Supervalu May Lay Off 1,500 at Shop 'n Save

Supervalu will lay off nearly 1,500 associates across 16 of its Shop 'n Save stores if the locations do not sell in the coming months, the St. Louis Post Dispatch has reported.

The stores set to close are the only ones not being purchased by St. Louis-based grocer Schnuck Markets, the news outlet said.

Earlier this week, Supervalu Inc. said it entered a definitive agreement to sell 19 of its 36 Shop ‘n Save grocery stores, which are mainly located in the St. Louis area, to Schnucks. The sale of stores, 14 of which are in Missouri and five in Illinois, will occur with a staggered close process that is anticipated to wrap up by late next month, subject to customary closing conditions. Union workers at those jobs are being retained by Schnucks.

Supervalu this week notified nearly 1,500 employees at unsold stores in Missouri and Illinois of their "imminent termination," the news outlet reported. An additional 50 associates at Shop 'n Save's headquarters in Kirkwood, Mo., also were given notices.

Supervalu operates a network of 3,606 stores consisting of 3,495 wholesale primary stores operated by customers serviced by the company’s food distribution business and 111 grocery stores under three retail banners in three geographic regions, with about 23,000 employees. The company is No. 18 on Progressive Grocer’s 2018 Super 50 list of the top grocers in the United States.

Schnucks operates 99 stores in Missouri, Illinois, Indiana, Wisconsin, and Iowa, employing more than 13,000 associates. The company is No. 31 on Progressive Grocer's Super 50 ranking of the top grocers in the United States.