Information Kit. 100 Corporate Office Drive St. Louis, MO save-a-lot.com
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1 Information Kit 100 Corporate Office Drive St. Louis, MO save-a-lot.com
2 Contents FACT SHEET COMPANY MISSION COMPANY HISTORY BIOGRAPHY: BILL SHANER, PRESIDENT & CEO SAVE-A-LOT INTRODUCTION BUYING POWER RETAILER PROGRAM FREQUENTLY ASKED QUESTIONS
3 Fact Sheet Established: 1977 Headquarters: St. Louis, Missouri Address: 100 Corporate Office Dr. St. Louis, MO (314) Save-A-Lot opened its first store in Today, the company is the nation s leading extreme value, edited assortment grocer and the fifth largest chain under a single banner. Save-A-Lot operates nearly 1,200 grocery stores in 39 states. Licensed retailers operate approximately 75 percent of the stores. More than 4 million shoppers visit Save-A-Lot each week. Save-A-Lot s prices are up to 40% less than conventional grocery stores. Save-A-Lot stores meet shoppers primary grocery needs by carrying 1,250 of the most popular SKUs. Save-A-Lot s 400+ trademarks and exclusive brands deliver quality and value. The average size of a Save-A-Lot store is 14,000 to 16,000 square feet. Save-A-Lot stores are bright, clean and convenient. Save-A-Lot is a self-distributing company with 15 distribution centers strategically located across the U.S. Save-A-Lot introduced general merchandise into its stores in 2002, further establishing itself as a leader in extreme value retailing. BUSINESS MODEL Save-A-Lot s edited assortment format means that stores carry only the most frequently purchased grocery items, plus USDA-inspected meats and farm-fresh fruits and vegetables. The company carries high quality exclusive brands many produced by the same manufacturers of leading name brands and a selection of nationally branded items. The company s edited assortment model, smaller stores, power buying, self-distribution and operating efficiencies allow Save-A-Lot to offer savings of up to 40% compared to conventional grocery stores without asking shoppers to sacrifice quality. Save-A-Lot s addition of general merchandise meets additional wants and needs of consumers, plus it saves shoppers a trip or two. PRODUCT SELECTION Save-A-Lot carries a wide selection of high quality products, including: Fresh fruits and vegetables USDA-inspected beef, pork and poultry Dairy products Frozen foods Grocery products Smoked and packaged meats Snack foods Household products Health/beauty aids Pet food General merchandise
4 Company Mission Save-A-Lot is committed to selling high quality groceries at terrific savings every day. Save-A-Lot is keenly aware of its responsibility to its customers and a need to maintain its high standards of honesty, efficiency and performance. Save-A-Lot s associates are the company s greatest resource. That s why the company has created and preserves a climate of sharing, a sense of teamwork and a feeling of family. SAVE-A-LOT VALUE Save-A-Lot is committed to selling high quality groceries at terrific savings every day. Maintaining low prices demands a commitment from Save-A-Lot to operate efficiently and effectively. And while Save-A-Lot continually strives to offer low prices, it never asks consumers to sacrifice quality. SAVE-A-LOT QUALITY Save-A-Lot works hand-in-hand with vendor partners to produce 400+ trademarked exclusive brands and also carries an assortment of leading name brand items. Save-A-Lot s exclusive brands meet or exceed the quality of their name brand counterparts; in fact, many of Save-A-Lot s exclusive brands are manufactured by the same manufacturers of the leading national brands. Every product in a Save-A-Lot store carries a 100%, unconditional satisfaction guarantee. OUR CUSTOMERS AND COMMUNITIES Save-A-Lot is keenly aware of its responsibility to its customers and its need to maintain high standards for value. Save-A-Lot recognizes the importance of good corporate citizenship in each of the markets its serves. The company takes seriously the charge to operate its stores in a manner that makes the company a welcome neighbor. Save-A-Lot also encourages employees to participate in community activities consistent with its philanthropic outreach efforts which include children s welfare and feeding the hungry. OUR STORES Save-A-Lot is committed to providing a safe, clean, convenient and dignified shopping