Become a Save-A-Lot Owner

SAVE-A-LOT IS WELL POSITIONED FOR CONTINUED GROWTH AND PLANS TO STRATEGICALLY DEVELOP LICENSE AND CORPORATE LOCATIONS

A GREAT OPPORTUNITY FROM DAY ONE.

From a single store in 1977, Save-A-Lot has grown into one of the largest U.S. grocery chains. Since

our inception, our objective has been to deliver high-quality foods at a great value to our customers.

While working for a grocery wholesaler in the mid-’70s, company founder Bill Moran identified an

opportunity for small grocers to compete against emerging megastores and created Save-A-Lot’s

limited assortment business model.

When the first store opened in Cahokia, Ill. in 1977, the format was immediately successful. That same

year, General Grocer Co. adopted Moran’s idea of the carefully selected assortment format and opened

five additional stores in the St. Louis, Mo. area. Within a year, Save-A-Lot expanded to 29 locations and

by 1980, Save-A-Lot had added 52 locations and opened a warehouse in Jackson, Tenn.

In 1983, General Grocer sold Save-A-Lot exclusively to Moran. And five years later, Save-A-Lot was

acquired by Wetterau Incorporated, a St. Louis, MO-based food wholesaler and retailer. This was an

exciting time in Save-A-Lot history. Save-A-Lot expanded aggressively including the purchase of 76

Jewel T stores (at the time, one of the other few U.S. grocery store chains with discounted items)

and two additional warehouses, one in Pennsylvania and one in Florida.

In 1993, SUPERVALU INC. acquired Wetterau and with it, Save-A-Lot. Save-A-Lot remains a wholly

owned subsidiary of SUPERVALU (NYSE: SVU).

By offering our customers unbeatable values and giving our independent retailers a smart and simple

business model, today we have grown to over 1,300 stores. And our plans for more growth could

include you. In fact, we are actively looking for experienced retailers and entrepreneurs who are

seeking a new business opportunity.

HISTORY

SPANNING FROM MAINE TO CALIFORNIA, SAVE-A-LOT IS A LEADER IN THE

HARD DISCOUNT, EDITED ASSORTMENT GROCERY STORE INDUSTRY WITH

OVER 1,300 LOCATIONS. BASED ON INDUSTRY RESEARCH, HARD DISCOUNT

OFFERS THE GREATEST GROWTH OPPORTUNITY IN THE $600 BILLION

GROCERY INDUSTRY.

WHY LICENSEES CHOOSE SAVE-A-LOT:

• Exclusive brands: High-quality, low-priced assortment accounts for 80% of Save-A-Lot sales.

• Fewer SKUs (stock keeping units): Reduced SKU assortment covers 90% of everyday shopper needs and provides efficient store operations.

• Low prices: Buying power of over 1,300 stores delivers market-leading

everyday low prices.

• Neighborhood Stores: Whether in an urban, suburban or rural market, we locate stores in diverse neighborhoods, hire from within those communities and stock product tailored to the neighborhood.

• Shopping experience: Our smaller stores average 15,000 sq. ft. and allow for a quick and easy shopping experience.

• World-class distribution: Best-in-class, dedicated distribution provides our retailers on-time delivery and works aggressively to prevent out of stock items.

GUIDING PRINCIPLE

Our guiding principle is to be consumer centric. The consumer guides us in everything

we do. While we are always mindful of costs and efficiencies, in the end, our

decisions and actions are guided by how we can best meet the needs and wants

of the value-seeking consumer.

BUSINESSMODEL

OUR GUIDING PRINCIPLE IS TO BE CONSUMER CENTRIC

SAVE-A-LOT OFFERS SHOPPERS UP TO 40% SAVINGS ON THE GROCERY ITEMS THEY NEED EVERY DAY

WE HELP OUR CUSTOMERS LIVE RICHER, FULLER LIVES BY HELPING

THEM SAVE MONEY AND TIME.

