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 •Red Owl • National Tea • 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 Costco Sam’s Club Dollar General Dollar Tree Family Dollar United Noodles Target Wal*Mart Aldi 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 Retail Food Industry Center, University Of Minnesota. 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 supermarkets – 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 Cub Foods: #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 – Econofoods/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 Questions & Answers .