US retailer Supervalu Inc has kicked off a “strategic review” of its business, which could include a sale of the company, after another quarter of falling sales.
Supervalu, which has around 4,400 stores in the US, is looking at “strategic alternatives” to, it insisted, “create value for shareholders”.
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The company has seen gross profit, revenue and identical-stores sales decline for three years in a row. Yesterday, it reported falls on all three metrics for the first quarter of its current financial year.
In the short term, in a bid to revive flagging sales, Supervalu said will “accelerate” its price cuts.
It is also looking at fresh ways to lower costs and cut “near-term” capital expenditure.
The retailer also announced plans for “more flexible” financing facilities and a suspension of its dividend.
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By GlobalDataSupervalu is already part-way through a transformation programme it hopes will turn the business around after a difficult period. Supervalu has already been cutting prices and looking at its costs. In May, it said up to 2,500 jobs could be under threat as a result of planned cuts at its Albertsons stores in California and Nevada.
However, there has been uncertainty around Wall Street about whether Supervalu’s strategy will pay off and the latest results will add to concerns over the company.
