Retail Powerhouse

In a presentation to investors and analysts yesterday, Supervalu chairman/CEO Jeff Noddle said, “We have delivered strong financial performance while transforming the company for the future. We are executing our plans to generate long term profitable growth which includes delivering improved sales, allocating capital to fund our business opportunities, and improving our overall financial condition.”

Noddle also said that the company’s stores that have been remodeled as part of the Premium Fresh & Healthy program are generating good results with healthy sales increases well above overall identical store sales growth. Noddle said, “We are pleased with our early remodel performance and plan to maintain our commitment to the important remodel program, increasing our major remodels in fiscal 2009 to 165 stores, up from fiscal 2008’s 125 store remodels.”

Source: morningnewsbeat.com

Hannaford continues to focus on expanding its in-store pharmacies. Here’s a photo courtesy of Retailpowerhouse.com’s Retailers Photo Gallery

The operating environment for the food retailing industry continues to be characterized by intense price competition, aggressive supercenter expansion, increasing fragmentation of retail formats, entry of non-traditional competitors and market consolidation. Additionally, consumers are increasingly looking to restaurants to fulfill their food product needs. We have developed a strategic plan that we believe is a balanced approach that will enable Kroger to meet the wide-ranging needs and expectations of our customers. However, the nature and extent to which our competitors implement various pricing and promotional activities in response to increasing competition - including our execution of our strategic plan - and our response to these competitive actions, can adversely affect our profitability.

On June 2, 2006 (the “Acquisition Date”), we acquired the premier retail operations of Albertson’s, Inc. (“Albertsons”), adding approximately 1,125 stores to our retail footprint (the “Acquisition”). The Acquisition was a unique strategic opportunity to acquire those assets of Albertsons that we viewed as the most attractive and profitable. The acquired stores give us a strong market presence in many key urban markets with little overlap with our legacy business.

In connection with the Acquisition, we issued approximately 68.5 shares of common stock. We also assumed $6,123 of debt and issued $1,970 of new debt.

As of June 16, 2007, the Company has approximately 200,000 employees, 2,500 owned and licensed stores, 900 in-store pharmacies and 120 fuel centers. The Acquisition has significantly changed the mix of the Company’s segment revenues and operating results for the first quarter of fiscal 2008 compared to the first quarter of fiscal 2007.

As described in Note 1 – The Company and Significant Accounting Policies, no operating results of the Acquired Operations are included in the accompanying Condensed Consolidated Statement of Earnings for the first quarter of fiscal 2007 ended June 17, 2006. See Note 1 – The Company and Significant Accounting Policies for the definition of Acquired Operations and Note 2 – Business Acquisition for disclosure of assets acquired and liabilities assumed in connection with the Acquisition. The Company’s consolidated balance sheet was significantly impacted by the Acquisition.

Ever been to an Aldi store? They are a limited assortment grocery store (only carry about 2,000 SKUs or so)

What is it about their business model that makes them so successful? I want to hear your comments. Once a few are build up, I’ll give you my POV.

What is it about retail, particularly the grocery industry, that makes it so hard (apparently) to executre at a store level?

I’ve actually read several studies that suggest that having more people (i.e., better customer service) yields higher returns for retailers.

Think of Trader Joe’s. Think of Whole Foods. Think of HEB.

Then, why, do a lot of retailers lack the appropiate customer service and are so inefficient at store level execution?

Are they trapped in a vicious cycle?  How, if at all possible, can they get out?

After watching the 60 Minutes interview of Whole Foods CEO John Mackey, it got me into thinking of how much of a contrasting view there is between Mackey and, for the purposes of this example, Albertsons’ former CEO Larry Johnston.

Mackey made $430,000 last year (not counting any stock options) while Albertsons former CEO will pocket more than $100,000,000* in cash, stock, health and other benefits this year. This might be an unfair comparison, given that one takes into account one year’s salary and the other one takes compensation for the sale of the company… However, bear with me while I illustrate my point and get through my idea.

Technorati Tags: Whole Foods, Albertsons, CEO, compensation, retail

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I stumbled upon this site, grocerylists.org, which has a collection of over 1,000 scanned grocery lists that have been either randomly found or submitted to the site.

It’s interesting to see how the author took his initial idea and managed to create a big success out of it, to the point where the author is currently working on writing a book!

Here’s an example of one the lists:

And don’t forget: ‘Heart attack… Check’

Technorati Tags: grocery, Retail, Grocery, Supermarkets, Merchandising

Welcome to RetailPowerhouse.com!

This is the first of what I hope to be many posts. In here you will find comments about the retail industry. A little vague? Probably!

You’ll find me rambling about the retail industry. I’ll comment, speculate, complain and generate ideas as they come. I encourage you to leave me feedback through comments as that’s the only interaction I’ll be getting with my readers for a while.

I hope you enjoy this space and that it keeps you entertained during those long hours at work!
- Retail Powerhouse