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Is the New Supervalu a Stronger Supervalu?

March 28, 2013Written by George Anderson

Now that Supervalu has completed the sale of Albertsons, Acme, Jewel-Osco, Shaw's and Star Market stores — and related Osco and Sav-on in-store pharmacies — to AB Acquisition, the question is: what comes next?

The company, which had shifted most of its focus to retail operations in recent years, has now returned to its roots in grocery wholesaling.

"As we move forward, Supervalu will continue as one of the largest wholesale grocery providers in America serving nearly 2,000 independent retailers in 43 states; we plan to continue growing our hard discount Save-A-Lot format that includes over 1,300 stores nationwide; and we will operate five, strong regional retail banners," said Sam Duncan, Supervalu's president and chief executive officer, in a statement last week. "I am pleased to be leading Supervalu during this time of change and strongly believe there is an exciting future ahead for us."

In keeping with its focus on wholesale operations, Supervalu plans to form an advisory council of retailers it supplies to meet three or four times a year, reports Supermarket News.

Among the changes already taking place at Supervalu are job reductions. The company announced it would eliminate roughly 1,100 positions, affecting nearly all its offices and spreading across most departments. Store-level workers and employees at Save-A-Lot, Supervalu's limited assortment grocery format, will not be affected.

"The decision to reduce our workforce, although difficult because of the impacts to our people, is the necessary next step in the rebuilding of our business," Mr. Duncan said. "This move is an important part of our strategy to be more focused and efficient in our operations, including how we staff and support our three business units going forward."

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