SUPERVALU focusing corporate retail operations in key markets
Under its planned restructuring efforts to exit non-core retail markets, SUPERVALU will close its 19-store Laneco group of supermarkets and supercenters, operating in the Lehigh Valley area of Pennsylvania and New Jersey, and 11 Cub Foods stores in central Indiana.
"By concentrating on markets where we have the best opportunity to succeed and by improving overall returns, we are building a stronger retail organization that will generate long-term growth and improved shareholder value," said Jeff Noddle, SUPERVALU president, chief operating officer, and incoming chief executive officer.
Noddle said that SUPERVALU's commitment to its retail operations is a core element of the company's new platform for growth. The company plans to grow retail square footage by approximately 5 percent for the current fiscal year.
SUPERVALU is accelerating the growth of Save-A-Lot -- the company's successful limited assortment chain -- by adding another 100 to 120 new stores this year, passing the chain's 1,000-store mark. The company also will open 10 to 15 price superstores in key retail markets.
In addition, the company is substantially increasing remodeling activity across its retail network, including upgrading stores throughout its Cub price superstore chain in Illinois and Wisconsin, which, Noddle said, "leverages our position within key markets and should help generate quick and profitable growth."
SUPERVALU announced the latest details of its retail restructuring plans to Laneco and Cub Indiana employees today. The closings will affect about 2,250 SUPERVALU employees. The company will provide job transition support to both its union and non-union employees throughout this transition.
SUPERVALU is working with a number of potential buyers, both food retailers and non-food retailers, for the stores involved in today's announcement. The stores are expected to close in the next 30 to 60 days.
SUPERVALU operates a total of 1,194 stores including licensed locations. At year end, SUPERVALU operated 207 price superstores under the Cub Foods, Shop 'n Save, Shoppers Food Warehouse, Metro and bigg's banners; 905 limited assortment stores, including 727 licensed locations that operate under the Save-A-Lot banner; and 82 other supermarkets, including Farm Fresh, Laneco, Scott's Foods, and Hornbacher's stores.
SUPERVALU also serves as primary supplier to approximately 3,200 supermarkets and 55 Cub Foods franchised locations, while serving as secondary supplier to approximately 2,250 stores. SUPERVALU is the 10th largest supermarket retailer in the country and is this nation's largest food distributor to grocery retailers. At year-end, the company had approximately 62,000 employees.
Forward-looking statements in this news release, if any, are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. SUPERVALU does not undertake to update forward-looking statements made in this news release to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking statements.
Certain important factors could cause results to differ materially from those anticipated by the forward-looking statements, including the impact of changing economic or business conditions, the impact of competition, the nature and extent of the consolidation of the retail food and food distribution industries, the ability to attract and retain customers for the company's food distribution operations and to control food distribution costs, the execution of restructuring activities, the availability of favorable credit and trade terms, food price changes, other risk factors inherent in the food wholesaling and retail businesses and other factors discussed from time to time in reports filed by the company with the Securities and Exchange Commission.
Stores and locations included under SUPERVALU's news release of 5/29/01
19-store Laneco group:
11-store Cub Indiana group:
SOURCE: SUPERVALU INC.