Save-A-Lot Expands in FL, GA - Update
Extreme discount supermarket banner Save-A-Lot, a division of supermarket conglomerate Supervalu, is expanding its
store base in Georgia and
Florida. These stores are the first of a reported 50 new openings planned for this year.
Save-A-Lot’s new store in Hinesville, GA marks the chain’s first store in the Hinesville market, although the retailer operates 29 other stores in Georgia. The retailer says the 14,000-square-foot-store will bring 15 new full- and part-time jobs.
In addition, Save-A-Lot has opened a new store in Jacksonville, FL, its sixth in that market and 109th statewide. Save-A-Lot’s Jacksonville store measures 16,000 square feet and the retailer says it will create 28 new full- and part-time jobs. Save-a-Lot offers price points designed to be 20-40% below that of local competitors.
Supervalu Seeks to Double Save-A-Lot Footprint
Save-A-Lot parent company Supervalu will add
up to 50 new stores this year. According to RIS News, Supervalu will reportedly focus much of its expansion effort on the Save-A-Lot discount banner in both 2010 and 2011. Supervalu intends to double the size of Save-A-Lot’s 1,180-store footprint during the next five years. To the end, the retailer plans to open 100 new stores next year in addition to this year’s planned openings.
Supervalu Shrinks Shaw’s, Sees Troubles
Supervalu is not expanding all of its banners. The retailer plans to
sell all 18 of its Shaw’s supermarkets in the state of Connecticut, and so far has reached agreements with retailer-owned grocery cooperative Wakefern for the sale of 11 Shaw’s stores to individual owners, and with Stop & Shop for the sale of five other Shaw’s stores. These transactions are expected to close in spring 2010.
Supervalu continues to seek buyers for its two additional stores in Connecticut. After its 18 Connecticut stores are sold, Supervalu will still operate 176 Shaw’s stores in the other five New England states of Maine, Massachusetts, New Hampshire, Rhode Island and Vermont.
Supervalu
reported a decrease in third quarter fiscal 2010 net sales, as well as a net loss and flat gross margin. Supervalu said earnings were in line with expectations but sales were softer than anticipated. For the full fiscal year 2010 (ending March 2010), Supervalu projects net sales of approximately $41 billion and a $700 million debt reduction.
Many industry observers speculate Supervalu may soon be
targeted for a buyout, according to Supermarket News. Supervalu, which presumably would sell its retail stores to pay down debt and focus on its wholesale business, has not publicly commented.
Supervalu operates a network of approximately 4,290 stores across the U.S. In addition to Save-A-Lot, the network comprises approximately 1,200 traditional and premium stores, 850 in-store pharmacies, and 1,910 independent stores serviced primarily by the company's traditional food distribution business.
