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MINNEAPOLIS - Supervalu Inc. today announced advances in its extreme value retail strategy in its Southeast market with the acquisition of nine Save-A-Lot stores from former licensee Super Discount Markets Inc.
"The Save-A-Lot stores we purchased offer us great opportunity to accelerate the fill in of this market with our own corporate stores," said Jeff Noddle, president and CEO of Supervalu. "We plan to aggressively expand Save-A-Lot over the next five years and growth within this market is a significant component to that strategy."
In addition, Supervalu also announced the closure of operations by SDM, a corporation in which Supervalu holds a minority interest. In conjunction with this transaction, SDM will exit 19 Cub Foods franchised locations in Georgia that SDM has operated since 1985.
Noddle continued, "As the nation's number one extreme value grocery retailer with 940 stores, Save-A-Lot offers significant long term potential. At $4.2 billion in system-wide sales, Save-A-Lot has already doubled its sales twice in the last eight years. Our infrastructure is poised for accelerated growth, and we are committed to realizing the full potential of this breakthrough concept in grocery retailing.
"In total, our retail operations place Supervalu as the 10th largest grocery retailer in the U.S.," added Noddle. "With the acceleration of Save-A-Lot and in-market expansion and remodeling of our price impact store network, we are committed to improve upon that ranking." Through second quarter, which ended September 8, 2001, Supervalu's retail segment represented 43 percent of total company sales and 61 percent of total company operating profits.