2. Mission, Vision and Core Values
Create a shopping experience that pleases our
customers, a workplace that creates opportunities, a
great working environment for our associates, and a
business that achieves financial success.
MISSION
VISION
•Customer Focus
•Dedication to Success
•Honesty
•Collaboration
•Mutual Respect
•Work-Life Balance
•CitizenshipCORE
VALUES
To be known as the favorite neighborhood food and
drug retailer in every market where we do business,
with helpful associates, competitive prices, and high
quality fresh products.
2
3. Commercial Organization Structure
Albertson's LLC NAI
Bob Miller
CEO
Justin Dye
COO
Bob Butler
COO
Shane Dorcheus
President,
Southwest Division
Mike Withers
President,
Southern Division
Dennis Bassler
President,
Northwest Division
Susan Morris
President,
Intermountain Division
Wayne
Denningham
President, Southern
California Division
Corporate
Marketing
Amy Kirby
Retail
Distribution and
Procurement
Rick Bunnell
Corporate
Merchandising
Mike Massimino
Jim Perkins
President, ACME
Shane Sampson
President, Shaw’s
Dan Salemi
President,
Pharmacy
William Emmons
President,
Jewel-Osco
AB Acquisition LLC
TSA
Pharmacy
TSA*
*Will also provide pharmacy TSA services to SVU
Corporate
Services
3
4. Distribution Centers
Our New Company Footprint – National Scope
Ponca City
Phoenix
Northwest
Intermountain
SoCal
Southwest
Southern
Jewel
Acme
Shaw’s/Star Markets
Brea
Irvine
Salt Lake
Portland
Boise
Melrose
Lancaster
Methuen
Wells
Las Vegas
192
43
65
3
31
10
6
22
35
42
30
64
1
19
1
173
4
4
47
22
19
5 12
49
33
10
84
30
8
1
4
1063 Stores
12 Distribution Centers
~110,000 Associates
5. How is this deal different?
2006 This Deal
• Neglected assets
• Bloated gross margins
• Quality assets
• Impaired price image
Distressed business
requiring considerable
paring, price investment,
capital improvements,
and training
Business of talented and
energetic associates
requiring investment in
price, product quality,
and customer service
5
7. Decentralized
• Division Marketing and Advertising
• Grocery Merchandising
• Liquor Merchandising
• All Fresh Merchandising
− Meat - Butcher Blocks - Meat Deli
− Produce, Fresh Cut, and Floral
− Service Deli and Bakery
• Pharmacy Operations
7
8. National Support
• Center Store and Fresh Merchandising
• Advise and consult; and develop national programs
• National Marketing
• Digital Marketing and Social Media
• Private Label Management
• Via a service agreement with Supervalu
• Pharmacy Marketing, Merchandising & Procurement
• Health & Beauty Care / General Merchandise
• Seasonal Merchandise - Import and Domestic
• Boise Team for all Albertson’s, Jewel, Acme and Shaw’s
8
9. Business Model Principles
1. We are a CASH business focused on sales
2. We drive funds to Cost of Goods to enable
effective promotions
− Increases traffic, basket size, and turns
− Provides exit strategy and sell-through
3. We sell our way to success.
9
10. Funding Preferences
• Maximize sales
performance
• Forecast for sell-
through at DC
and Store
• Exit strategy for
every case
shipped with the
ability to hold
TPR in store for
sell-through
ITEM/
CATEGORY
SPECIFIC
NET
PROGRAM
(EDLC OR
MODIFIED)
COLLABORATEPREFERENCE #3
DEDUCT
WEEKLY
WAREHOUSE
WITHDRAWS
PREFERENCE #2 WE WILL
PASS
ALLOWANCE
THROUGH TO
STORES
CASH OFF
INVOICE
PREFERENCE #1 WE WILL
10
11. National Marketing, Digital Marketing & Social Media
• New National Marketing Team
• 12 Major Markets – Distribute 37 Million Flyers weekly
• Develop fully integrated national marketing programs
• Support local marketing, advertising, and digital efforts
• Leverage size in planning and procuring media tactics
• Collaborate to effectively execute your Marketing
Programs in our stores
• Leverage www. / Facebook / mobile technologies
collaboratively with your brands in our divisions
11
15. HOW ARE WE GOING TO SELL
MORE STUFF?
Mike Massimino
15
16. − Fall baking and cooking
− Prepare for the holidays
− All 8 divisions
− Private Label Sale
− Monopoly - June 17-20
− All 8 divisions
National Events and National Scope
− Anniversary Sale in
Albertson’s Divisions
− Back-to-School Sale in
Jewel, Acme, & Shaw’s
− Loyalty – collect and
save events
− Customer Count – traffic
building events
Spring Events Summer Events
Stock Up Sale Continuity Programs
1 2
3 4
We will consider all of your national promotions!
16
17. Local Division Ownership
• Closer to the customer
−Local assortment
−Pricing – base and promotion
−Merchandising - placement set locally
• Quicker, easier, better
−Accessible Sales Managers & Buyers
−Fast attacks, smaller markets, tests,
−Local DC in most divisions
−Decisions made locally in each market
17
18. Execution
• Store mirrors the promotional plan
• Quality Fresh Products
• Well stocked aisles and displays
• Service areas staffed to maximize sales
• Department “ops specialist” in each district
• Legendary Customer Service
• Clean and bright stores
18
19. Points of Difference
Before Now
Shrink Sales
Centralized Decentralized
Slow – sluggish Fast - nimble
Complicated Simple
Scan Off Invoice
No one to talk to Accessible
High priced Competitive
19
20. Key Takeaways
1. We are ONE COMPANY focused on sales
2. We are dedicated to our customers, vendors, and
associates
3. Our divisions own their business
4. We operate on a cash model
5. We leverage our national scope when it is
advantageous for us and our vendors
6. We execute our commitments
7. We keep things simple
8. We are committed to optimizing speed to shelf
20