As a leader in the growing hard discount grocery industry, Save-A-Lot at-

tracts and targets an economically challenged demographic that conven-

tional grocers sometimes overlook. We believe that everyone deserves access

to affordable, nutritional, high-quality food.

Whether it’s a budgeting family that wants healthy food or senior citizens

that need to buy diet-specific foods, Save-A-Lot offers up to 40% off on the

things they need every day. Our bright, inviting stores are also located in the

neighborhoods they live in. These convenient locations, great savings and

exceptional customer service are what keep our customers coming back.

THE SAVE-A-LOTSHOPPER

SINGLE STORE, MULTI-STORE OR CONVERSION; THERE’S OPPORTUNITY FOR

EXPANSION IN THE U.S. AND CARIBBEAN ISLANDS.

Save-A-Lot actively and strategically grows the store base to raise consumer

awareness and strengthen the many benefits that buying in scale offers our

retailers and customers. This, in turn, provides more growth opportunities

for the entire chain.

Targeting underserved areas is the hallmark of Save-A-Lot’s growth strategy.

The store base is growing in three ways:

• Recruiting experienced business owners and retailers to become

independent, licensed owners/operators

• Converting independent grocery stores and potential acquisitions

• Building new corporate stores

In addition to growing in numbers and market share, Save-A-Lot provides

ongoing operations and marketing support to increase the sales and profits

of existing locations to ensure every Save-A-Lot store keeps up with the times

and stays ahead of the competition.

GROWTH

TARGETING UNDERSERVED AREAS IS THE HALLMARK OF SAVE-A-LOT’S GROWTH STRATEGY

OVER 70% OF ALL SAVE-A-LOT STORES ARE OWNED BY INDEPENDENT RETAILERS

SAVE-A-LOT WORKS CLOSELY WITH EACH CANDIDATE EVERY STEP OF THE

WAY TO BECOMING AN OWNER. OUR APPROVAL AND DEVELOPMENT

PROCESS WILL ALLOW US TO LEARN MORE ABOUT EACH OTHER AND

ENSURE THAT SAVE-A-LOT IS THE RIGHT OPPORTUNITY FOR YOU.

1. ARRANGE INITIAL CALL TO ANSWER QUESTIONS AND DISCUSS

DEVELOPMENT OPPORTUNITIES.

2. EXECUTE A CONFIDENTIALITY AGREEMENT.

3. COMPLETE AND SUBMIT APPLICATION AND PERSONAL FINANCIAL HISTORY.

4. MEET WITH A SAVE-A-LOT REPRESENTATIVE AND REVIEW THE PROGRAM.

SCHEDULE AN OPTIONAL DISCOVERY DAY VISIT AT OUR ST. LOUIS-BASED OFFICE.

5. FIND A SITE AND CONDUCT DEMOGRAPHIC/MARKET ANALYSIS.

6. DESIGN A STORE LAYOUT WITH OUR ASSISTANCE.

7. ESTIMATE COST AND OBTAIN EQUIPMENT AND CONTRACTOR BIDS.

8. SITE APPROVAL BY THE SAVE-A-LOT BUSINESS UNIT DIRECTOR.

9. INCENTIVE OFFER APPROVAL BY THE SAVE-A-LOT FINANCE DEPARTMENT.

10. ARRANGE FINANCING FOR NEW STORE.

11. SUBMIT A LETTER OF INTENT (LOI) AND NEGOTIATE THE LEASE.

12. BEGIN CONSTRUCTION OR LEASEHOLD IMPROVEMENTS ON LOCATION.

13. ORDER EQUIPMENT/OPENING INVENTORY AND RECRUIT/TRAIN PERSONNEL.

14. YOUR NEW STORE OPENS!

Depending on real estate availability and other factors, this process will take approximately 6 to 12 months to complete.

NEXT STEPS

100 Corporate Office Dr • St. Louis, MO 63045 • (314) 592-9100 • www.save-a-lot.com/own

If you’re an entrepreneur looking for a terrific business opportunity with one of the fastest-growing brands in the retail grocery industry and want to give back to your community, take the first step by visiting save-a-lot.com/own