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Supervalu Inc. is replacing its mainframe technology infrastructure in a transformation program to reduce costs, improve flexibility and support its strengths as a service provider to more than 2,000 grocery stores.
The new platform, created in partnership with Wayne, Pa.-based custom IT services provider Sungard Availability Services, will offer cloud, backup and other solutions and services to improve operations across the independent retailers it supports. This transition is a critical step in the company's plans to use technology smartly to compete in a demanding and competitive grocery environment.
"We plan to strengthen operations across our enterprise and add shareholder value by transforming our approach to technology," said Chad Mead, chief technology officer at Supervalu. "Technology has become an essential factor in competing in this market, and our planning with Sungard AS suggests that we can build a more flexible and responsive mainframe infrastructure that drives growth. We were impressed by the track record, creativity and commitment Sungard AS demonstrated during our discussions."
The agreement upgrades the technology available to Supervalu without requiring an upfront investment, and it also offers the retailer-wholesaler an opportunity to move many of its workloads into a secure, highly scalable cloud platform. Under this agreement, Supervalu will be able to replace fixed-cost, in-house equipment with variable-cost services that it can scale as needed. The company also can offer a full suite of Sungard AS cloud and recovery services to its retailers on a "white-label" basis, part of the creativity Sungard AS brought to supporting Supervalu's strategic business direction.
Eden Prairie, Minn.-based Supervalu serves customers nationwide through a network of 2,363 stores, including 1,902 stores operated by wholesale customers serviced primarily by the company's food distribution business and 217 traditional retail grocery stores operated under five retail banners in six regions.