Virtual Brochure - Save-A-Lot

Become a Save-A-Lot Owner
SAVE-A-LOT IS WELL POSITIONED FOR CONTINUED GROWTH AND PLANS
TO STRATEGICALLY DEVELOP LICENSE AND CORPORATE LOCATIONS
HISTORY
A GREAT OPPORTUNITY FROM DAY ONE.
From a single store in 1977, Save-A-Lot has grown into one of the largest U.S. grocery chains. Since
our inception, our objective has been to deliver high-quality foods at a great value to our customers.
While working for a grocery wholesaler in the mid-’70s, company founder Bill Moran identified an
opportunity for small grocers to compete against emerging megastores and created Save-A-Lot’s
limited assortment business model.
When the first store opened in Cahokia, Ill. in 1977, the format was immediately successful. That same
year, General Grocer Co. adopted Moran’s idea of the carefully selected assortment format and opened
five additional stores in the St. Louis, Mo. area. Within a year, Save-A-Lot expanded to 29 locations and
by 1980, Save-A-Lot had added 52 locations and opened a warehouse in Jackson, Tenn.
In 1983, General Grocer sold Save-A-Lot exclusively to Moran. And five years later, Save-A-Lot was
acquired by Wetterau Incorporated, a St. Louis, MO-based food wholesaler and retailer. This was an
exciting time in Save-A-Lot history. Save-A-Lot expanded aggressively including the purchase of 76
Jewel T stores (at the time, one of the other few U.S. grocery store chains with discounted items)
and two additional warehouses, one in Pennsylvania and one in Florida.
In 1993, SUPERVALU INC. acquired Wetterau and with it, Save-A-Lot. Save-A-Lot remains a wholly
owned subsidiary of SUPERVALU (NYSE: SVU).
By offering our customers unbeatable values and giving our independent retailers a smart and simple
business model, today we have grown to over 1,300 stores. And our plans for more growth could
include you. In fact, we are actively looking for experienced retailers and entrepreneurs who are
seeking a new business opportunity.
BUSINESS
MODEL
SPANNING FROM MAINE TO CALIFORNIA, SAVE-A-LOT IS A LEADER IN THE
HARD DISCOUNT, EDITED ASSORTMENT GROCERY STORE INDUSTRY WITH
OVER 1,300 LOCATIONS. BASED ON INDUSTRY RESEARCH, HARD DISCOUNT
OFFERS THE GREATEST GROWTH OPPORTUNITY IN THE $600 BILLION
GROCERY INDUSTRY.
WHY LICENSEES CHOOSE SAVE-A-LOT:
•E
xclusive brands: High-quality, low-priced assortment accounts for 80%
of Save-A-Lot sales.
•F
ewer SKUs (stock keeping units): Reduced SKU assortment covers 90%
of everyday shopper needs and provides efficient store operations.
• Low prices: Buying power of over 1,300 stores delivers market-leading
everyday low prices.
•N
eighborhood Stores: Whether in an urban, suburban or rural market, we
locate stores in diverse neighborhoods, hire from within those communities
and stock product tailored to the neighborhood.
•S
hopping experience: Our smaller stores average 15,000 sq. ft. and allow for
a quick and easy shopping experience.
•W
orld-class distribution: Best-in-class, dedicated distribution provides our
retailers on-time delivery and works aggressively to prevent out of stock items.
GUIDING PRINCIPLE
Our guiding principle is to be consumer centric. The consumer guides us in everything
we do. While we are always mindful of costs and efficiencies, in the end, our
decisions and actions are guided by how we can best meet the needs and wants
of the value-seeking consumer.
OUR GUIDING PRINCIPLE IS TO BE CONSUMER CENTRIC
SAVE-A-LOT OFFERS SHOPPERS UP TO 40% SAVINGS
ON THE GROCERY ITEMS THEY NEED EVERY DAY
THE SAVE-A-LOT
SHOPPER
WE HELP OUR CUSTOMERS LIVE RICHER, FULLER LIVES BY HELPING
THEM SAVE MONEY AND TIME.
