Supervalu Sees Its Future In Wholesale, Not Grocery Stores
July 23, 2014 | 1 min to read
Supervalu didn't buy Rainbow stores in the Twin Cities because it wanted more supermarkets. It wanted the business of being their supplier, Supervalu CEO Sam Duncan said.
"That transaction we strictly did as a wholesale play," Duncan told shareholders at Supervalu's annual meeting. "That is it. We wanted that business as our wholesale customer."
In May, Eden Prairie-based Supervalu joined other partners to buy 18 Rainbow supermarkets in the Twin Cities. Once the changeover is complete, 10 of those supermarkets will be Cub Foods locations, two will be Byerly's supermarkets and six will remain as Rainbows — all of them under new ownership.
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