Supervalu is a corporation located in Delaware that was constructed in 1925 as a prime heir of two grocery firms that were wholesale. These grocery firms were established in 1870, and from then on came the conceptualization of Supervalu Incorporated. The company’s chief executive offices are found in Minnesota at 11840 Valley View Road (Supervalu, 2015). Being the largest corporation within the United Stated of America that constitute all grocery channels, Supervalu does its operations under different subsidiaries including the Albertsons, Cub Foods, Bristol Farms, Hornbacher’s, Shop ‘n Save, among others. Its diversification extends to in-store pharmacies that are under the banner of Osco and Sav-On. In addition, Supervalu avails supply chain services, in particular, wholesale distribution throughout the United States’ grocery distribution channels. To get the scale and immensity of the company, recently, on June 2, 2006, Supervalu obtained New Albertson’s Inc. that consisted of supermarket businesses that were core within the grocery retail world. Albertson’s, Inc. formally owned the New Albertson’s, which operated close to 1,125 stores that had different banners, distribution centers that were 10 in number, and other corporate and regional offices. As part of the overall acquisition, Supervalu assimilated most of the trade names and trademarks, which in turn greatly increased the overall size of the company. Through its website, supervalu.com, the company avails its annual, quarterly, and current fiscal reports, which are furnished or filed pursuant to relevant sections of the Securities Exchange Act legislature. It is from these reports that this paper draws accurate financial reports of this company (Supervalu, 2010).
As the company grows, so does its fiscal operations. Through targeted remodeling and development activities, the company continues to enlarge its focus on retail growth that is long term and one that will enable the company to experience financial independence even in the future. In the 2010 fiscal year only, the company supplemented its portfolio with 40 new stores through an upgrade plan and developmental agenda. Through its supply chain services, the company leverages distribution operations by inherently availing wholesale distribution services and logistics solutions to autonomous retail customers. Such supply tactics earn the company substantial overall profits. The overall business conducted by Supervalu is normally classified through management into two segments that are reportable. These segments are the retail food and supply chain services. Representing two divergent businesses, one that is retail in nature and one wholesale, each serves different customers with different business agendas that are the customer base, management structures and marketing strategy. In retail, the company derives most of its revenues from the sale of groceries in various retail locales that are kept functional by the company through two means, which are direct ownership and licensed companies. In the supply chain, the company derives its profits from the wholesale distribution of products majorly to retail stores that are autonomous, merchants who deal in mass sale, and other clienteles. In addition, logistical services are also part of the company’s portfolio with all of its services being integrally domesticated.
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In order to comprehend the scale of the fiscal budget, a characteristic understanding of its retail food and supply chain services is needed. Also, an understanding of the company’s product and human resource immensity is of value. Through a total of 2349 hard-discount and traditional stores that operate in a retail manner, and a dedicated distribution network comprising of 32 centers, the company has a heavy interest in the grocery retail business. Furthermore, it operates more than 1000 traditional retail stores under different banners that consist of stores ranging from 30,000 to 60,000 square feet (Supervalu, 2010). The product diversity is also of great interest since the company offers additional products such as health solutions, general merchandise, beauty care, fuel and many more. Under the supply chain service, the company principally accords wholesale distribution of products. Its supply chain service network encompasses 49 states and aids as the primary grocery supplier to thousands of stores and the secondary supplier to hundreds. In addition, the company accords particular services that facilitate autonomous vendors and retailers in their sales activities. Such services include payment, invoicing and sourcing. Supervalu had 160,000 employees as of February 27, 2010. Such immense human resource ultimately makes this company have tremendous fiscal properties regarding strategic arrangements, budgeting, and reporting.
Supervalu has always relied on key strategic values to enable constant performance of its business. One strategic implementation it has always relied on is being the local retailer. Although it has a national footing, the company has always strived to match pricing to surrounding stores. Giving the various retail outlets the power to control pricing has enabled the company to stay afloat through turbulent economic times. In looking at the fiscal report, a number of factors determine gross profits. These factors include available competition, indebtedness, labor relations, employee benefits costs, relationships with other subsidiaries, disruptions and intrusions to information and communication technology systems, government regulations, the safety of food and drugs. All these factors affect the overall fiscal report either directly or indirectly. Over the years, the company has witnessed tremendous monetary transformations. Through various volatile variables, the company has increasingly dealt with constant financial constraints that have resulted in a dynamic fiscal reality. In fiscal 2013, Supervalu declared a non-payment of regular dividends, and this led to an amendment in a binding term the company had entered into with the Pension Benefit Guarantee Corporation. This rendered the company unable to pay any dividends. Such results are due to the dynamic nature of financial undertakings within a large corporation such as Supervalu.
Presently, Supervalu has released its fiscal 2016 results with amalgamated operating earnings of $101 million for its fourth quarter. According to businesswire.com, Supervalu Inc. reported consolidated net earnings of $3.95 billion and ongoing operations earnings of $49 million, translated to $0.18 per share ("SUPERVALU Reports Fourth Quarter and Full Year Fiscal 2016 Results", 2017). This net profit was inclusive of $15 million charges non-inclusive of tax and other costs that relate to the refinancing of debts, impairments and the closure of stores. After adjustment in relation to other costs, the overall fourth quarter fiscal earnings of 2016 resulted to $64 million, an equivalent of $0.23 in each dilute share (Supervalu, 2015). With this current fiscal report, Supervalu continues to make headway in regards to the retail business throughout the nation. Its consolidated statement of operations continues to show solid progress and improvement amid tough economic times. However, to improve the company, the financial manager needs to put in place strategic measures that will result in more profits and fewer risks. First, the risk management within the company needs to be top notch, and it further needs to acknowledge that present decisions affect future discourse of the company. Observable risk factors include economic conditions, initiative execution, and tremendous indebtedness. These factors significantly influence the overall development and fiscal trajectory of companies. Therefore, as a financial manager, risk would be at the top of my fiscal developmental agenda. Ultimately, the analysis of Supervalu is of utmost significance since this company has been in business for quite a long time. Therefore it presents a wide range of valuable financial data. Moreover, Supervalu has a diversity that is unmatched in the grocery business world. This diversity accords detailed fiscal reporting that encompasses all financial areas.
References
Supervalu. (2010). Fiscal 2010, Annual Report .
Supervalu. (2015). Fiscal 2015, Annual Report .
SUPERVALU Reports Fourth Quarter and Full Year Fiscal 2016 Results . (2017). Businesswire.com . Retrieved 9 July 2017, from http://www.businesswire.com/news/home/20160426005829/en/SUPERVALU-Reports-Fourth-Quarter-Full-Year-Fiscal
