NOTE 14—SEGMENT INFORMATION
Refer to the Consolidated Segment Financial Information for financial information concerning the Company’s operations and financial position by reportable segment.
The Company’s operating segments reflect the manner in which the business is managed and how the Company allocates resources and assesses performance internally. The Company’s chief operating decision maker is the Chief Executive Officer.
The Company offers a wide variety of grocery products, general merchandise and health and beauty care, pharmacy, fuel and other items and services. The Company’s business is classified by management into three reportable segments: Retail Food, Save-A-Lot and Independent Business. These reportable segments are three distinct businesses, each with a different customer base, marketing strategy and management structure. The Company reviews its reportable segments on an annual basis, or more frequently if events or circumstances indicate a change in reportable segments has occurred.
The Retail Food segment derives revenues from the sale of groceries at retail locations operated by the Company. The Save-A-Lot segment derives revenues from the sale of groceries at retail locations operated and licensed by the Company (both the Company’s own stores and stores licensed by the Company to which the Company distributes wholesale products). The Independent Business reportable segment derives revenues from wholesale distribution to independently owned retail food stores, mass merchants and other customers (collectively referred to as “independent retail customers”). Substantially all of the Company’s operations are domestic.
The Company offers a wide variety of nationally advertised brand name and private-label products, primarily including grocery (both perishable and nonperishable), general merchandise and health and beauty care, pharmacy and fuel, which are sold through the Company’s owned and licensed and franchised retail stores to shoppers and through its Independent Business to independent retail customers. The amounts and percentages of Net sales for each group of similar products sold in the Retail Food, Save-A-Lot and Independent Business segments consisted of the following:
| 2013 | 2012 | 2011 | ||||||||||||||||||||||
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Retail Food: |
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Nonperishable grocery products (1) |
$ | 2,689 | 16 | % | $ | 2,820 | 17 | % | $ | 2,938 | 17 | % | ||||||||||||
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Perishable grocery products (2) |
1,428 | 8 | 1,461 | 8 | 1,508 | 8 | ||||||||||||||||||
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Pharmacy products |
512 | 3 | 483 | 3 | 465 | 3 | ||||||||||||||||||
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Fuel |
77 | — | 126 | 1 | 110 | 1 | ||||||||||||||||||
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Other |
30 | — | 31 | — | 33 | — | ||||||||||||||||||
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| 4,736 | 27 | % | 4,921 | 29 | % | 5,054 | 29 | % | ||||||||||||||||
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Save-A-Lot: |
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Nonperishable grocery products (1) |
$ | 2,865 | 17 | % | $ | 2,925 | 17 | % | $ | 2,705 | 15 | % | ||||||||||||
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Perishable grocery products (2) |
1,330 | 8 | 1,296 | 7 | 1,185 | 7 | ||||||||||||||||||
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| 4,195 | 25 | % | 4,221 | 24 | % | 3,890 | 22 | % | ||||||||||||||||
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Independent Business: |
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Product sales to independent retail customers |
$ | 8,160 | 48 | % | $ | 8,194 | 47 | % | $ | 8,400 | 49 | % | ||||||||||||
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Services to independent retail customers |
6 | — | — | — | 13 | — | ||||||||||||||||||
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| 8,166 | 48 | % | 8,194 | 47 | % | 8,413 | 49 | % | ||||||||||||||||
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Net sales |
$ | 17,097 | 100 | % | $ | 17,336 | 100 | % | $ | 17,357 | 100 | % | ||||||||||||
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| (1) | Includes such items as dry goods, general merchandise, health and beauty care, beverages, dairy, frozen foods, and candy |
| (2) | Includes such items as meat, produce, deli and bakery |