Uploaded byAlbertson's LLC
Albertsons & NAI Vendor meeting presentation 4 17 13
This document summarizes a vendor presentation given by Albertson's. It outlines Albertson's mission, vision, and core values which center around pleasing customers, creating opportunities for associates, and achieving financial success. It then describes Albertson's commercial organization structure and distribution centers across its 1063 stores nationwide. Finally, it discusses Albertson's merchandising and marketing business model which focuses on driving funds to cost of goods to enable effective promotions and selling their way to success through a decentralized approach with national support.
Albertsons & NAI Vendor meeting presentation 4 17 13
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- 2. Mission, Vision andCore 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'sLLC 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 NewCompany 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 thisdeal 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
- 6. MERCHANDISING AND MARKETING BUSINESSMODEL Mike Massimino 6
- 7. Decentralized • Division Marketingand 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 • CenterStore 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 • Maximizesales 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, DigitalMarketing & 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
- 12. 500,000+ 1.8 MM/mo170,000 3.2 MM The Power of One…
- 13. One Company toEngage them ALL
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- 15. HOW ARE WEGOING TO SELL MORE STUFF? Mike Massimino 15
- 16. − Fall bakingand 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 mirrorsthe 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 BeforeNow 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. Weare 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