of 22 distribution facilities, nine of which supply the Company’s own stores in addition to stores of independent retail customers. In addition, the Company provides certain facilitative services between its independent retailers 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. 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, pharmacy and fuel, which are sold through the Company’s own and licensed retail food stores to shoppers and through its Independent business segment business to independent retail customers.