About Supervalu Inc.

SUPERVALU understands the lure of a good deal. The company offers wholesale grocery distribution and logistics services to about 1,900 independent retailers and more than 180 military commissaries in the US and overseas. It supplies brand-name and private-label goods in every price range. SUPERVALU's retail operations include more than 200 regional grocery stores under the Cub Foods, Shoppers Food & Pharmacy, Shop 'n Save, Farm Fresh, Hornbachers, and Rainbow banners. All told, the company covers about 40 US states from nearly 20 distribution centers. In 2016 the company sold its Save-A-Lot grocery stores to investment firm Onex Corp. for $1.36 billion in cash.

Operations

SUPERVALU generates more than 60% of its revenue from its wholesale business which involves distribution and logistics operations. It serves 1,800 retail customers in 40 states from about distribution centers. SUPERVALU's wholesale customers include conventional and upscale supermarkets, combination food and drugstores, supercenters, convenience stores, limited assortment stores, and e-tailers. SUPERVALU offers its retailers private labels in every price range and in virtually every store category, from the value-priced Shoppers Value brand to the premium Preferred Selection and organic Wild Harvest lines. SUPERVALU also offers retailers support services, such as information technology, store design and construction.

Retail food, or all the regional grocery stores, includes nearly more than 200 stores and contributes more than 30% of revenue.

In 2016 the company sold Save-A-Lot to private equity firm Onex Corp. for $1.36 billion. Under SUPERVALU's ownership, the 1,330 owned and licensed Save-A-Lot grocery stores held the #1 spot by revenues in the extreme-value grocery category and operated in nearly 40 states.

Geographic Reach

SUPERVALU's headquarters is in Minnesota and its distribution business serves most of the nation and military commissaries in the US, Puerto Rico, the Azores, Cuba, Guam, Korea, Japan, and in Europe.

Financial Performance

After five years of revenue in the $17 billion range, SUPERVALU's revenue fell to $12.5 billion in 2017 (ended February). The 28% drop from 2015 reflected the company's sale of its Save-A-Lot operations. SUPERVALU also had lower sales in its wholesale and retail operations without including the Save-A-Lot business. The reduced revenue included loss of some categories supplied to some stores, lower sales to existing stores, and lower military sales. SUPERVALU picked up revenue from new customers and new stores opened by existing customers. In retail, same store sales fell on lower customer counts, lower average basket size, and the impact of closed stores.

The sale of Save-A-Lot boosted SUPERVALU's earnings to about $650 million in 2016, a 265% jump from 2015.

Cash flow from operations rose to $308 million in 2017 from $245 million in 2016 because of lower levels of cash used in operating assets and liabilities.

Strategy

After selling its Save-A-Lot chain to Onex Corp. for $1.36 billion, SUPERVALU looks to build its wholesale business while shoring up its retail business. The company is working on retaining existing customers and expanding its business with them as well as finding new customers. The company said it kept about 99% of its customers in 2017 (ended February) and cited Fresh Market as a new customer of its wholesale operations.

Two acquisitions also strengthened the wholesale business geographically. SUPERVALU acquired Unified Grocers on the West Coast and Associated Grocers of Florida.

In retail, SUPERVALU is building its stock to meet customers' preferences and offer more customization. The company also will emphasize its private Culinary Circle and Wild Harvest.

Mergers and Acquisitions

In October 2017 SUPERVALU agreed to acquire Associated Grocers of Florida for about $180 million. The deal opens Associated Grocers' customers in South Florida, the Caribbean, and international markets to SUPERVALU. The company also reached a long-term supply agreement with Associated Grocers' largest customer. The transaction was expected to close by the end of 2017.

Earlier in 2017 SUPERVALU acquired wholesale grocery distributor Unified Grocers in a deal valued at about $390 million, including outstanding stock and debt. Acquiring Unified Grocers bolsters SUPERVALU's distribution network in the western US, where the wholesale distributor operated prior to the acquisition. Later that year it agreed to pay about $180 million for grocery distributor Associated Grocers of Florida, which will expand SUPERVALU's reach in Florida, as well as the Caribbean and Central and South America.

