SuperValu is making another rumble about its retail division.http://www.supermarketnews.com/retail-f ... -struggles
- They're putting capital into Hornbacher's/Cub Foods and will add new stores. While it's nice not to see them just sit by while Hy-Vee continues to dig into the Twin Cities, it could also mean that SuperValu's end goal is selling off the chain and are just making it more attractive to suitors.
- They mention that Shop n Save East (Food Lion) was performing "below expectations" sales-wise. Show of hands, anyone actually surprised at this?
- It is mentioned that SuperValu has recently acquired a Harrisburg, Pa. warehouse. I want to say it was acquired from C&S (didn't they have a DC there?) but I can't find anything. It is to functionally replace Lancaster, since Albertsons is taking back its ACME warehouse.
- They mention that underperforming stores will be "sold" (as opposed to "closed") but I doubt that any big grocers would want to take on failed stores.
- They still brag about acquiring Marsh's account, even as the wheels start to fall off that chain. Speaking of which, we get this intriguing little comment:
Asked by an analyst about Marsh’s financial deterioration, Gross said, “Marsh is paying our bills on time, period,” and declined to comment further, other than to say it would be able to manage through whatever loss in volume it incurs.
...which means SuperValu isn't particularly confident in Marsh's future. If SuperValu has that much tied up in Marsh, then there's a chance that they'll get it when it goes bankrupt, but the comment speaks otherwise.
- Despite the major spin-off of SAL, they're losing more money from ending the Albertsons contract then they're gaining from the SAL contract, and the SAL contract is at the beginning of its lifespan.