Supervalu to Close 60 Underperforming Stores
Supervalu Inc. will close 60 underperforming or non-strategic stores this fiscal year, including 38 in its retail food reporting segment and 22 Save-A-Lot locations.
In the latest move since the ouster of former boss Craig Herkert and the announcement of restructuring plans, the company estimates the closures will generate $80 million to $90 million over the next three years from monetizing owned real estate, eliminating cash operating losses and selling departmental assets. Supervalu owns the real estate for about a third of the stores being closed. Proceeds will be used to reduce outstanding debt and for other general corporate purposes.
The majority of the stores are expected to close before Dec. 1, the end of Supervalu’s fiscal 2013 third quarter.
“These decisions are never easy because of the impact a store closure has on our team members, our customers, and our communities,” said Wayne Sales, Supervalu president, CEO and chairman, adding that the move “reflects our commitment to move with a greater sense of urgency to reduce costs and improve shareholder value.”
Closures will include include 27 Albertsons stores (19 in Southern California, including one previously announced location, and eight in the Intermountain West region), four Acme stores and one previously announced Jewel-Osco location.
http://www.progressivegrocer.com/top-stories/headlines/industry-intelligence/id36181/supervalu-to-close-60-underperforming-stores/
