Magally Melendez
Business Plan
Albertsons Companies Inc.
250 Parkcenter Boulevard, Boise ID 83706
208-395-6200
1/22/2021
Bob Miller, Chairman
Vivek Sankaran, President & CEO
This document is confidential.
Table of Contents
Table of Contents ................................................................................................................ 2
Executive Summary ............................................................................................................ 3
Vision/Mission Statement and Goals .................................................................................. 4
A. Vision Statement ........................................................................................................ 4
B. Goals and Objectives .................................................................................................. 4
C. Keys to Success .......................................................................................................... 4
Company Summary ............................................................................................................ 5
A. Company Background................................................................................................ 5
B. Resources, Facilities and Equipment ......................................................................... 5
C. Marketing Methods .................................................................................................... 6
D. Management and Organization .................................................................................. 6
E. Ownership Structure ................................................................................................... 8
F. Social Responsibility………………………………………………………………...6
G. Internal Analysis ........................................................................................................ 9
Products and/or Services ....................................................Error! Bookmark not defined.
Market Assessment ............................................................Error! Bookmark not defined.
A. External Analysis ......................................................Error! Bookmark not defined.
B. Customers ..................................................................Error! Bookmark not defined.
C. Industry Analysis…………………………………………………………………….8
D. Strategic Alternatives ................................................Error! Bookmark not defined.
Strategic Implementation ...................................................Error! Bookmark not defined.
A. Production…………………………………………………………………………...9
B. Resource Needs……………………………………………………………………...9
C. Sourcing/Procurement Strategy……………………………………………………...9
D. Marketing Strategy…………………………………………………………………..9
E. Performance Standards……………………………………………………………..10
Financial Plan.....................................................................Error! Bookmark not defined.
A. Financial Projections .................................................Error! Bookmark not defined.
B. Contingency Plan ......................................................Error! Bookmark not defined.
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Executive Summary
This section is a summary of the information from the pages that follow. Prepare it last,
after the business plan has been written. It should not exceed two pages. Headings to use
in the Executive Summary:
A. Vision/Mission Statement
B. Company Summary
C. Products/Services
D. Market Assessment
E. Strategic Implementation
F. Expected Outcomes
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Vision/Mission Statement and Goals
A. Vision Statement
Albertsons is a unified team of energized associates obsessed with creating the world's
number one food and drug retailer in the areas of market value, scale, profitability,
customer service and associate satisfaction. This corporate vision reflects Albertsons
well-placed plans to implement changes in the business world and to improve it as a
whole. Albertsons vision is to become the top player in the retail and pharmaceutical
industry. We will deliver operational excellence in every corner of the Company and
meet or exceed our commitments to the many constituencies we serve.
B. Goals and Objectives
Albertsons goal is to create a shopping experience that pleases customers: a workplace
that creates opportunities and a great working environment for our associates; and a
business that achieves financial success. Albertsons moves around long-term strategies
and short-term actions molded by a set of core values that are shared by each and every
associate. The emphasis of how to achieve this goal is to have good interpersonal
relationships with its customers.
C. Keys to Success
At Albertsons treating people right is the key to success. Once you realize what people
are looking for, you must concentrate on giving the customers what they want.
Personalization and innovation of Albertson brands are also the pillar of success.
Albertson prides itself on making our brand special, with the customer in mind. Having
no push back from customers who try our brand is our biggest reward. Store brand
products are not exclusive to one product, but we offer store brand options to almost
every brand item on your grocery list. The implementation of SmartLabel is welcome by
loyal customers who make healthy decisions on a daily basis. They are now able to track
ingredients, information and country or origin by scanning our products and having it
ready at the palm of their hand when the scan links them to our website. When customers
believe in our brands, we succeed. In addition, we offer the best possible employee
package for our employees, including medical coverage available for their whole
household. In treating our employees with respect and appreciation we achieve a better
level of customer service in return for all customers.
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Company Summary
A. Company Background
Albertsons Companies is one of the largest food and drug retail companies in the United
States. Albertsons Companies runs more than 2,300 food and drug stores in 35 states
with the help of nearly 270,000 employees.
Joe Albertson studied business and worked as a clerk at a local Safeway grocery store
where he quickly moved up the ranks and was the supervisor for twelve stores. This led
to his urge to open his own store where he could set his own standards and manage it in a
more efficient way. With $5,000 that he saved with his wife, and $7,500 borrowed from a
family member, granted Albertson the opportunity to open his first store at the age of 32
in Boise, Idaho.
At the time, his store was the largest food store. Due to the success of the company, Joe
was able to invest in opening three more groceries stores in less than two years. Even
after World War II, the company continued to grow, opening its 100th store in 1964.
Adding a combination of food/drug stores cemented the company.
B. Resources, Facilities and Equipment
Albertsons Companies is one of the biggest supermarket retailer in the US. The company
has their own brands of grocery items that offer cheaper prices for the same brand name
items, while maintaining the same quality of the products. Those include health and
beauty products, coffee, fresh produce, meat and ice cream which are sold under the
name Essential Everyday and Signature, along with its own name brands.
