Search
 

Supervalu Cuts CapEx, Sells Stores

MINNEAPOLIS-The retailer's focus is now on execution rather than growth, says its new chief executive officer.

By Debra Hazel | Updated on July 29, 2009

MINNEAPOLIS-Supervalu continues to downsize, announcing plans to cut capital expenditures by $50 million as well as the sale of 36 Utah stores, executives said at the company’s first quarter conference call.

Capital spending is projected to be approximately $700 million, which will include 65 to 70 major store remodels, 25 to 30 minor remodels, opening three new traditional supermarkets and 45 to 55 new limited assortment stores, including 30 licensed stores. However, it still plans to close 25 stores annually. The decision to cut capital expenditures was driven by inadequate returns on new and renovated stores, said Craig Herkert, the company’s new CEO.

“Our focus is on execution, not on the physical condition of our stores,” Herkert said.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.