Wednesday, July 2, 2014

Price investments, remodels continue at Save-A-Lot

Supervalu announced last week that it plans to continue its price investments in Save-A-Lot stores with the goal of getting closer to the pricing offered at Aldi stores. According to CFO Bruce Besanko, Save-A-Lot is typically priced "well below Walmart and we are close in terms of Aldi."

The company also discussed its efforts to remodel corporate stores, but said Supervalu's efforts have sometimes been confounded by the competition.

According to Besanko, "Not every remodel has been a home run so far because of confounding variables in a couple of cases that weren't in the pro forma, as when a competitor comes in and disrupts the pro forma."

The remodels include the expansion of pet and baby foods, a cleaning up of fresh areas, merchandising produce more robustly, and adding sushi and fresh-cut items.

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