Supervalu Earnings Slip; Remodels Help Sales

MINNEAPOLIS–Despite a disappointing quarter, Supervalu is seeing the benefits of its $1 billion remodeling program, as sales are higher at the renovated units, executives said at the company’s second quarter conference call.

In the period the company completed 42 major remodels, 2 minor remodels and 1 new traditional supermarket. For the year, Supervalu plans 155 major store remodels, and opening 14 to 15 traditional supermarkets and 45 to 55 limited assortment stores, which focus more on prepared foods.

“This is where the consumer is going,” said Jeff Noddle, chairman and CEO. “They want value, but they are still time-starved. Our industry is well positioned as people move down from restaurants. Our opportunity is clearly in front of us.”

Sales for the quarter were $10.2 billion, flat compared to the same period last year. Identical-store sales dropped 1.3%. Net earnings were $128 million compared to $148 million last year.

Supervalu has approximately 2,500 retail grocery locations around the United States.