Corporate Governance at Albertson's
|
Case Code: CGOX008 Case Length: 09 Pages Period: 2003 Pub Date: 2003 Teaching Note: Not Available |
Price: Rs.300 Organization: Albertson's Super Market Chain Industry: Supermarket Chain Countries: United States Themes: - |
Abstract Case Intro 1 Excerpts
Introduction
Albertson's, the #2 US supermarket chain behind Kroger, operated nearly 2,300 stores in 31 states under names such as Albertson's, Acme Markets, and Jewel. More than half were combination food stores and drugstores (most with floral, bakery, and video departments), and about 200 had gas stations. Some 700 outlets were stand-alone drugstores operating under the Osco Drug and Sav-on flags. Albertson's also ran discount warehouse stores under the Super Saver and Max Foods banners. In 2003, Albertson's recorded revenues of $35,626.0 million and a net income of $485.0 million.
Albertson's had announced plans to spend $4 billion by the end of 2001 to launch more than 500 new food-and-drug combination stores, stand-alone drugstores, and fuel centers. But these plans were reversed when new CEO Larry Johnston announced a restructuring plan that would close about 165 under performing stores and cut 15-20% of non-store jobs. In addition to expanding in Arizona, Colorado, Nevada, Oklahoma, and Texas, Albertson's planned to invest $1 billion to remodel stores and build new ones in California. Albertson's finalized a deal with Toys R Us, which became the exclusive toy supplier to all of Albertson's stores and a joint venture with Office Depot which provided office and school supplies to 18 stores in Chicago, Los Angeles, and Phoenix. Albertson's was also stepping up promotions and cutting prices to win back grocery sales from Wal-Mart super centers, against which one in four Albertson's stores competed...
Buy this case study (Please select any one of the payment options)
| Price: Rs.300 |
Price: Rs.300 | PayPal (7 USD) |