Albertson Companies supermarket are over 50,000 square feet buildings. The buildings
house the grocery stores, along with drug stores that make Albertsons Companies the
second largest drug store in the US. Albertson Companies supermarkets offer full bakery
service, deli, meat and seafood counter service, and full line of produce. Some of the
grocery buildings offer fuel adjacent provided by Albertsons Companies. Albertsons
Companies own 23 distribution centers and 20 food and beverage plants.
Albertsons Companies financials are better than ever since we also offer in-store banks
with services offered by the bank itself. In addition, the more modern stores offer fresh
hot food, and even Starbucks if you are lucky. Albertsons Companies has an average of
27% gross profit margin. Albertsons Companies 2019 sales were $62.5 billion with a Net
Income of $464 million.
Our company employees close to 230,000 people in the US. Employees have the benefit
of using Direct2hr, an employee portal. The portal offers easy access for employees to
their paycheck, personal information and benefits as well.
Albertsons Companies has partnered with Microsoft Corporation as a service provider.
Using Microsoft Azure will provide the companies to digitally transform customer
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service and deliver better products and services. TouchFuel using Microsoft Azure is
already up and running and averages 90 seconds to fuel up.
C. Marketing Methods
Albertsons Companies 2019 sales were $62.5 billion with a Net Income of $464 million,
selling a total of 3.7 trillion units. At our company, we use different resources to
maximize income revenue. We offer fuel stations with a rewards program. Customers
can save up to $1 a gallon at Exxon and Mobil stations. Our pharmacy rewards programs
allow you to redeem for discount on gas or groceries. At Albertsons you can manage your
pets prescriptions through our pharmacy as well. Our rewards program benefits everyone
that shops for food, gas or prescriptions the same. Albertsons Companies to not use
forward contracting, or futures.
Albertsons Companies have shifted from in-house deliveries to third party delivery apps.
This contract and partnership is for the benefit of all our customers. This decision is made
to provide our customers with an ampler and faster system to obtain groceries from our
stores.
D. Management and Organization
Our proud leadership team led by Vivek Sankaran, President & Chief Executive Officer;
who joined from PepsiCo and has served many Fortune 100 companies, he has an MBA
from the University of Michigan a master's degree in manufacturing from Georgia
Institute of Technology and a bachelor's degree in mechanical engineering from the
Indian Institute of Technology in Chennai.
Anuj Dhanda, Executive Vice President & Chief Information Officer; who graduated
from the University of Delhi with a degree in Commerce and received his MBA and
Ph.D. in Finance from Rutgers University. He began his career as a consultant and has
worked with major financial companies including PNC Financial Services Group where
he rose to the position of Executive Vice President and Chief Information Officer.
Dhanda brings extensive background in merger integration, digital marketing and
commerce, systems modernization, and data security.
Bob Dimond, Executive Vice President & Chief Financial Officer; Bob Dimond has over
25 years of financial and senior executive management experience in the retail food and
distribution industry. He has served as Chief Financial Officer and Treasurer at Nash
Finch and Wild Oats. Earlier in his career he was Vice President, Administration and
Controller for Smith’s Food and Drug Centers. He earned his BS degree in accounting
from the University of Utah and is a Certified Public Accountant.
Shane Dorcheus is Executive Vice President & Retail Operations; he joined Albertsons in
1980 as courtesy clerk. He has served in various management positions throughout the
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organization, including Store Director, District Manager, Director of Operations, Vice
President of Operations, and Division Vice President
Mike Theilmann is Executive Vice President and Chief Human Resources Offier; Mike
serves on the board of two venture-backed technology companies; Catapult Health and
Leapyear Technologies. He also serves on the board of Network of Executive Women. A
graduate of Gustavus Adolphus College, Mike also holds an MS in Physics from the
University of Nebraska. His experience brings working with clients to ensure that HR
leaders and their teams were equipped with the right qualifications to lead and manage in
this rapidly changing global environment.
Geoff White is Executive Vice President and Chief Merchandising Officer; Geoff began
his career with the company as a general clerk in 1981. He eventually became director of
Canadian produce operations for 210 stores. He held leadership roles in produce, dairy,
frozen, deli/food service, produce, floral, and branded concepts at the Safeway corporate
office from 2004 to 2015. In 2015, he was named senior vice president of marketing and
merchandising for the Northern California Division, and in 2017, he was appointed
president of the company’s Own Brands team.
Andrew Whelan is Albertsons Companies spokesperson, our Director, Corporate
Communications.
Albertsons Companies also have a great Division Leadership Team that covers all
different regions of the US.
Our leadership team brings all the experience necessary to make us a successful
company. The members of our team count on each other for advice and support, as well
as providing avenues for personal development to employees that account for opportunity
to rise within the company.
