"We believe this bodes well for our industry's long-termprospects," said Jeff Noddle, Supervalu's chairman and chiefexecutive officer, during the company's first-quarter conferencecall. Additionally, the chain will close 50 stores during the yearand open about 110 locations. Last year Supervalu renovated 80stores and opened about 110.

The quarter, which ended June 16, marked the one-yearanniversary of Supervalu's acquisition of $11.3 billion acquisitionof about 1,100 Albertsons units. Same-store sales at the Albertsonsstores rose 1.7%, while the company's previously-owned chainsinched up 0.4%.

The non-Albertsons stores, which number just less than 1,300 andinclude stores with the banners Save-A-Lot, Jewel-Osco, Shaw's andothers, were hurt by cannibalization, Noddle says. Consumers arealso feeling pressure from rising inflation and fuel costs, hepoints out.