experience for its customers. The company operates bright, well-lit, fully stocked and easy-in, easy-out stores usually located within a mile or two of where shoppers live and work. Wherever Save-A-Lot does business in urban, suburban or rural environments the company believes that all shoppers deserve a respectful shopping environment. OUR ASSOCIATES Save-A-Lot s associates are the company s greatest resource. That s why the company has created and preserves a climate of sharing, a sense of teamwork and a feeling of family. That requires clear, open lines of communication; a significant commitment to training and development; competitive compensation and benefits; a commitment to diversity; equal opportunity; and high standards of honesty, integrity and performance. SAVE-A-LOT SUSTAINABILITY COMMITMENT At Save-A-Lot, we have a responsibility to identify and support initiatives that are environmentally-friendly, ranging from recycling programs to reducing energy usage in our stores and offices. Since Save-A-Lot opened its first store 30 years ago, our business model and philosophy have always been to operate efficiently, reduce excess and make productive use of our resources. We are committed to environmental stewardship and sustainable operations and continually work to use energy more efficiently and reduce waste. We invite all our customers to join us in our commitment to protecting the environment through responsible use of our natural resources.
5 Company History 1977 First Save-A-Lot store opens General Grocer Co. adopts Save-A-Lot concept; adds five stores in St.Louis,MO locations added more stores and a warehouse in Jackson,TN, open Wetterau Inc., purchases Save-A-Lot Save-A-Lot adds 76 stores and two warehouses Save-A-Lot becomes a subsidiary of SUPERVALU Save-A-Lot opens its 1,000th store 2006 Bill Moran, Founder & CEO announces his retirement & Bill Shaner named President & CEO HUMBLE BEGINNINGS Save-A-Lot s unique concept was introduced in 1977 when the first store was opened in Cahokia, IL. Today Save-A-Lot is the nation s leading extreme value, edited assortment grocery chain with 1,200 stores in 39 states, serving more than 4 million shoppers weekly. A self-distributing company, Save-A-Lot has also grown its logistics network and operates 15 dedicated distribution centers strategically located across the U.S. Save-A-Lot s value equation providing high quality groceries at savings up to 40% less than conventional stores continues to stand as the company s cornerstone. Save-A-Lot s edited assortment, extreme value format was conceptualized and executed by Bill Moran, who for nearly 30 years refined the concept until retiring in SUCCESSFUL STRATEGY While the edited assortment concept was new, the Save-A-Lot model was immediately successful. In fact, the idea soon allowed smaller, independent retailers to compete effectively with growing retail chains. It was in early 1978 that General Grocer Co. saw great potential in the format, adopted Moran s idea and soon opened five additional stores in the St. Louis area. Awareness of this new way of retailing and its emphasis on price, quality and convenience spread quickly primarily through word-of-mouth. Save-A-Lot rapidly expanded to more than 30 locations by In 1980, the company added 50 new stores and opened a warehouse in Jackson, TN. In 1983, Wetterau Incorporated, a St. Louis, MO based food wholesaler and retailer bought the Save-A-Lot operation. By 1984, Save-A-Lot had aggressively expanded operations by acquiring 75 Jewel T stores and two additional warehouses. Save-A-Lot became a subsidiary of SUPERVALU INC. in 1993 when the Minneapolis, Minnesota-based food wholesaler and retailer acquired Wetterau. Save-A-Lot remains a wholly owned subsidiary of SUPERVALU. UNIQUE BUSINESS MODEL The company has prospered because of a commitment to its unique format. Save-A-Lot s streamlined purchasing, delivery, retail operations, and a focus on high quality exclusive brands continue to deliver extreme value to consumers. In spring of 2002, Save-A-Lot further redefined extreme value retailing when it acquired a chain of general merchandise stores. Since that acquisition Save-A-Lot has utilized its new expertise to introduce everyday general merchandise items into Save-A-Lot stores to further meet the wants and needs of value-oriented shoppers.
