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    Supervalu Launches New in-Store Program; Will Invest $1B on 2007 Remodeling

    MINNEAPOLIS -- Supervalu yesterday unveiled its new "Premium Fresh & Healthy" store concept, which was designed to harness local market insight and corporate centers of excellence in merchandising and marketing to enhance the consumer's shopping experience.

    MINNEAPOLIS -- Supervalu yesterday unveiled its new "Premium Fresh & Healthy" store concept, which was designed to harness local market insight and corporate centers of excellence in merchandising and marketing to enhance the consumer's shopping experience.

    The concept, which was revealed at a meeting for investors in New York, is a result of the combined efforts of Supervalu's merchandising, marketing, and store development teams, and will be a part of the company's $1 billion remodeling and new store campaign.

    "Supervalu's Premium Fresh & Healthy program is all about surprising and delighting the customer," said Duncan Mac Naughton, e.v.p., merchandising and marketing. "Our extensive research tells us that grocery retailing today should provide consumers with products that allow them to 'turn the dining room lights back on.' This program seeks to deliver compelling, timely and localized offers at the right price through combined scale, customer insight, and market knowledge."

    Supervalu chairman and c.e.o. Jeff Noddle added, "We can deliver to our customers an in-store experience that leverages our great local retail banner names with some new powerful upgrades in key departments."

    The Premium Fresh & Healthy program is tailored to meet the unique demographics of each individual store. Examples of the concept's modules include:

    --Expanded perishables, including produce, meat, seafood, bakery, and deli departments

    --Shop the World, an international foods destination department

    --Wild Harvest, a store-within-a-store focused on natural and organic products

    --Enhanced and expanded pharmacy and HBC departments to support healthy lifestyles.

    Examples of stores leveraging the Premium Fresh & Healthy program include the Acme store in Doylestown, Pa.; the Shaw's in East Hampton, Conn.; and newly opened Albertsons stores in Las Vegas and San Diego.

    As new stores open, they will incorporate the Premium Fresh & Healthy module, and the majority of major remodels and new stores in the next year will leverage the approach.

    Supervalu operates approximately 2,500 stores, with annual sales approaching $40 billion. The company also provides distribution and related logistics support services to more than 5,000 grocery endpoints across the country.

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