Supervalu Nears Albertsons Shift

MINNEAPOLIS-Supervalu executives say that they should close their $12.6-billion acquisition of Albertsons stores by mid June. The deal, announced in late January, will give Supervalu nearly 1,200 of Albertsons’ 2,500 stores.

Additionally, Supervalu management has forecast preliminary capital expenditures of about $1.1 billion this year after the two companies are combined. Throughout its chains the retailer will open about 110 stores, most of them Sav-A-Lot discount-grocery units, which will get 75 new stores. Last year the company opened 68 new stores and closed 85 locations, making its total store count 1,381 across its banners.

While Supervalu is about to complete the sizable transaction, earnings have dropped and sales have been stagnant as of late. During the company’s fourth quarter, which ended Feb. 25, net earnings were $6 million, down from $92.9 million the same year-ago period. Net sales came in flat, at $4.6 billion, and year-over-year same-store sales fell 1.1%.