Analysts seem to like a plan by Supervalu Inc. to shift money away from opening new Save-A-Lot stores and towards remodeling existing groceries.
The Eden Prairie-based company disclosed in its earnings announcement earlier this month that it would open about 80 to 90 Save-A-Lots during the fiscal year that ends Feb. 28. Earlier this year, it had expected to open as many as 160 Save-A-Lots.
Instead, the company will spend more on improving its conventional stores, such as Cub Foods, Jewel and Shaw's.
In a conference call with analysts, Supervalu CEO Craig Herkert said the remodels would focus on improving merchandising fixtures and creating better product display. The company also wants to improve logistics and transportation and invest in energy management projects.
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