US: Supervalu to implement pay freeze, cuts benefits
upervalu has been dogged by falling sales and profitability for its last three full financial years
US retailer Supervalu Inc has confirmed plans to implement a pay freeze for all staff at its headquarters in addition to reducing or suspending some benefits.
A spokesperson for the retailer said today (19 November) Supervalu needs to "immediately" take costs out of the business in order to fund its growth. As a result, the retailer has made changes to team member compensation and benefits, given they are "the largest administrative expense".
"After careful analysis, the difficult decision has been made to implement a pay freeze for all store support centre team members and to reduce or suspend the company's match to the 401k plan. These changes will take effect in early 2013 and we will continue to evaluate them based on the company's business results."
Supervalu has been dogged by falling sales and profitability for its last three full financial years and in October the retailer confirmed the trend was continuing when it booked accelerating second-quarter losses.
Earlier this month, the retailer's New England grocery chain, Shaw, announced plans to reduce its workforce by 700.
Supervalu Inc has said CFO Sherry Smith will leave the US retailer next month....
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