CHICAGO – During a meeting with investors today, SUPERVALU INC (NYSE: SVU) provided an update on its strategic plan to deliver profitable growth in the future for shareholders. The plan, which supports the company's vision to become America's Neighborhood Grocer, is focused on improving the competitive performance at the company's traditional retail grocery stores, and on growing its Save-A-Lot and Independent Retail businesses. To achieve its vision, the company is investing in and deploying new tools and capabilities to support its diverse variety of owned and licensed formats and the many different independent grocers through which consumers are served daily.
Commenting on the company's plans, SUPERVALU CEO and president Craig Herkert said, "We are focused on acting as one company, working toward a common goal of delivering increased value to all of our customers and meeting their needs neighborhood by neighborhood."
Traditional Retail Banners
At the meeting, the company's senior management team outlined key initiatives the company is undertaking to reverse sales declines at its traditional retail banners and get them back on the path to growth. The efforts underway include:
- Sharpening the traditional retail banners' value proposition through a fair everyday pricing plus promotion strategy;
- Enhancing fresh offerings, which includes providing customers with more locally grown produce, introducing a new "Just Baked" program to ensure the availability of fresh-baked breads and rolls throughout the day, and improving deli department offerings with new products like grilled chicken;
- Developing and maintaining a portfolio of compelling private brand products that differentiate our retail outlets from our competition and provide more competitive value for customers;
- Better matching store assortment and format to the needs of each neighborhood; and
- Providing a more hassle-free experience both in-store and online.
In discussing its private brands program, Herkert said that the company expects to deliver a 100 basis point annual improvement in private brand sales per year over the next three years. As part of its plans, the company announced that it intends to move to a new single national-brand-equivalent private brand — Essential Everyday(TM) — to replace existing banner-branded products. With the introduction of the Essential Everyday brand, which will roll-out in phases, the company will be able to realize significant savings through packaging and taking a more national approach to advertising and promotions.
The company also plans to expand its Shoppers Value entry price-point private brand line and will be launching or relaunching 80 new items in the coming months.
Save-A-Lot
At the meeting, the company discussed its plans to continue to aggressively support the national expansion of Save-A-Lot, its hard-discount format. Those plans include growing Save-A-Lot by 160 new stores in fiscal 2012, keeping the company on track to reach its goal of building a network of more than 2,400 stores by 2015.
The Save-A-Lot portfolio includes a blend of 30 percent corporate-owned and 70 percent licensee-operated stores. This multiple-ownership model supports the company's aggressive growth strategy, while helping it conserve capital.
During the meeting, the company announced the addition of the Save-A-Lot Today(TM) brand to its private brand program. The new Save-A-Lot Today brand is an opening price point line with most products priced under $1 to help its value-focused customers stretch their dollars.
Independent Retail Business
SUPERVALU also outlined its plans to grow its wholesale distribution business through continued development and deployment of new value added services to support its independent retailers while at the same time better leveraging the scale of the entire SUPERVALU store network.
In addition, SUPERVALU continues to seek new affiliations and expand its geographic reach into previously underserved markets. The recently announced affiliation with C&K Grocers, a 62-store grocery retailer located in northern California and Oregon, is an example of the success of this strategy.
To listen to the Investor Day webcast replay please visit: http://www.supervaluinvestors.com. The event will be available for audio replay for approximately two weeks on SUPERVALU's web site on the Investor Relations web page under "Presentations and Webcasts."
About SUPERVALU INC.
SUPERVALU INC. is one of the largest companies in the U.S. grocery channel with annual sales of approximately $38 billion. SUPERVALU serves customers across the United States through a network of approximately 4,294 stores composed of 1,114 traditional retail stores, including 805 in-store pharmacies; 1,280 hard-discount stores, of which 899 are operated by licensee owners; and 1,900 independent stores serviced primarily by the company's traditional food distribution business. SUPERVALU has approximately 140,000 employees. For more information about SUPERVALU, visit www.supervalu.com.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.
Except for the historical and factual information contained herein, the matters set forth in this news release, particularly those pertaining to SUPERVALU's expectations, guidance, or future operating results, and other statements identified by words such as "estimates," "expects," "projects," "plans," and similar expressions are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the impact of economic conditions, strategic initiatives, competition, food and drug safety issues, liquidity, labor relations issues, escalating costs of providing employee benefits, regulatory matters, self-insurance, legal and administrative proceedings, information technology, severe weather, natural disasters and adverse climate changes, the continuing review of goodwill and other intangible assets, accounting matters and other risk factors relating to our business or industry as detailed from time to time in SUPERVALU's reports filed with the SEC. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required, SUPERVALU undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Source: SUPERVALU INC.
