According to industry analysts, all three divisions of Supervalu—including its wholesale division, its conventional retail banners and discount grocer Save-A-Lot—experienced challenges in its first quarter, as the Minneapolis-based company reported sales and earnings that triggered a stock price nosedive of more than 12 per cent.
Despite a 4 per cent decline in revenues in the quarter, the company remained optimistic due to its acquisition of the Marsh Supermarkets wholesale account and promising results from new initiatives at Save-A-Lot.
However, the company’s retail division saw quarterly comps decline by 4.5 per cent, despite pricing and promotional investments at its Cub Foods, Farm Fresh, Hornbacher’s, Shoppers, and Shop n’ Save banners.
Supervalu CEO Mark Gross says that the company’s approach to improving retail involves investing behind “elements of customer satisfaction,” including operations and product selection.
“In our conventional retail division, other retailers are making better offerings [in terms of products available and price],” he says. “We’re finding that you have to [cater to those needs] to succeed in this business.”
In previous months, Gross outlined five initiatives designed to improve results in retail, including lowered prices and aggressive promotions.
