A Grocery Perspective: There’s More to Grocery Than Food Speakers: Elliott Olson, Dakota Worldwide Jim Hornecker, SUPERVALU Paul Tucci, Oppidan, Inc. Moderators: Dave Bade, RLK Incorporated Brent Anderson Elliott W Olson

Dakota Worldwide Corporation, Inc TWIN CITIES GROCERY 1972 Dominant Players

• Applebaum’s • Country Club • Penny’s • • • Shoppers City • Super Valu & Byerly’s • Lund’s 2009 Share of Sales 2011 Share of Sales “Everybody want’s to get into the act.”

Jimmy Durante Sam’s Club Dollar General Dollar Tree Family Dollar United Noodles Target Wal*Mart Farmer’s Markets Co-ops Whole Foods Coborns Alice & Gilt & More CVS Walgreens Fresh Fruit & Veggies Meat & Sushi Walgreens Share of Stomach THE ONLY CONSTANT IS CHANGE Attribution

• Market share courtesy of John Dean. • Share of stomach “Who Eats What, When and From Where? Andrea Carlson, Jean Kinsey, Carmel Nadov Working Paper 98-05, The Food Industry Center, University Of . SUPERVALU

Jim Hornecker Director of Real Estate SUPERVALU is Big

• One of the largest grocery companies in the U.S. • Annual Revenue: $37.5 billion (FY11) • 140,000 employees • #61 on the 2011 Fortune 500 SVU is National SVU Has 3 Big Parts

• 1,114 traditional retail – 805 in-store pharmacies • 1,280 hard-discount stores – 899 stores operated by license owners • 2,700 independent locations serviced by our Independent Business Segment – Primary supplier to 1,900 stores Check out SVU’s Banners Save-A-Lot Independent Business : #1 in the Twin Cities

• Cub was born here in 1968 • Well-established market leader • Corporate and franchise Cubs • High growth through the 2000’s • Looking to grow more Paul Tucci Vice President Oppidan History

• 20 years in service

• #1 Commercial Developer, Twin Cities Business, 2011

• $1.4 Billion dollars in Real Estate Developed

• 8 Million Developed Square Feet

• National and Local Developer Oppidan Clients Oppidan National Map Grocery Development

• 25 Grocery Anchored Developments • Developed of various clients: – Cub Foods/SuperValu –Rainbow – /Nash Finch – Coborn’s – Super Target Cub Foods - Phalen Gold LEED Certified Cub Foods - Phalen Gold LEED Certified Cub Foods - Phalen Gold LEED Certified SuperValu – Pequot Lakes Partnership with Operator SuperValu – Pequot Lakes Partnership with Operator Challenges Ahead

• Competition from everyone.

• Declining profit margins for operators.

• Increasing construction costs.

• Limited shop tenant market. A Grocery Perspective: There’s More To Grocery Than Food

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