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In a move designed to free up capital for strengthening its business, Supervalu Inc. is selling the majority of the fuel centers under its Albertsons, Cub Foods, Hornbacher’s and Jewel-Osco banners.
In all, 107 fuel centers in the Minnesota-based grocer’s Midwest, Intermountain West and West Coast regions are being sold in four separate deals, expected to be finalized this fall. The transactions include partnership opportunities that will allow Supervalu to continue offering fuel rewards programs through these existing fuel centers and, in most markets, an expanded network of fuel centers.
“As we execute on our strategic plan, we are continually reviewing all areas of our business to identify opportunities to strengthen our market position, reduce costs or generate capital that can be reinvested into the business,” said Pete Van Helden, Supervalu’s executive VP of retail operations. “These transactions help us further execute on our transformation plan, while also creating an opportunity for us to partner with major fuel retailers to bring broader fuel rewards programs to our customers.”
Tesoro will purchase 51 Albertsons fuel centers located in California, Nevada, Oregon, Utah, Washington, Wyoming and Idaho. Couche-Tard/Circle K will purchase 27 Jewel-Osco fuel centers, primarily in the Chicago metropolitan area. Holiday Stationstores will purchase 15 fuel centers – eight from Cub Foods in Minnesota, two from Hornbacher’s in North Dakota and five from Albertsons in Montana. Stinker will purchase 14 Albertsons fuel centers in Southern Idaho.
Supervalu, which currently operates 134 fuel centers across its operations, will continue to operate 27 fuel centers not involved in these deals while continuing to seek potential buyers for them.
Supervalu operates 4,290 stores composed of 1,107 traditional retail stores, including 801 in-store pharmacies; 1,283 hard-discount stores, of which 907 are operated by licensee owners; and 1,900 independent stores serviced primarily by the company’s traditional food distribution business.