Retail News Breaks Archives
Supervalu to shutter underperforming stores
September 6th, 2012
MINNEAPOLIS – Supervalu Inc. will close approximately 60 stores during the current 2013 fiscal year, which ends February 23, 2013, with most slated to go dark before December 1.
As a result, Supervalu expects to record pretax charges totaling $80 million to $90 million during the current fiscal year, with about $50 million to $55 million to be booked in the second quarter, which ends September 8. All but $3 million, representing severance costs, will be noncash.
Supervalu also expects to record a pretax gain of about $10 million from the sale of departmental assets in the second quarter. The company also estimates that closing the stores (which include 38 regular supermarkets and 22 Save-A-Lot hard discount grocery outlets) will generate between $80 million and $90 million in cash from monetizing company-owned real estate, eliminating cash operating losses and selling departmental assets.
Among the supermarkets marked for closure, 27 carry the Albertsons banner (19 in southern California and eight in the Intermountain West region), four are Acme stores and one a Jewel-Osco. The remainder have not been disclosed due to contractual discussions.