DISCUSSION

The new Supervalu CEO is a dealmaker

February 5, 2016Written by George Anderson

Mark Gross, President and CEO, Supervalu (Photo: Supervalu)

Supervalu has named Mark Gross as its new president and chief executive, succeeding Sam Duncan who will retire from the company at the end of the month. Mr. Gross brings with him a reputation as a mergers and acquisitions expert, the apparent right skillset as Supervalu looks to execute its spinoff of the Save-A-Lot business. Mr. Gross worked at C&S Wholesale Grocers from 1997 to 2006 in a number of financial and general management positions. In 2005 and 2006, he was co-president of the company's operations. Following his time at C&S, Mr. Gross founded Surry Investment Advisors, where he guided grocery clients on acquisitions and divestitures and consulted with private equity firms on investments in food retail and distribution. The big question around Mr. Gross's hiring — will he be looking to sell other parts of Supervalu's business once the Save-A-Lot deal is done or will be a buyer at that point? According to a Wall Street Journal article, it's more likely that Mr. Gross will be looking to sell. Supervalu's stock is down 36 percent this year on top of a 30 percent decline in 2015. The valuation of the company could make some of its assets appealing to the right parties. In addition to its core grocery wholesale business and Save-A-Lot, Supervalu owns and operates five supermarket chains with 228 stores in seven states: Cub Foods (80 stores), Farm Fresh (41), Hornbacher's (six), Shop 'n Save (45) and Shoppers (56). In reporting Supervalu's third quarter results last month, current CEO Sam Duncan said that, while earnings were in line with its operating plan, "improving sales is a primary focus" of the company as a whole. Is this something Mr. Gross is able and willing to see through or do he and Supervalu's board have something else is mind?

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