MINNEAPOLIS — Supervalu Inc. has named Santiago Roces president and chief executive officer of its growing Save-A-Lot limited-assortment discount grocery chain.
Supervalu Inc. has named Santiago Roces president and chief executive officer of its growing Save-A-Lot limited-assortment discount grocery chain.
Formerly senior vice president and general manager of Walmart’s small format division, Roces succeeds Bill Shaner, who had been Save-A-Lot CEO since 2006.
"The change suggests that Save-A-Lot’s recent performance has failed to live up to management’s expectations," wrote Credit Suisse analyst Ed Kelly in a research note. "Mr. Roces seems to be a good addition, and we believe an opportunity to significantly expand this retail concept remains."
Save-A-Lot is a pillar of the growth strategy that Supervalu unveiled at its annual investor meeting earlier this month. Plans call for the retailer to open 160 new Save-A-Lots in fiscal 2012 and to more than double the chain’s size to over 2,400 stores by the end of 2015.
For its traditional supermarkets, Supervalu plans “fair everyday pricing,” enhanced fresh offerings, store assortments and formats that are better matched to local needs, and a more compelling private label program.
In the latter effort a new single, national brand–equivalent private label, Essential Everyday, will replace the current banner-branded products. Also, the Shoppers Value entry-price brand will be launching or relaunching 80 items in the coming months.