Blog: The hard road ahead for US retail giant Supervalu
Dean Best | 13 April 2012
Supervalu, one of the largest retailers in the US, has had a tough few years and, although CEO and president Craig Herkert is trying to turn the company around, industry watchers believe it will be a challenge for the former Wal-Mart Stores executive.
This week, Supervalu reported its annual financial results and, for the third year running, gross profit, sales and identical-store sales fell.
Herkert, who joined Supervalu in 2009, insisted there were signs of improvement at the retailer, which is part-way through a "transformation programme". Over the last 12 months, Herkert said, Supervalu had a built a "strong foundation" and he expects "another year of solid progress" at the retailer.
However, Wall Street is unsure about Supervalu's prospects. The company's share price has tumbled over the last year amid concerns that it could break lending agreements. It has also been rumoured to be a target for private equity.
Concerns over Supervalu's covenants have dissipated but there remains questions over whether the retailer's transformation programme will pay off.
Herkert's plan to changes things around at Supervalu comes, one analyst told just-food, after he made some early mistakes when he joined the business. What's more, his plans are not the first such programme Supervalu has seen in recent years; previous CEO Jeff Noddle also tried his own "transformation" initiatives.
The retailer seems to have been looking to reinvent itself for the past half a decade and, as one analyst noted, it is hard to secure custom when you are a business looking to redefine yourself.
"The real question is: 'Once you've lost that customer and it's been five years do you really get them back?'," asked BMO Capital Markets analyst Karen Scott yesterday as we discussed just-food's In the spotlight article on Supervalu.
Click here for more.
We hear a lot in the food industry about two interconnected trends: and social media and “foodie” culture....
Nestle, set to welcome a new CEO on 1 January, has announced more changes to the make-up of its senior management team....
Blue Bell Creameries is trying to win back the trust of consumers after a fatal listeriosis outbreak last year was linked to its products - but in recent days the US ice cream maker has issued another...
The UK's competition regulator has given the all-clear to Hain Celestial's bid to buy UK food and beverage group Orchard House Foods, nine months after the US group announced the deal....
- General Mills on Q1, innovation, margins
- Interview: Mondelez's outlook for China
- Aryzta FY results, outlook for 2017 - 6 takeaways
- What next for Bernard Matthews? - comment
- Interview: Mondelez eyes sweet success in China
- ConAgra acquires Frontera Foods' "gourmet" brands
- Nestle revamps foodservice arm
- Aryzta FY profits fall
- Nestle close to finalising Garoto deal
- Nestle launches Nesquik Protein Plus for adults
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Global Chocolate Confectionery Overview: Challenges, Opportunities and Risks
- Global Foodservice Market 2016-2020
- Constellation Brands, Inc. (STZ) - Financial and Strategic SWOT Analysis Review
- Global Food and Drinks Closures: Performance and Opportunities