Darnell Allen Vice President, Diversity and Inclusion SUPERVALU SUPERVALU Diversity & Inclusion Overview 1 About SUPERVALU Fortune 50 company Fortune “Most Admired” company Third-largest grocery company in the United States 135 years of industry experience Acquisition of premier retail properties from Albertson’s Inc. on June 2, 2006 2 Grocery Retail and Supply Chain Leadership A legacy of service and innovation with 36 distribution centers delivering best-in-class supply chain services Unique blend of retail formats and capabilities in geographically and demographically diverse markets Supply Chain Services Grocery Retail 3 Focus on the Future The industry was evolving Consolidation Entry of mass and niche retailers SUPERVALU had a long-term plan to grow retail presence through acquisition September 2005: The game changes Albertson’s Inc. announces decision to sell assets We had the opportunity to change the face of SUPERVALU and the grocery landscape 4 June 2, 2006: A Monumental Date Acquired more than 1,100 premier retail properties Acme Top U.S. Grocery Companies Based on Total Sales* Bristol Farms Company Sales Jewel-Osco Wal-Mart Stores $ 317.3 Kroger Co. $ 59.9 Shaw’s and Star Markets The New SUPERVALU $ 44.0** Albertsons $ 41.3 Safeway $ 38.6 Ahold USA Retail $ 22.6 Publix Super Markets $ 20.1 SUPERVALU $ 19.9 Delhaize America $ 16.6 Albertsons in Idaho, Utah, Nevada, Southern California Sav-On and Osco in-store pharmacies * Supermarket News “Top 75” Grocery Retail, January 2006. **estimated 5 A Transformed Retail Powerhouse with Excellent Future Growth Potential 6 Jeff Noddle Chairman & CEO, SUPERVALU “We know that driving towards deepening our understanding of diversity every day is vital to continuing to serve our customers and our associates better than anyone else can.” 7 Diversity and Inclusion ~ Mission Statement Our diversity and inclusion strategies and initiatives will always… Meet our customer needs better than anyone else, coast-to- coast and border-to-border Improve performance and profitability to be the best place to invest in our industry Build an energetic and productive environment where diverse associates, customers and vendors are treated with courtesy, dignity and respect Leverage talent and resources to be the best place to work in our industry 8 The Four Pillars of Diversity and Inclusion Managing Our Diverse Workforce Understanding Differences External Marketplace Diversity Representation 9 Recognition 2007 Supermarket News Champion of Diversity 100% on 2008 and 2009 Human Rights Campaign Corporate Equality Index 2008 Twin Cities PRIDE Corporate Achievement Award Progressive Grocer recognized five of our women leaders 10 Employee Resource Groups What are Employee Resource Groups? Groups of associates who participate in initiatives and activities with others of a similar race, ethnicity, gender or common interest Benefits of Business Resource Groups Foster diversity and inclusiveness within the company Recruit and retain diverse associates through mentoring Support and participate in community events Assist with marketing activities to drive shareholder value 11 Offer valuable viewpoints on company projects & policies What is in a Name? Employee Resource Group Employee Network Group Affinity Group At SUPERVALU, Affinity Groups evolved to Business Resource Groups What is the difference? In addition to a shared affinity, Business Resource Groups emphasize the value the associates provide on the business perspective and help leaders and business units proactively reach out for assistance from them. 12 Business Resource Groups Total Business Resource Groups Currently: 29 Asian: Southern California African American/Black: So Cal, Home Office Hispanic/Latino: Southern California, Home Office, Boise Women: So Cal, NW, Boise, Salt Lake City, Shaw’s, ACME, Home Office, Cub, SUPERVALU India Multicultural: NW, ACME, Jewel-Osco, Northern Region, So Cal, Save-A-Lot, Shoppers, MPLS DC, Hornbacher’s, Shop ‘n Save, Las Vegas GLBTA: Boise, Shaw’s, Home Office 13 2008 Catalyst The 2008 Catalyst Benchmarking Survey showed that 83 percent of surveyed companies support employee resource groups. 14 Top Business Reasons for Resource Groups Reduction in turnover Less absenteeism Increased associate productivity Improved bottom line Increased organizational competitiveness Require little financial backing Source: www.SHRM.org 15 How do you start a Business Resource Group? Find a champion and gauge associate interest Craft a Mission statement or statement of purpose Establish goals – both short-term and long-term Detail tactics on accomplishing the goals, along with a timeline Enlist support of an executive sponsor Define how the group’s mission and goals relate to the company’s core values 16 How do you start a Business Resource Group? Provide Structure Operating Policy Leadership Structure Ask for solutions, not just problem identification Determine how budget dollars will be Establish goals around objectives Support and further business objectives Support recruitment for affinity of the group Support the professional development of the group Contribute to the community 17 Increase awareness of diversity Resources to support BRGs contributions at SUPERVALU Goals and Objectives Event Planning form Monthly Webinar meeting Annual Diversity & Inclusion forum 18 How we Communicate Monthly Business Resource Group call E-mail: diversityandinclusion@supervalu.com Home Office Diversity & Inclusion Bulletin Board Web site Mission statement Business Resource Group sites Quarterly newsletter 19 BRGs are Good for Business Business Opportunity: Gain increased market share with growing segment and buying power of the GLBTA community. Goal: Achieve 100% rating on Human Rights Campaign Corporate Quality Index. Action: Identify gap and communicate the internal and external benefits of closing this gap. Outcome: Addressed gaps with support of senior leadership and achieved 100% rating on 2008 HRC Corporate Quality Index becoming the first grocery chain to do so. 20 Final Notes Successful companies learn to recognize the potential of Business Resource Groups and to harness the potential to drive business results. 21 2008 NEW Integrating Diversity