Supermarket News: SUPERVALU eyes potential sale

[retailisking]

The owner of several supermarket banners across the US including Shaw's and Star Market in New England is on the block after terrible first quarter results. Surely a new owner can do better with the #2 supermarket chain in the region - but who? Let the speculation begin...

http://supermarketnews.com/supervalu/supervalu-eyes-potential-sale-q1-well-below-plan

[Zayre88]

What's happening with Shaw's recently?

All I see is store closings, new store getting cancelled and high prices.

[retailisking]

What's happening with Shaw's recently?

All I see is store closings, new store getting cancelled and high prices.

Shaw's seems to be stabilizing a bit compared to the freefall that happened earlier.

Suspending the dividend should have been done long ago, as well as investing in price reductions to build market share (we've heard that song before; we'll see if they really mean it this time.) I'm troubled by the sharply reduced capital expenditures, as Supervalu has lots of aging stores that are badly in need of renovation. For the first time, Supervalu has broken out results for Save-A-Lot instead of consolidating their sales figures with the traditional banners. Unfortunately, S-A-L's same-store sales are also down this quarter compared to last year. It's hard to see how Supervalu can survive in its current form.

Progressive Grocer has stepped up to the plate with more detail about Supervalu's situation and excerpts from the letter to associates:

http://www.progressivegrocer.com/top-stories/headlines/industry-intelligence/id35810/supervalu-charts-new-strategy-reviews-strategic-alternatives/

http://www.progressivegrocer.com/top-stories/special-features/industry-intelligence/id35811/supervalu-ceo-to-associates-strategic-review-not-taken-on-lightly/

[Joeg]

With them pulling out of CT, I think you will see them shut stores in RI(maybe Shoprite will expand??) and NH(Price Chopper or Stop and Shop??)

[retailisking]

With them pulling out of CT, I think you will see them shut stores in RI(maybe Shoprite will expand??) and NH(Price Chopper or Stop and Shop??)

The most credible scenario I've come across involves spinning off Save-A-Lot and using the proceeds to turn around the conventional banners, which by most accounts have little value in their present condition. I think the possibility of this scenario was telegraphed by breaking out results from Save-A-Lot as a separate division in the latest quarterly report.  Presumably any sale of SAL would involve a long-term supply chain contract with SVU.

[retailisking]

Supervalu fired its CEO Sunday and installed the Board Chairman as CEO. Wayne Sales has no supermarket experience, but then again Herkert did and look where that got him. Here's hoping Sales can turn things around; time is not on their side.

http://www.twincities.com/ci_21190962/supervalu-ousts-ceo