Transcript Slide 1

Michele Murphy
Senior Vice President of Labor & Employee Relations
SUPERVALU
Jeff Noddle
Chairman and Chief Executive Officer
SUPERVALU
Our World has Changed Dramatically
 Economic uncertainty
 Rising utilities costs
 Increasingly stressed consumer
 Changing the way we look at our business and building
for the future
Welcome Home from Your Safari!
 Minneapolis/St. Paul particularly competitive for grocery
retailer
 Market competition means competition for top talent
 What is SUPERVALU doing to attract and retain a worldclass workforce while facing the realities of a rapidly
changing talent pool?
What are some of these changes?
 By 2012: A shortage of approximately 6 million workers
 By 2019: All but the youngest Baby Boomers will be
retirement age
 Since 1997: Single women with undergraduate or
graduate degrees increased from 28% to 41%
 50% of undergraduate business degrees are awarded to
women
 57% of all bachelor’s and master’s degrees are awarded
to women
 Women hold more than half of all managerial and
professional positions in the U.S.
About SUPERVALU?
 One of the largest grocery companies in the U.S.
 Coast-to-coast, border-to-border footprint
 Operating in some of the largest, most competitive retail
markets in the U.S.
 Brands include CUB, ALBERTSONS, JEWEL-OSCO,
SHAW’S, ACME and SAVE-A-LOT
 Supply Chain organization provides full suite of services
to corporate and independent grocery retailers
 Supply Chain organization serves approximately 5,000
independent and SUPERVALU-owned retail endpoints in
48 states
Where We Do Business:
Retail and Supply Chain
Nothing represents a person’s culture
more than food.
Diversity is the art of thinking
independently together.
-Malcolm Forbes
We all have to expand our capabilities
to encompass the changing world, its
growing diversity and, indeed, its
complexity
-Lachlan Murdoch
Expanding Our Capabilities

