Thursday, January 15, 2015

Supervalu experiencing growth, ready to take on Aldi

Last week Supervalu announced that all three business segments - wholesale, Save-A-Lot and traditional food retail - grew in the company's fiscal third quarter. Overall, the company had $4.2 billion in sales, a 4.8% increase over the same quarter last year. Net earnings were $79 million.

Supervalu's wholesale business plans for growth in the near future with new accounts, and the company expects to add 65 new Save-A-Lot stores in 2015.

Supervalu also made news last week when CEO Sam Duncan said his company competes very well with Aldi and "will gladly take them on any time, any place."

Regarding Aldi's acquisition of Bottom Dollar, Duncan pointed out that a lot of the Bottom Dollar stores are paying high rents. "We were looking at some of those locations before Bottom Dollar, and we established our rate that we would pay," said Duncan. "And then, they came in above us and paid some very high prices. So, we'll see how that all unfolds."

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