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SEGMENT INFORMATION
12 Months Ended
Feb. 22, 2014
Segment Reporting [Abstract]  
SEGMENT INFORMATION

NOTE 13—SEGMENT INFORMATION

Refer to the Consolidated Segment Financial Information for financial information concerning the Company’s operations and financial position by reportable segment.

The Company’s operating segments reflect the manner in which the business is managed and how the Company allocates resources and assesses performance internally. The Company’s chief operating decision maker is the Chief Executive Officer.

The Company offers a wide variety of grocery products, general merchandise and health and beauty care, pharmacy, fuel and other items and services. The Company’s business is classified by management into three reportable segments: Independent Business, Save-A-Lot and Retail Food. These reportable segments are three distinct businesses, each with a different customer base, marketing strategy and management structure. The Company reviews its reportable segments on an annual basis, or more frequently if events or circumstances indicate a change in reportable segments has occurred.

The Independent Business reportable segment derives revenues from wholesale distribution to independently owned retail food stores and other customers (collectively referred to as “independent retail customers”). The Save-A-Lot reportable segment derives revenues from the sale of groceries at retail locations operated and licensed by the Company (both the Company’s own stores and stores licensed by the Company to which the Company distributes wholesale products). The Retail Food reportable segment derives revenues from the sale of groceries and other products at retail locations operated by the Company. Substantially all of the Company’s operations are domestic.

 

The Company offers a wide variety of nationally advertised brand name and private-label products, primarily including grocery (both perishable and nonperishable), general merchandise and health and beauty care, pharmacy and fuel, which are sold through the Company’s owned, licensed and franchised retail stores to shoppers and through its Independent Business to independent retail customers. The amounts and percentages of Net sales for each group of similar products sold in the Independent Business, Save-A-Lot and Retail Food segments and Corporate revenue consisted of the following:

2014 2013 2012

Independent Business:

Nonperishable grocery products (1)

$ 6,000 35 % $ 6,140 36 % $ 6,222 36 %

Perishable grocery products (2)

1,951 11 1,935 11 1,880 11

Services to independent retail customers and other

85 1 91 1 92

8,036 47 % 8,166 48 % 8,194 47 %

Save-A-Lot:

Nonperishable grocery products (1)

$ 2,829 17 % $ 2,865 17 % $ 2,925 17 %

Perishable grocery products (2)

1,399 8 1,330 8 1,296 7

4,228 25 % 4,195 25 % 4,221 24 %

Retail Food:

Nonperishable grocery products (1)

$ 2,600 15 % $ 2,689 16 % $ 2,820 17 %

Perishable grocery products (2)

1,463 9 1,428 8 1,461 8

Pharmacy products

491 3 512 3 483 3

Fuel

67 77 126 1

Other

30 30 31

4,651 27 % 4,736 27 % 4,921 29 %

Corporate:

Transition service revenue

$ 240 1 % $ 42 % $ 47 %

Net sales

$ 17,155 100 % $ 17,139 100 % $ 17,383 100 %

(1) Includes such items as dry goods, general merchandise, health and beauty care, beverages, dairy, frozen foods, and candy

(2) Includes such items as meat, produce, deli and bakery