In all, Supervalu plans to invest approximately $950 million on new and remodeled stores, excluding $150 million spent in the first quarter by Albertson's before the acquisition closed. By year-end, the chain will have opened 35 to 40 standard-sized stores and 50 to 75 limited assortment units, as well as 80 major remodels, said chairman and CEO Jeff Noddle. That figure includes new units and remodels completed by Albertson's prior to the acquisition.
"We are actively investing in new stores and remodels," Noddle said. "We believe that new stores and customer-centric remodels are our best opportunity to grow market share and generate sales."
In the first half of the year, Supervalu opened 36 new stores and completed 18 major remodels. New markets for the chain include introducing Save-a-Lot into the Pacific Northwest, and Bristol Farms' debut in San Francisco.
Supervalu operates under the brands ACME, Albertson's, bigg's, Bristol Farms, Cub Foods, Farm Fresh Food and Pharmacy, Hornbacher's, Jewel, Save-A-Lot, Scott's Food & Pharmacy, Shaw's/Star Market, Shop 'n Save, Shoppers Food & Pharmacy, Sunflower Market, and various in-store pharmacies across the United States.
"Our diverse portfolio of retail formats will allow us to address the full spectrum of grocery shopping preferences," Noddle added.
For the second quarter of fiscal 2007, the chain posted record net sales of $10.7 billion compared to $4.6 billion last year, reflecting its $11.3 billion acquisition of Albertson's units, which effectively doubled the company's store count to 2,504 stores. The chain also posted record net income of $132 million, compared to $33.8 million last year. Identical-store sales were essentially flat.
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