Transcript Current Ratio - Marquax Richardson

Supervalu
America’s Neighborhood Grocer
▪ “One of the Largest companies in the United States Grocery Channel” (Annual Report
5).
▪ Retail Food
→”Total of 2,394 traditional and hard-discount retail food stores, located throughout
the United States” (Annual Report 6).
→ “The Company operates 1,114 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” (Annual Report 6).
→ “The Company Owns 381 hard-discount food stores operating under the Save-ALot banner and licenses an additional 899 Save-A-Lot stores to independent
operators” (Annual Report 6).
▪ Supply Chain Services
→ “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”
(Annual Report 6).
→ Serves “as secondary grocery supplier to approximately 800 stores of
independent retail customers.
→ “The network is comprised of 21 distribution facilities, eight of which supply the
Company’s own stores in addition to stores of independent retail customers”
(Annual Report 6).
• 1926- Winston and Newell Company was formed, essentially became the
parent company of what is now Supervalu (Supervalu History).
• 1945- “Winston and Newell institutes its profit-sharing
program”(Supervalu History).
• 1954- “Winston and Newell changes the company name to Super
Valu”(Supervalu History).
• 1966- Estimated Sales exceed $1 Billion for the first time (Supervalu
History).
• 1967- Super Valu common stock is listed on the NYSE (Supervalu History).
• 2002- Advantage Logistics is launched (Supervalu History).
• 2006- “SUPERVALU acquires the premier retail properties of Albertsons”
(Supervalu History).
• 2009- “Craig Herkert is named president and chief executive officer of
SUPERVALU, following nearly a decade of leadership by Jeff Noddle”
(Supervalu History).
• Retail Competition: “Principal competition comes from
traditional grocery retailers, including regional and national
chains and independent food store operators, and nontraditional retailers, such as supercenters, membership
warehouse clubs, specialty supermarkets, drug stores,
discount stores, dollar stores, convenience stores, and
restaurants” (Annual Report 8).
• Supply Chain Competition: “The traditional wholesale
distribution component of the Company’s Supply chain
services business competes directly with a number of
traditional grocery wholesalers” (Annual Report 8).
Supervalu 3 Year Current Ratio
0.92
0.92
0.91
0.91
0.90
0.90
0.89
0.89
0.88
0.88
Current Ratio
2011
0.90
2010
0.89
2009
0.92
Current Ratio: Supervalu vs. Competitors
2.00
1.80
1.60
1.40
1.20
SuperValu
Safeway
1.00
Krogers
0.80
Industry
0.60
0.40
0.20
0.00
2011
Current Ratio’s
2010
2011
2009
2010
2009
Supervalu
0.90
0.89
0.92
Safeway
0.98
0.90
0.88
Krogers
0.94
0.97
0.95
Industry
1.00
1.70
1.90