Supervalu Inc. says it has reduced items in 10 major food categories by 20%, a move intended to leverage lower costs with suppliers and free up shelf space for the grocer's private-label products.
The supermarket holding company, based in Eden Prairie, Minn., has grappled with ways to lower the full prices of its products in the past year, because too many shoppers snapped up only discounted items. Reducing the number of items per category also frees up space to more prominently feature cheaper but higher-margined private-label products.
"The stuff we took out still positions us to be a leader in assortment and variety," Supervalu Chief Executive Craig Herkert told analysts during the company's fourth-quarter earnings call Tuesday. "We were simply so over-assorted before."
Mr. Herkert also said the grocery giant, which operates Jewel, Shaw's and Albertson's, exited 26 general merchandising categories such as automotive accessories and fragrances. The product abundance was so immense, workers didn't have enough space to stock a full case of products on the shelf, overflowing their backrooms, Mr. Herkert says.
To read the rest of the story, please go to: Wall Street Journal.
