Supervalu Assesses Portfolio

MINNEAPOLIS-Supervalu’s management will decide by the fall what changes it will make to its portfolio of stores following the $12.4-billion acquisition in June of about 1,100 Albertsons units. “We are continuing to evaluate all appropriate format modifications, said Jeff Noddle, Supervalu’s chairman and chief executive officer, during the company’s first-quarter conference call.

So far, Supervalu executives has assessed about half of the stores acquired in the Albertsons deal, and they say that the rest will be evaluated by September. They have identified that they will close about 25 under-performing stores acquired in the transaction. Stores in the Albertsons chain the were acquired include units under the Albertsons, Acme Markets, Bristol Farms, Jewel-Osco, Shaw’s Supermarkets and Star Market banners.

Supervalu’s results for the first quarter ended June 17 did not include stores acquired in the Albertsons deal. Same-store sales across its 1,391units, including Cub Foods, Save-A-Lot and other chains, fell 1.8% year over year. Management blames heavy competition in the Cincinnati and Fort Wayne, IN, markets, for the drop.