6 Biography: Bill Shaner Bill Shaner President & Chief Executive Officer, Save-A-Lot As President and CEO of Save-A-Lot, Bill Shaner leads one of the nation s largest grocery store chains with its mission to offer its customers the best shopping experience at its nearly 1,200 stores across the nation. Bill firmly believes that Save-A-Lot s strength is offering great food, great prices and great people every day. After being named President and Chief Executive Officer in 2006 when Save-A-Lot s founder Bill Moran announced his retirement, Bill continued the company s focus on consumers. He leads his team to be mindful of its customers in their daily actions and decisions. He encourages his associates to always keep in mind how to best meet the needs of the more than 4 million value seeking consumers that visit Save- A-Lot stores each week. Bill brings a wealth of experience to the role with close to 30 years in the retail industry. In addition to his President and CEO positions at Save-A-Lot, Bill is also a Senior Vice President of parent company, SUPERVALU. Bill joined Save-A-Lot in 1999 as Executive Vice President and Chief Operating Officer, following 15 years at parent company SUPERVALU. As Save-A-Lot s COO, his responsibilities included store sales and profitability; real estate and market development strategies for both corporate and licensed retail; store design and construction; and the company s self-distributing logistics network. Prior to working at SUPERVALU, Bill started his career at the Kroger Company working in various positions including procurement, merchandising, retail operations, and store management. Bill earned his bachelor s of science degree in marketing from Wheeling College. He also completed the Advanced Executive Program at Northwestern University and the Financial Management Program from the Wharton School of Finance. In 2008 SUPERVALU recognized Bill Shaner as its 2008 Champion of Diversity (insert link to diversity page with video). This honor is bestowed upon Bill for his commitment to driving the company s diversity and inclusion efforts in what he does each day. Bill is active on several boards in the community including the United Way of St. Louis, St. Louis Regional Business Council, the Central Institute of the Deaf and the St. Louis Crisis Nursery.. He enjoys golf, swimming, traveling and a variety of sports. Bill, his wife Donna, and their two children reside in St. Louis. He joined SUPERVALU in 1984 and has held a variety of positions of increasing responsibility including president of SUPERVALU s former Maryland division, president and chief operating officer of the former Laneco division, and president of SUPERVALU s Central region.
7 An Introduction to Save-A-Lot Offering products at prices much lower than what shoppers are accustomed goes against what they ve been told that the more you pay, the better the product. That s simply not the case at Save-A-Lot. Our products match or exceed their national brand equivalents. B i l l S h a n e r, President and Chief Executive Officer SAVE-A-LOT IS A NEIGHBORHOOD GROCERY STORE Save-A-Lot brings great food at great prices to all types of communities urban, rural and anywhere in between. The company operates more than 1,200 stores in 39 states and is committed to providing great value on the items shoppers purchase most often. Customers can save up to 40% compared to conventional grocery stores every day, so they shop Save-A-Lot again and again. THE SAVE-A-LOT DIFFERENCE At Save-A-Lot, customers can taste the difference. That s because each and every product on a Save-A-Lot shelf is carefully selected. Customers can be absolutely sure that the company s high quality, exclusive brands and an assortment of name brand items meet exacting standards for quality and value. Save-A-Lot shoppers want and deserve the best. At Save-A-Lot, that s exactly what they get for their food dollar. SAVE-A-LOT S VALUE EQUATION The company s buying power and efficiencies drive down costs and savings are passed along to the consumer. By saving up to 40% every time they shop, customers can see their grocery bills drop $30 to $40 per trip. That s like receiving more than a week s worth of groceries free each month. SAVE-A-LOT LOWERS COSTS Here s how Save-A-Lot s unique business model helps customers save money: Save-A-Lot stores are smaller than conventional grocery stores and carry only the most popular items. The smaller format means shoppers don t pay for excessive overhead or costly inventory. You will find quality groceries. What you won t find are cappuccino kiosks, in-store floral departments or other frills that drive up costs. Save-A-Lot carries a high quality line of exclusive brand products shoppers won t find anywhere else. These brands are made exclusively for Save-A-Lot at substantial savings. Shoppers don t pay for costly advertising and marketing of the national brands. Keeping operating costs below market averages gives Save-A-Lot a competitive edge. Stores reduce operating expenses and the company focuses its buying power by carrying one size the most popular of each item. Save-A-Lot is a self-distributing company with 15 dedicated distribution centers making deliveries simple and cost efficient. Save-A-Lot helps reduce labor costs by procuring, shipping and merchandising products out of custom cartons. This reduces shelving and other costs. By bagging their own groceries Save-A-Lot customers help eliminate labor costs. EDITED ASSORTMENT Save-A-Lot does some of the shopping for its consumers by carrying an edited selection of grocery and non-food items the products people buy most often. Save-A-Lot stores typically carry about 1,250 SKUs, compared to 30,000+ at conventional stores.
