Supervalu Needs to Start Selling
Save-A-Lot and Jewel-Osco would be most attractive to buyers if Supervalu Inc. were to put those assets up for sale as part of the grocer’s restructuring efforts.
That’s part of a Citi Investment Research analyst’s assessment of the Minneapolis-based grocer struggling to emerge from multiple quarters of declining sales, on which the company is currently focusing a system-wide price-slashing campaign.
Jewel-Osco, Supervalu’s Chicago-area chain, could reportedly fetch about $1 billion, while its St. Louis-based hard discount Save-A-Lot banner might net up to $2 billion.
In late July, Supervalu’s board of directors ousted chief executive Craig Herkert, replacing him at the helm with director Wayne Sales as the new CEO. A veteran of Kmart and Canadian Tire, Sales has declared his commitment to turning around the company. Strategies include system-wide cost-cutting, slashing in-store prices and possible sale of parts or all of the company.