SUPERVALU Diversity

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Darnell Allen Vice President, Diversity and
Inclusion SUPERVALU
SUPERVALU Diversity Inclusion Overview
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About SUPERVALU

• Fortune 50 company
• Fortune Most Admired company
• Third-largest grocery company in the United
  States
• 135 years of industry experience
• Acquisition of premier retail properties from
  Albertsons Inc. on June 2, 2006

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Grocery Retail and Supply Chain Leadership

• A legacy of service and innovation with 36
  distribution centers deliveringbest-in-class
  supply chain services
• Unique blend of retail formats and capabilities
  in geographically and demographically diverse
  markets

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Focus on the Future

• The industry was evolving
• Consolidation Entry of mass and niche
  retailers
• SUPERVALU had a long-term plan to grow retail
  presence through acquisition
• September 2005 The game changes
• Albertsons Inc. announces decision to sell
  assets

We had the opportunity to changethe face of
SUPERVALU andthe grocery landscape
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June 2, 2006 A Monumental Date

• Acquired more than 1,100 premier retail
  properties
• Acme
• Bristol Farms
• Jewel-Osco
• Shaws and Star Markets
• Albertsons in Idaho, Utah, Nevada, Southern
  California
• Sav-On and Osco in-store pharmacies

Top U.S. Grocery Companies Based on Total Sales
Supermarket News Top 75 Grocery Retail,
January 2006. estimated
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A Transformed Retail Powerhouse with Excellent
Future Growth Potential
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Jeff Noddle Chairman CEO, SUPERVALU
We know that driving towards deepening our
understanding of diversity every day is vital to
continuing to serve our customers and our
associates better than anyone else can.
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Diversity and Inclusion Mission Statement

• Our diversity and inclusion strategies and
  initiatives will always
• Meet our customer needs better than anyone else,
  coast-to- coast and border-to-border
• Improve performance and profitability to be the
  best place to invest in our industry
• Build an energetic and productive environment
  where diverse associates, customers and vendors
  are treated with courtesy, dignity and respect
• Leverage talent and resources to be the best
  place to work in our industry

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The Four Pillars of Diversity and Inclusion

• Managing Our Diverse Workforce
• Understanding Differences
• External Marketplace
• Diversity Representation

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Recognition

• 2007 Supermarket News Champion of Diversity
• 100 on 2008 and 2009 Human Rights Campaign
  Corporate Equality Index
• 2008 Twin Cities PRIDE Corporate Achievement
  Award
• Progressive Grocer recognized five of our women
  leaders

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Employee Resource Groups

• What are Employee Resource Groups?
• Groups of associates who participate in
  initiatives and activities with others of a
  similar race, ethnicity, gender or common
  interest
• Benefits of Business Resource Groups
• Foster diversity and inclusiveness within the
  company
• Recruit and retain diverse associates through
  mentoring
• Support and participate in community events
• Assist with marketing activities to drive
  shareholder value
• Offer valuable viewpoints on company projects
  policies

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What is in a Name?
At SUPERVALU, Affinity Groups evolved to
Business Resource Groups

• Employee Resource Group
• Employee Network Group
• Affinity Group

• What is the difference?
• In addition to a shared affinity, Business
  Resource Groups emphasize the value the
  associates provide on the business perspective
  and help leaders and business units proactively
  reach out for assistance from them.

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Business Resource Groups Total Business Resource
Groups Currently 29

• Asian Southern California
• African American/Black So Cal, Home Office
• Hispanic/Latino Southern California, Home
  Office, Boise
• Women So Cal, NW, Boise, Salt Lake City, Shaws,
  ACME, Home Office, Cub, SUPERVALU India
• Multicultural NW, ACME, Jewel-Osco, Northern
  Region, So Cal, Save-A-Lot, Shoppers, MPLS DC,
  Hornbachers, Shop n Save, Las Vegas
• GLBTA Boise, Shaws, Home Office

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2008 Catalyst
The 2008 Catalyst Benchmarking Survey showed that
83 percent of surveyed companies support employee
resource groups.
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Top Business Reasons for Resource Groups

• Reduction in turnover
• Less absenteeism
• Increased associate productivity
• Improved bottom line
• Increased organizational competitiveness
• Require little financial backing

Source www.SHRM.org
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How do you start a Business Resource Group?

• Find a champion and gauge associate interest
• Craft a Mission statement or statement of purpose
• Establish goals both short-term and long-term
• Detail tactics on accomplishing the goals, along
  with a timeline
• Enlist support of an executive sponsor
• Define how the groups mission and goals relate
  to the companys core values

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How do you start a Business Resource Group?

• Provide Structure
• Operating Policy
• Leadership Structure
• Ask for solutions, not just problem
  identification
• Determine how budget dollars will be
• Establish goals around objectives
• Support and further business objectives
• Support recruitment for affinity of the group
• Support the professional development of the
  group
• Contribute to the community
• Increase awareness of diversity

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Resources to support BRGs contributions at
SUPERVALU

• Goals and Objectives
• Event Planning form
• Monthly Webinar meeting
• Annual Diversity Inclusionforum

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How we Communicate

• Monthly Business Resource Group call
• E-mail diversityandinclusion_at_supervalu.com
• Home Office Diversity Inclusion Bulletin Board
• Web site
• Mission statement
• Business Resource Group sites
• Quarterly newsletter

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BRGs are Good for Business

• Business Opportunity Gain increased market share
  with growing segment and buying power of the
  GLBTA community.
• Goal Achieve 100 rating on Human Rights
  Campaign Corporate Quality Index.
• Action Identify gap and communicate the internal
  and external benefits of closing this gap.
• Outcome Addressed gaps with support of senior
  leadership and achieved 100 rating on 2008 HRC
  Corporate Quality Index becoming the first
  grocery chain to do so.

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Final Notes
Successful companies learn to recognize the
potential of Business Resource Groups and to
harness the potential to drive business results.
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2008 NEW Integrating Diversity