8 Buying Power We need to match or exceed national brand quality. That s something a lot of companies claim, but we back it up with rigorous quality control. Although low prices are part of Save-A-Lot s appeal, we don t assume that customers are interested only in the cheapest products available. They want and deserve the best quality they can afford. One of the things we ve done differently is to go for quality first and then negotiate the best price we can. We do not let price dictate the quality. Our commitment to consumers is that we will offer them the very best product available. Bill Shaner, President and Chief Executive Officer And Save-A-Lot s edited assortment format allows the company s buyers to negotiate the lowest prices on Save-A-Lot exclusive brands and even select national brand items. Focused on providing its customers with the very best products at the very best prices, Save-A-Lot has earned a reputation as an innovator and a leader in the grocery industry. Today the company continually refines its edited assortment method of retailing and couples that strategy with tremendous buying power. Save-A-Lot s buying power of 1,200 stores and 4+ million weekly shoppers makes the company one of the largest purchasers of many of the products we carry. This buying power allows Save-A-Lot to negotiate with leading manufacturers often the same producers of the key national brands. The result is exceptionally low prices on high quality products. Save-A-Lot s buying power is phenomenal from an industry standpoint, said Bill Shaner, President and Chief Executive Officer. Save-A-Lot is the biggest customer for many of our vendors. From a vendor s perspective, Save-A-Lot can mean reaching over 4 million customers a week through a single retail source. What s on the package is not as important as what s in the package, Shaner said. Being associated with Save-A-Lot has made many of our vendors successful. But it s success that they ve earned because they provide Save-ALot and its customers high quality products. If the quality isn t there, then they lose Save-ALot s business. We want our customers to be satisfied.
9 Retailer Program Save-A-Lot s licensed retailer program provides excellent opportunities for independent grocers to compete in the retail market. It s a disciplined system with a lot of dedicated people. You can be very successful with this format. Don Haltenhof, Save-A-Lot Retailer Nearly 75% of Save-A-Lot s stores are operated by licensed retailers. Save-A-Lot is a great format for us. It s much simpler than a conventional grocery store, so you can focus on execution. It s easy to administrate, and you don t have the huge capital investment required to open a conventional store. Mike Lofino, Save-A-Lot Retailer A SUCCESSFUL LICENSED RETAILER PROGRAM Save-A-Lot s licensed retailer program combines the strength of entrepreneurs and the power of the nation s fifth largest grocery banner. Approximately 75% of Save-A-Lot s nearly 1,200 stores are operated by licensed retailers entrepreneurs ranging from single store operators to ownership groups that operate dozens of stores. For all, the Save-A-Lot retailer program provides a unique and proven format to effectively compete in the grocery industry. In fact, Save-A-Lot s business model was specifically designed to help independent retailers compete in an ever-evolving industry. And our retailers not only recognize the potential but they see the results every day. Underscoring the success of the model is the fact that many of our retailers own multiple stores and continue to open additional stores. Don Haltenhof, a Columbia, IL-based grocer, is a typical Save-A-Lot retailer. He has been associated with the company since the late 70s. He and a partner now operate dozens of stores in Illinois, Missouri, Indiana, Tennessee and Oklahoma. It works, Haltenhof said of the Save-A-Lot retailer program. It s a disciplined system with a lot of dedicated people. You can be very successful. What s really unique about Save-A-Lot comes back to discipline not having as many items as conventional stores and being able to order and receive everything from a single