As a leader in the growing hard discount grocery industry, Save-A-Lot attracts and targets an economically challenged demographic that conventional grocers sometimes overlook. We believe that everyone deserves access
to affordable, nutritional, high-quality food.
Whether it’s a budgeting family that wants healthy food or senior citizens
that need to buy diet-specific foods, Save-A-Lot offers up to 40% off on the
things they need every day. Our bright, inviting stores are also located in the
neighborhoods they live in. These convenient locations, great savings and
exceptional customer service are what keep our customers coming back.
GROWTH
SINGLE STORE, MULTI-STORE OR CONVERSION; THERE’S OPPORTUNITY FOR
EXPANSION IN THE U.S. AND CARIBBEAN ISLANDS.
Save-A-Lot actively and strategically grows the store base to raise consumer
awareness and strengthen the many benefits that buying in scale offers our
retailers and customers. This, in turn, provides more growth opportunities
for the entire chain.
Targeting underserved areas is the hallmark of Save-A-Lot’s growth strategy.
The store base is growing in three ways:
• Recruiting experienced business owners and retailers to become
independent, licensed owners/operators
• Converting independent grocery stores and potential acquisitions
• Building new corporate stores
In addition to growing in numbers and market share, Save-A-Lot provides
ongoing operations and marketing support to increase the sales and profits
of existing locations to ensure every Save-A-Lot store keeps up with the times
and stays ahead of the competition.
TARGETING UNDERSERVED AREAS IS THE HALLMARK OF
SAVE-A-LOT’S GROWTH STRATEGY
OVER 70% OF ALL SAVE-A-LOT STORES
ARE OWNED BY INDEPENDENT RETAILERS
NEXT STEPS
SAVE-A-LOT WORKS CLOSELY WITH EACH CANDIDATE EVERY STEP OF THE
WAY TO BECOMING AN OWNER. OUR APPROVAL AND DEVELOPMENT
PROCESS WILL ALLOW US TO LEARN MORE ABOUT EACH OTHER AND
ENSURE THAT SAVE-A-LOT IS THE RIGHT OPPORTUNITY FOR YOU.
1. ARRANGE INITIAL CALL TO ANSWER QUESTIONS AND DISCUSS
DEVELOPMENT OPPORTUNITIES.
2. EXECUTE A CONFIDENTIALITY AGREEMENT.
3. COMPLETE AND SUBMIT APPLICATION AND PERSONAL FINANCIAL HISTORY.
4. MEET WITH A SAVE-A-LOT REPRESENTATIVE AND REVIEW THE PROGRAM.
SCHEDULE AN OPTIONAL DISCOVERY DAY VISIT AT OUR ST. LOUIS-BASED OFFICE.
5. FIND A SITE AND CONDUCT DEMOGRAPHIC/MARKET ANALYSIS.
6. DESIGN A STORE LAYOUT WITH OUR ASSISTANCE.
7. ESTIMATE COST AND OBTAIN EQUIPMENT AND CONTRACTOR BIDS.
8. SITE APPROVAL BY THE SAVE-A-LOT BUSINESS UNIT DIRECTOR.
9. INCENTIVE OFFER APPROVAL BY THE SAVE-A-LOT FINANCE DEPARTMENT.
10. ARRANGE FINANCING FOR NEW STORE.
11. SUBMIT A LETTER OF INTENT (LOI) AND NEGOTIATE THE LEASE.
12. BEGIN CONSTRUCTION OR LEASEHOLD IMPROVEMENTS ON LOCATION.
13. ORDER EQUIPMENT/OPENING INVENTORY AND RECRUIT/TRAIN PERSONNEL.
14. YOUR NEW STORE OPENS!
Depending on real estate availability and other factors, this process will take approximately 6 to 12 months to complete.
If you’re an entrepreneur looking for a terrific business opportunity with one
of the fastest-growing brands in the retail grocery industry and want to give
back to your community, take the first step by visiting save-a-lot.com/own
100 Corporate Office Dr • St. Louis, MO 63045 • (314) 592-9100 • www.save-a-lot.com/own