US retailer Supervalu, battling to revitalise its business, has decided to close around 60 stores.
Supervalu, which has a network of about 4,400 outlets across the US, said it would shut the “under-performing or non-strategic stores” in its current financial year, which runs until late February.
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The stores to be shut include 22 Save-a-Lot locations, 27 Albertsons stores, four Acme outlets and one Jewel-Osco shop.
Supervalu president, CEO and chairman Wayne Sales said the decision showed the retailer was moving “with a greater sense of urgency to reduce costs and improve shareholder value”.
Sales became Supervalu chief executive in July, weeks after the retailer booked a decline in first-quarter sales and earnings two months. In its last three full financial years, the retailer has seen gross profit, revenue and identical-stores sales fall.
On his appointment, Sales said Supervalu would look to cut costs “significantly” and “move with urgency in our retail food business to lower prices and create points of sustainable differentiation”.
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By GlobalDataWhile Sales looks at Supervalu’s operational strategy, he is also conducting a “strategic review” of its entire business.
Last month, a Bloomberg report in the US claimed Supervalu’s advisers were asking potential buyers to bid for the entire business.
However, sources told Bloomberg several suitors have enquired about individual parts of the group.
Cerberus Capital Management is said to be examining a possible deal involving the retailer’s Albertsons unit, Bloomberg said, Ahold has shown interest in the Shoppers chain.
