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MINNEAPOLIS -- Supervalu Inc. here said yesterday will continue investing in the stores it acquired last year from Boise-based Albertsons, and will also update its own roster of stores, tapping a $1.2 billion capital expenditures pool.
At its annual meeting, the retailer and distributor said it will open 25 to 30 new stores in its next fiscal year, and conduct between 100 and 110 major remodels. It said it expects capital spending to increase to $1.2 billion in fiscal 2008 from $900 million in fiscal 2007.
Next week will mark the one-year anniversary of Supervalu's acquisition of Albertson's, the company added. Supervalu now is a company with $37.4 billion in revenue, versus $19.9 billion just a year ago.
"We are on schedule with our plan to leverage our transformed business model and deliver continued value to our shareholders," said Jeff Noddle, Supervalu's chairman and c.e.o. "We are very well-positioned for the next stage of growth as we implement initiatives designed to further deliver the economics of the acquisition by leveraging our competencies in both retail and supply chain. I am confident that the full potential of the new Supervalu will continue to emerge in the years ahead."
During the meeting, shareholders approved the election of each of Supervalu's directors standing for election for three-year terms expiring in 2010, including: Charles M. Lillis, Jeffrey Noddle, Steven S. Rogers, and Wayne C. Sales. Kathi P. Seifert was elected for a two-year term expiring in 2009; and A. Gary Ames was elected for a one-year term expiring in 2008.
Shareholders approved the company's 2007 stock plan, and also ratified the re-appointment of KPMG LLP as the company's independent auditor. A shareholder proposal for a report on controlled-atmosphere killing was not approved, however.
Separately, Supervalu said it will increase its quarterly dividend by 3 percent, to 17 cents per share, starting in its September quarter. The company will pay a 16.5-cent dividend June 15 to shareholders of record June 1.
Supervalu runs 2,500 retail grocery locations across the country, and also provides distribution and related logistics support services to more than 5,000 grocery endpoints.