warehouse. Fifteen years ago we were buying products from multiple sources milk from one place, meat from another. Now, everything we sell comes on one truck. We can better serve our niche and provide groceries to people who want high quality and a low price. Said Mike Lofino, a Dayton, OH-based retailer, Save-A-Lot is a great format for us. It s much simpler than a conventional grocery store so you can focus on execution. It s easy to administer, and you don t have the huge capital investment required to open a conventional store. You can open several Save A-Lot stores for the cost of a single conventional store. LICENSED RETAILERS In identifying potential licensees Save-A-Lot looks for a track record of successful experience in management. Many of our retailers have grocery experience. Others have been successful in other industries. And whether a store is located in an urban, rural or suburban market, a key to retailer success is the ability to follow a well-defined program with energy and enthusiasm. Current and new retailers help the company grow at a rapid pace.
10 Frequently Asked Questions Save-A-Lot stores provide a quicker, more convenient shopping experience and provide customers with savings of up to 40% compared to conventional grocery stores. Save-A-Lot carries its own line of highquality exclusive brands items you won t find anywhere else. What is a Save-A-Lot store? Save-A-Lot stores are unique, neighborhood grocery stores that offer high quality products at low prices. One major difference you ll discover at Save-A-Lot is a smaller, easier-to-shop store that saves shoppers time and energy. Stores are typically 14,000 to 16,000 square feet with aisles that are wide and uncluttered. The result is a quicker and more pleasant shopping experience. While shoppers will find the grocery basics they re looking for, they won t find in-store coffee bars, or other frills that drive up costs. What does edited assortment mean? Save-A-Lot has already done some of the shopping for its customers. Save-A-Lot s edited assortment strategy means that stores carry about 1,250 of the best-selling grocery items in the most popular size and variety. Most are Save-A-Lot exclusive brands plus an assortment of nationally branded items. By carrying only the food items shoppers buy most often, Save-A-Lot creates unparalleled efficiencies and savings throughout the supply chain from procurement to distribution to merchandising. What types of products does Save-A-Lot carry? Save-A-Lot stores carry everyday grocery items with a focus on exclusive brands and an assortment of national labels. Shoppers will find USDA-inspected meats, farm-fresh fruits and vegetables, dairy products, bakery goods, groceries, health and beauty items, household goods, pet food and even an assortment of general merchandise. How do exclusive brands help shoppers save money? Save-A-Lot s exclusive brands deliver high quality at great savings, up to 40% less than conventional grocery stores. With nearly 1,200 stores and 4+ million weekly shoppers, Save-A Lot has the buying power to offer high quality and low prices. Save-A-Lot customers don t pay for the costly national advertising and marketing programs of the name brands. How does Save-A-Lot s logistics network drive down retail prices? Save-A-Lot operates a dedicated network of 15 distribution centers strategically located across the U.S. that are designed specifically to support edited assortment stores. The network allows stores to order everything they need on a single truck, making deliveries efficient and cost effective. Also, product is shipped and merchandised in custom cartons, eliminating costly labor and shelving charges at store level. Savings are passed along to consumers. Who is the typical Save-A-Lot shopper? Save-A-Lot shoppers are value-oriented consumers looking for high quality groceries and significant savings compared to traditional grocery stores. Save-A-Lot targets consumers who either need or want to save money on their grocery bills. Save-A-Lot serves 4+ million customers weekly in all types of markets urban, rural and suburban.
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