SUPERVALU also expanded its wholesale business in 2016 by acquiring 22 Food Lion grocery stores that were sold in connection with the merger between Ahold and Delhaize. The 22 Food Lion stores are in northern West Virginia, western Maryland, south central Pennsylvania, and northwestern Virginia. The acquired stores were converted to SUPERVALU's Shop 'N Save format.

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Supervalu Inc.

11840 Valley View Rd
Eden Prairie, MN 55344-3643
Phone: 1 (952) 828-4000
Fax: 1 (952) 828-8998

Stats

  • Employer Type: Public
  • Stock Symbol: SVU
  • Stock Exchange: NYSE
  • CEO: Mark Gross
  • Chairman: Gerald L. Storch
  • EVP, Chief Strategy Officer and Interim CFO: Rob N. Woseth
  • 2017 Employees: 29,000

Major Office Locations

  • Eden Prairie, MN
  • Minneapolis, MN

Other Locations

  • Anniston, AL
  • Ozark, AL
  • Texarkana, AR
  • Phoenix, AZ
  • Fresno, CA
  • Livermore, CA
  • Los Angeles, CA
  • Poway, CA
  • Santa Fe Springs, CA
  • Stockton, CA
  • Temecula, CA
  • Tustin, CA
  • Valencia, CA
  • Whittier, CA
  • Fountain, CO
  • Hartford, CT
  • Bradenton, FL
  • Fort Myers, FL
  • Miami, FL
  • Plant City, FL
  • Quincy, FL
  • Sarasota, FL
  • Lithia Springs, GA
  • Waterloo, IA
  • Boise, ID
  • Alton, IL
  • Bartlett, IL
  • Belleville, IL
  • Chicago, IL
  • Collinsville, IL
  • Crystal Lake, IL
  • Darien, IL
  • East Alton, IL
  • East Saint Louis, IL
  • Edwardsville, IL
  • Elgin, IL
  • Elk Grove Village, IL
  • Elmhurst, IL
  • Evanston, IL
  • Franklin Park, IL
  • Freeport, IL
  • Glenview, IL
  • Granite City, IL
  • Highland Park, IL
  • Itasca, IL
  • Jerseyville, IL
  • La Grange Park, IL
  • Lombard, IL
  • Mchenry, IL
  • Melrose Park, IL
  • Mundelein, IL
  • Oglesby, IL
  • Palos Park, IL
  • Peoria, IL
  • Romeoville, IL
  • Saint Charles, IL
  • Springfield, IL
  • Tinley Park, IL
  • Urbana, IL
  • Wheaton, IL
  • Wood River, IL
  • Fort Wayne, IN
  • Kokomo, IN
  • South Bend, IN
  • Lawrence, KS
  • Louisville, KY
  • Murray, KY
  • Vanceburg, KY
  • Hammond, LA
  • La Place, LA
  • Chelsea, MA
  • Hanson, MA
  • Indian Orchard, MA
  • Springfield, MA
  • Wareham, MA
  • Worcester, MA
  • Annapolis, MD
  • Baltimore, MD
  • Bowie, MD
  • Brentwood, MD
  • California, MD
  • Capitol Heights, MD
  • College Park, MD
  • Crofton, MD
  • Forestville, MD
  • Germantown, MD
  • Hagerstown, MD
  • Hyattsville, MD
  • Kensington, MD
  • Landover, MD
  • Lanham, MD
  • Laurel, MD
  • Millersville, MD
  • New Carrollton, MD
  • Olney, MD
  • Oxon Hill, MD
  • Pasadena, MD
  • Severn, MD
  • Silver Spring, MD
  • Smithsburg, MD
  • Takoma Park, MD