Vivek Sankaran,
PRESIDENT & CEO
⇓
EXECUTIVE VICE
PRESIDENTS
⇓
DIVISION
LEADERSHIP
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E. Ownership Structure
Albertsons is owned by an investment group led by private equity firm Cerberus Capital
Management. In 2020 Albertsons Companies made our debut as a public company, with
shares trading on the New York Stock Exchange as ACI.
Albertsons Companies, Inc. is a legal corporation that operates in the retail and grocery
industry since 1939 with a federal tax ID number in the state of Idaho. Companies
operate with a resale license to be able to purchase and resell without paying sales taxes
on those purchases. Albertsons Companies Inc. holds a control substance license to
operate our pharmacies. Albertsons Companies holds a liquor license required to sell
alcohol, as well as a tobacco license. Our Commercial Activity License is filed with the
city. All codes are followed set forth by the Health Department for all serving and
handling of foods and perishables. Certificate of occupancy are clearly displayed in all
stores as per state laws. Inspections are done in a monthly basis, as per the requirement of
our CEO, to ascertain that all codes and rules are followed to ensure the safety of all our
customers and employees alike.
F. Social Responsibility
At Albertsons Companies we pride ourselves as minimizing our impact to the planet. In
doing so we have pledge to recycle, with a promise that our Own Brands packaging will
be 100% recyclable, reusable or compostable by 2025. So far have recycled more than 25
million pounds of plastic film and 780 million pounds of cardboard from our facilities.
We have also completed 1,400 plus energy efficiency projects in our stores and
warehouses. As part of our environmental friendly guide, we have taken measures to
eliminate chemicals from packaging and reporting progress along the way. These include
elimination of PFAS coating from bakery and prepared food packaging.
Albertsons prides itself of a community partnership that works. In assisting with
community cleanups, we also take safety very seriously. Any community concern is
readily addressed as the community is our business. Albertsons Companies has donated
more than $265 million in food to food banks, pantries and other agencies to fight hunger
in America. Hunger Is, a charitable campaign has raised more than $23 million to
provide healthful breakfasts for children, more than 50 million breakfasts a year have
been provided. Another area of giving and outreach has been the Disaster Relief. In
2017 alone Albertsons Companies raised more than $17 million in aid alone, plus food
and supplies to assist first responders in affected neighborhoods. Our organization is
always looking for ways to nourish our neighbors and offers grants to community based
companies as well as provide resources for the neighborhood to secure funding.
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Albertsons Companies employees have a buddy system when training. This allows for a
uniform customer services along all stores. We also offer the opportunity for
management training, which is after all, how some executive personnel were able to
climb the ladder to where they lead today. Our company trains our employees to handle
properly, everyday items like bleach, florescent bulbs, aerosol cans, batteries and expired
pharmaceuticals that can be considered dangerous. We use a resource from
the Environmental Protection Agency (EPA) outlines the intricacies of hazardous waste
management in six steps: Identify, Count, Notify, Manage, Transport, and Recycle, Treat,
and Dispose. When it comes to the proper disposal of unsafe contaminants, customer and
employee safety are top priorities for food retailers. For this reason, we have a strenuous
control to properly dispose of pharmaceuticals, batteries, pool chemicals and aerosol
sprays by contracting special companies to handle the disposal.
G.IInternal Analysis
One of the greatest strengths of Albertsons Companies, Inc. is being known for the
largest and fine food available in the market. Our stores are favorite neighborhood food
and drug retailers in every market. The Preferred Savings cards offered in our stores help
in saving for customers that they surely appreciate. At Albertsons Companies, being up to
date on technology is a priority, therefore we pride in providing a way to our customers
to know their nutrition iQ. Our company has a strong 270,000 employee count, that enjoy
great benefits and resources. Our stores, brands and partnerships allow us to fulfill every
customer’s needs by supplying: bakery, dairy, deli, frozen foods, general grocery, meat,
pharmacy, produce, seafood, snacks, and liquor.
At Albertsons Companies, we have found that what we do best than our competitors is
giving the customer the merchandise they want, at a price they can afford, complete with
lots of tender, loving care. Nobody can beat that. At Albertsons we believe that can
improve and cap tap into other markets, as well as doing direct procurement to eliminate
middle man. Also, more acquisitions can be made to become the number one in retail
nationwide.
There is high competition due to many players, and we are aware that online stores may
take over. Therefore, we strive to advance and incorporate technology that can not only
keep us at the top but boost our sales even further. Productivity always has ways to be
tweaked so that it is measured according to the needs of the customers and the current
financial crisis or boom the nation is experiencing, for this reason it is always important
to remain up to date, and ensure our employees the best working conditions available.
With the help of our dedicated employees and strategic locations, we can achieve a
lasting success. In the long run, we aim to compete with major retailers and conquer the
market by offering customers all they need to make Albertsons Companies, Inc. a onestop buy it all for our customers. At the same time having employees feel like the belong
to a great family, and know that they will be taken care of, so that they in return give their
best and care for the future of our company.
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