2010 annual report

RXU stakeholder philosophy
Our “bottom line” ultimately depends on our ability to satisfy all of our stakeholders. Our goal is to balance the needs and desires of our customers, Team Members, shareholders, suppliers, communities and the environment while creating value for all. By growing the collective pie, we create larger slices for all of our stakeholders. Our core values reflect this sense of collective fate and are the soul of our company.

RXU core values
VHOOLQJ the highest quality natural and organic products available VDWLVI\LQJ and delighting our customers VXSSRUWLQJ Team Member happiness and excellence FUHDWLQJ wealth through profits and growth FDULQJ about our communities and our environment FUHDWLQJ ongoing win-win partnerships with our suppliers SURPRWLQJ the health of our stakeholders through healthy eating education

OHWWHU WR stakeholders

Dear Fellow Stakeholders: In 2010, we successfully emerged from the most challenging year in our company’s history to produce strong results for all of our stakeholders. Building on the strategic decisions we made during the recession, we capitalized on the improving economy and the increasing confidence of consumers, quickly gaining back customers at a much faster rate than our competitors. We continued to strike the right balance between driving sales, improving our value image, and maintaining gross margin. For the fiscal year, we produced a 12% increase in sales to $9.0 billion driven by 7% comparable store sales growth; EBITDA increased 29% to $714 million, and diluted earnings per share increased 69% to $1.43. Our better-than-expected sales and earnings drove an 84% increase in our stock price during the calendar year--what a great way to celebrate our company’s 30th anniversary! We are proud of our performance which we largely attribute to our successful efforts in improving