Supervalu announced earlier this month that its discount grocer Save-A-Lot filed an IPO and plans to spin off into a publicly traded company to be largely controlled by Supervalu shareholders.
According to Supervalu CEO Sam Duncan, after the separation "Supervalu will be able to focus on providing wholesale distribution services to independent retail customers and operating its five regionally based traditional format grocery banners. Save-A-Lot will continue to be a leader in hard discount grocery retailing in the United States."
According to the prospectus, Save-A-Lot would trade on the New York Stock Exchange. The prospectus also said that Save-A-Lot plans to open about 90 stores per year in 2016 and 2017, and to maintain mid-to-high single digit rates of annual new store growth in future years.
According to Save-A-Lot, the limited assortment grocery channel represents approximately 3 percent of the overall U.S. market and is projected for growth of 8 percent over the next five years.