  • Waldorf, MD
  • Westminster, MD
  • Houlton, ME
  • Hastings, MI
  • Ithaca, MI
  • Muskegon, MI
  • Arden Hills, MN
  • Brainerd, MN
  • Brooklyn Park, MN
  • Buffalo, MN
  • Burnsville, MN
  • Cambridge, MN
  • Champlin, MN
  • Chanhassen, MN
  • Cottage Grove, MN
  • Duluth, MN
  • Elk River, MN
  • Excelsior, MN
  • Forest Lake, MN
  • Grand Rapids, MN
  • Hastings, MN
  • Hopkins, MN
  • Inver Grove Heights, MN
  • Lakeville, MN
  • Mankato, MN
  • Maple Grove, MN
  • Minnetonka, MN
  • Monticello, MN
  • Moorhead, MN
  • Northfield, MN
  • Rochester, MN
  • Rogers, MN
  • Rosemount, MN
  • Saint Paul, MN
  • Savage, MN
  • Shakopee, MN
  • Stillwater, MN
  • Willmar, MN
  • Arnold, MO
  • Ballwin, MO
  • Fenton, MO
  • Festus, MO
  • Florissant, MO
  • Hazelwood, MO
  • High Ridge, MO
  • O Fallon, MO
  • Saint Ann, MO
  • Saint Charles, MO
  • Saint Louis, MO
  • Saint Peters, MO
  • Union, MO
  • Horn Lake, MS
  • Indianola, MS
  • Ruleville, MS
  • Winona, MS
  • Billings, MT
  • Great Falls, MT
  • Sidney, MT
  • Elizabeth City, NC
  • Bismarck, ND
  • Fargo, ND
  • Grand Forks, ND
  • Omaha, NE
  • Nashua, NH
  • Elizabeth, NJ
  • Potsdam, NY
  • Ashland, OH
  • Cincinnati, OH
  • Columbus, OH
  • Kenton, OH
  • Enid, OK
  • Portland, OR
  • Bethel Park, PA
  • Chambersburg, PA
  • Denver, PA
  • Downingtown, PA
  • Exton, PA
  • Greensburg, PA
  • Malvern, PA
  • Morrisville, PA
  • New Stanton, PA
  • Philadelphia, PA
  • Pittsburgh, PA
  • Waynesboro, PA
  • West Mifflin, PA
  • Barrington, RI
  • North Charleston, SC
  • Memphis, TN
  • San Antonio, TX
  • Watauga, TX
  • North Salt Lake, UT
  • Alexandria, VA
  • Berryville, VA
  • Burke, VA
  • Centreville, VA
  • Chantilly, VA
  • Chesapeake, VA
  • Dumfries, VA
  • Fairfax, VA
  • Falls Church, VA
  • Franklin, VA
  • Fredericksburg, VA
  • Front Royal, VA
  • Grafton, VA
  • Hampton, VA
  • Hayes, VA
  • Herndon, VA
  • Lorton, VA
  • Manassas, VA
  • Mechanicsville, VA
  • Newport News, VA
  • Norfolk, VA
  • Poquoson, VA
  • Portsmouth, VA
  • Purcellville, VA
  • Richmond, VA
  • Smithfield, VA
  • Stafford, VA
  • Stephens City, VA
  • Sterling, VA
  • Suffolk, VA
  • Virginia Beach, VA
  • Williamsburg, VA
  • Winchester, VA
  • Woodbridge, VA
  • Williston, VT
  • Seattle, WA
  • Tacoma, WA
  • Tukwila, WA
  • Beloit, WI
  • Eau Claire, WI
  • Green Bay, WI
  • Pleasant Prairie, WI
  • Stevens Point, WI
  • Wausau, WI
  • Gassaway, WV
  • Harrisville, WV
  • Hedgesville, WV
  • Kearneysville, WV
  • Martinsburg, WV
  • Parkersburg, WV
  • Parsons, WV
  • Philippi, WV
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