Supervalu acquires AG of Florida

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cathandler
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Supervalu acquires AG of Florida

Post by cathandler » October 19th, 2017, 11:11 pm

Yet another indication that SVU is doubling down on its core wholesale business even as its retail operations continue to struggle.
http://www.supermarketnews.com/retail-f ... ag-florida

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Re: Supervalu acquires AG of Florida

Post by Knight » October 22nd, 2017, 7:35 pm

I project SuperValu to exit from retail operations to focus solely on wholesale.

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Re: Supervalu acquires AG of Florida

Post by pseudo3d » October 22nd, 2017, 10:00 pm

Knight wrote:
October 22nd, 2017, 7:35 pm
I project SuperValu to exit from retail operations to focus solely on wholesale.
But who would buy their holdings?

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wnetmacman
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Re: Supervalu acquires AG of Florida

Post by wnetmacman » October 23rd, 2017, 5:10 am

pseudo3d wrote:
October 22nd, 2017, 10:00 pm
But who would buy their holdings?
Supervalu operates less than 200 stores, including 6 Hornbachers, around 45 Shop 'n Save, 56 Shopper's Food, 40 Farm Fresh and 46 Cub stores. These are all geographically isolated in such a way that they would probably go to regional operators. It wouldn't be a huge impact to lose them.

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Re: Supervalu acquires AG of Florida

Post by Knight » October 23rd, 2017, 8:20 am

Farm Fresh and Shoppers could be the next retail banners SuperValu divests. Both supermarkets operate stores in Virginia, where supermarket Publix will continue to further expand.

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Re: Supervalu acquires AG of Florida

Post by BillyGr » October 23rd, 2017, 8:50 am

wnetmacman wrote:
October 23rd, 2017, 5:10 am
pseudo3d wrote:
October 22nd, 2017, 10:00 pm
But who would buy their holdings?
Supervalu operates less than 200 stores, including 6 Hornbachers, around 45 Shop 'n Save, 56 Shopper's Food, 40 Farm Fresh and 46 Cub stores. These are all geographically isolated in such a way that they would probably go to regional operators. It wouldn't be a huge impact to lose them.
And it seems a good possibility that in smaller groups like that, whoever took them would be (at least somewhat) likely to still have Supervalu be the supplier, so that they wouldn't really lose anything.

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wnetmacman
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Re: Supervalu acquires AG of Florida

Post by wnetmacman » October 23rd, 2017, 9:12 am

BillyGr wrote:
October 23rd, 2017, 8:50 am
And it seems a good possibility that in smaller groups like that, whoever took them would be (at least somewhat) likely to still have Supervalu be the supplier, so that they wouldn't really lose anything.
Exactly.
Shop 'N Save is based out of St. Louis, with stores in IL and MO
Hornbachers is in Fargo, ND
Farm Fresh operates in NC and southern VA, roughly
Shoppers operates in DC, northern VA and Baltimore
Cub is in MN and WI.

Each of these are distant enough from the others (beyond Shoppers/Farm Fresh) that they could be sold to pretty much anyone without causing a stir. I could see SnS going to someone like Albertsons or Kroger, as both have operated in that area. Shoppers could go to anybody. Cub and Hornbachers is a toss-up. Several others (like Publix) could take these over as a way into certain areas.

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Re: Supervalu acquires AG of Florida

Post by Knight » October 23rd, 2017, 10:19 am

I could see Publix acquiring a quantity of Farm Fresh and Shoppers store locations in Virginia, Maryland, and the District of Columbia to get into and increase store count in the Washington and Hampton Roads metropolitan areas. Like ten former Martin's stores, acquired stores would close, undergo remodel or tear down and rebuild, and reopen as Publix stores.

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