This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

SUPERVALU Announces Decision To Close Underperforming Stores

SUPERVALU INC. (NYSE: SVU) today announced it will close approximately 60 underperforming or non-strategic stores this fiscal year including 38 in its retail food reporting segment and 22 Save-A-Lot locations. The majority of the stores are expected to close before December 1, 2012, the end of the Company’s fiscal 2013 third quarter.

“These decisions are never easy because of the impact a store closure has on our team members, our customers, and our communities,” said Wayne Sales, SUPERVALU’s president, chief executive officer, and chairman. “Today’s announcement reflects our commitment to move with a greater sense of urgency to reduce costs and improve shareholder value.”

As a result of the closures, SUPERVALU expects to record a pre-tax charge of $80-$90 million in fiscal 2013, with all but $3 million in estimated severance costs being non-cash. Of these amounts, $50-$55 million is expected in the Company’s fiscal 2013 second quarter (ending September 8, 2012) with the majority of the remainder anticipated to be recorded in its fiscal 2013 third quarter. In addition, a pre-tax gain of approximately $10 million from the sale of departmental assets is expected in fiscal 2013 second quarter.

Over the next three years, the Company estimates that closing these locations will generate between $80- $90 million in cash from monetizing owned real estate, eliminating cash operating losses, and selling departmental assets. The Company owns the real estate for approximately one-third of the retail food stores being closed. Cash generated from these actions will be used to reduce outstanding debt and for other general corporate purposes. These closures will also be accretive to net earnings.

The closures in the retail food segment include 27 Albertsons stores (19 in Southern California, including one previously announced location, and eight in the Intermountain West region), four ACME stores, and one previously announced Jewel-Osco location.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,175.94 -352.09 -2.13%
S&P 500 1,939.83 -32.35 -1.64%
NASDAQ 4,716.9520 -59.5560 -1.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs