X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

MINNEAPOLIS-Determined after a comprehensive review to become “America’s neighborhood grocer,” Supervalu will now use and expand its brands in an integrated–rather than geography-specific way–to enhance its growth, executives said in the company’s second quarter conference call. One result will be the doubling of Save-A-Lot stores over the next five years.

Brands that may not have appeared in a given market may thus make debuts if their niche is appropriate, said Craig Herkert, CEO and president, using Chicago as a case in point.

“Jewel Osco has 185 stores and a 36% market share, and while it’s a real local favorite, it may not always be the best format to serve every market,” Herkert said. “Some customers might find Save-A-Lot a more appealing offering.”

The discount format will be expanded rapidly, he added, including rural areas and existing markets. Growth will primarily come through franchisees.

“We will open 50 new stores this year, and have 100 projects already in the pipeline for next year,” Herkert said. “There is a broad opportunity in the United States demographically.”

The individual brands will be maintained, but with an increasing commonality of presentation where appropriate to leverage costs.”This is not an abandonment of traditional grocery,” Herkert said.

Second-quarter net sales were $9.5 billion, down 6.9% from the same period last year. Identical-store sales declined 4.8%. Net earnings were $74 million, down from earnings of $128 million in the year-ago quarter.

Supervalu has approximately 4,300 stores composed of approximately 1,200 traditional and premium stores, including 850 in-store pharmacies; 1,180 hard discount Save-A-Lot stores, of which 860 are operated by licensee owners; and 1,920 independent stores serviced primarily by the company’s traditional food distribution business.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.