Cultural change does not happen overnight

A priority for SUPERVALU: Change must come from
the top

SUPERVALU Board of Directors: 14 individuals; 3
women, 3 people of color

Among the most diverse boards in Minnesota and in
the country
Our Executive Leadership Team
 Eight individuals: 2 women in traditionally maledominated roles
 Janel Haugarth, president and chief operating officer,
Supply Chain Operations
 Pam Knous, chief financial officer
Breaking the “Glass Ceiling”
 Banner leadership is traditionally male-dominated
 Sue Klug, ALBERTSONS Southern California: ~250
stores, our largest retail division
 Judy Spires, ACME: ~130 stores
 Marlene Gebhard, SHOP ‘N SAVE: ~40 stores
 Labor Relations is also male-dominated
 Michele Murphy, senior vice president, Labor and
Employee Relations
Deep Bench Strength
 Impact of women in leadership positions is key to
aspiring executive women
 SUPERVALU has been recognized by Progressive Grocer
“Top Women in Grocery”
 Eleven women named across two years
 Representing a range of functions: operations,
marketing and merchandising, finance
 SUPERVALU offers unique opportunities for challenging,
rewarding careers
Creating Partnerships for Attracting and
Retaining Experienced and Emerging Leaders
 In second year of partnership with Catalyst
 Providing resources, dependable benchmarking
 Board of Services program develops women executives
for vital corporate board experience
 Network of Executive Women: increasing our
sponsorship level
 Exceptional opportunities for networking, best practice
sharing and leadership development
 Geographic footprint allows our local leaders to get
involved in meaningful ways
Reaching Candidates New to the Workforce
 Working with student and graduate organizations help
us find candidates we might not otherwise reach
 Students In Free Enterprise (SIFE): reaching highpotential associates still in undergraduate programs,
committed to becoming socially responsible leaders and
taking control of their own futures
 National Black MBA, National Society of Hispanic MBAs
 Leveraging career fairs, on-campus events and
community and networking activities
 Improves access to diversity candidates
Retention: What’s Important?
 Associates benefit from a cohesive vision, stable
management and sophisticated consumer insight – this
comes from a passionate workforce
 We focus on fostering an atmosphere of inclusion,
respect, integrity and mutual success
 SUPERVALU is creating “the best place to work, shop
and invest in our industry” – starts with a company’s
culture
Using Business Resource Groups to Reinforce
Diversity Commitment, Support Business
 Associate-run groups are allies in supporting company
goals, providing forum for development, participating in
marketing activities
 Groups are in corporate offices and in divisions
throughout the country
 In-Sight and PROUD: GLBT and allies
 BLN: Black Leadership Network
 HOLA: Hispanic Organization for Leadership
Advancement
 Multi-cultural groups
Focus on MESA: Mentoring, Encouraging,
Supporting and Achievement
 Dedicated to providing mentoring, encouraging and
support to women to help achieve professional and
personal goals
 Established in 2001
 Nearly 1000 members across five chapters
 Community involvement focuses on local agencies and
women and children in need
Mentoring for Success
Many people ask me whether it is important for women to
have other women as mentors. While I certainly believe in
women supporting one another’s careers, I would advise
to never turn down a mentor due to gender. In my career,
the grocery supply chain business is traditionally a maledominated field, so my opportunities for female mentors
were few.
As a result, my mentors have been men who connected
with me and challenged me to look at my career growth
and opportunities in a new light. Remember: Mentors
come in all sizes, ages and genders, it’s the support and
trust that you build that counts more than anything.
Janel Haugarth
President and CO
Supply Chain Services
Education: Demonstrating our Commitment
 Education is underrated as a component of associate
retention, particularly with high-potential and diversity
candidates
 Education shows commitment to supporting and
investing in a person’s career
 As an organization: you get back as much as you give
through educational investment
SUPERVALU Work-Based Learning
 Internal program for high-potential associates
 Past 2 years: 78 participants: 32 women, 14 diversity
 Participants identified as strong candidates for potential
leadership across all company functions
 Intensive 9-month program focused on real business
issues; interactive, energetic educational experience
 Opportunity for knowledge transfer from Baby Boomers
 Allows continuing evaluation of next-generation leaders
 Fosters appreciation of a variety of perspectives
FMI Educational Forum: Industry
Collaboration is Vital
 Although we compete, we must collaborate to create a
healthy, vibrant, attractive industry
 Inaugural conference in May 2009
 Opportunity to learn from each other and bring together
scholars, executives, industry leadership and vendors
 Continue to find opportunities to collaborate in
attracting and retaining the best and brightest
We are of course a nation of difference
– they are the source of our strength
- Jimmy Carter
Driving Business Results with Diversity
 Ensure a true culture of inclusion
 Inclusion: making a place at the table for everyone
 Take into account that diversity is not skin color or
gender; it’s about the vast spectrum of ideas,
experiences and opportunities
 Create game-changing innovation through inclusive
learnings
Changing the Game: Creating SUPERfusion
 Needed a new merchandising and marketing
organization following 2006 acquisition of Albertsons
properties
 SUPERfusion vision: the strongest grocery retailer was
one that could leverage national scale but remain
completely relevant to each neighborhood
 We had to move quickly – filled more than 200 positions
between January 2008 and September 2008
 Result: One of the most collaborative, experienced and
innovative teams in the industry creating experiences
that are exactly what our shoppers want
Times are Changing. Are we?
 Women account for 93% of all food purchases
 70% of new businesses are started by women
 59% of women feel misunderstood by food marketers
 A learning: Nearly every customer who walks through
our doors is a woman – and with more women in the
workforce, chances are these customers are pressed for
time. When they walk into the store, more than half of
them don’t think we give them what they want.
Sources: Trendwatching, Aug. 2007; Telestra
Business Women’s Awards.
Identifying our Opportunity
 Drawing on expertise of experienced, market-savvy
women – see our customers through their own eyes
 Research and development: research lab, test kitchens,
focus groups and our own associates
 Our opportunity: Create a straight-forward, easy,
supportive shopping environment that helps busy
shoppers put together the meal they’re looking for
Business Initiative: Meal Solutions
 Helps consumers put good, nutritious, restaurant-quality
meals on the table
 One-stop-shopping for all entree ingredients, often
including recipes and sides
 In and out quickly
 Understanding our shopper, time constraints and
desires, we help to “turn the dining room lights back on”
Demands are changing. How are we helping
customers buy what they want?
 Diversity addresses a wide range of experiences and
perspectives
 Old thinking: Organics are for “Birkenstock crowd” and
“tree huggers”
 New thinking: Organics are healthier, more desirable,
can be pricier
 27% of consumers purchase organics weekly
 96% of consumers use fresh organics occasionally
 North America is largest organic food and drink market
 Entry to organics perceived as price prohibitive
Business Initiative: Wild Harvest Own Brand
Meeting Needs, Supporting Communities
 Committed to developing and managing a vital Supplier
Diversity program
 Ensuring opportunities for women and minority business
entrepreneurs to do business with us
 Supports our drive to procure products and services to
meet diverse customer needs
Business Success: Cynthia Cook Inc.
 Partnership began in 1990s in Twin Cities
 Product demonstrations and merchandising needs
 Expanded to additional markets, specifically for
remodels and grand openings
 Additional opportunities within the organization
 Outcomes: Job creation for Cynthia Cook Chefs,
increased sales for SUPERVALU suppliers, increased
revenues of SUPERVALU banners
Celebrating Diversity in our Communities
 Raising awareness, creating promotions and driving
store traffic in support of diversity and cultural
celebrations
 Leveraging relationships with local and national vendor
partners to recognize Black History Month and Hispanic
Heritage Month
Business Initiative: Black History Month
Partnership Drives Sales, Philanthropy
 SUPERVALU and Coca-Cola donated $150,000 to 49
non-profit organizations as part of Coca-Cola’s “A
Moment of Inspiration, a Lifetime of Black History”
celebration
 With Coca-Cola, hosted viewing parties of PBS program
“African American Lives II”
 Additional partnerships with Colgate, General Mills,
Kellogg’s, Kraft and Unilever for high-profile
merchandising and donation program
 In-store samplings feature more than 30 AfricanAmerican vendors, driving awareness and sales
Variety is the Spice of Life
- American proverb
Change is Constant and Transformational
 By 2010: More than 64 million skilled workers of
retirement age
 Gen Y is 70 million strong, and nearly half of them are
adults in the American workforce today
 By 2012: Hispanic buying power increases 47.8%
 By 2012: African American buying power increases 34%
 By 2012: Asian buying power increases 45.9%
 By 2050: Hispanic population will increase 297%
 By 2050: Asian American population will increase 181%
Harnessing diversity is the key to our future.
The long-term health of our business
depends on it.