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Supervalu to Close 60 Stores Amid Three-Year Sales Slump

Wednesday, 05 September 2012 04:54 PM

 Supervalu Inc., owner of the Albertsons and Save-A-Lot grocery-store chains, said it will close 60 stores as it copes with slumping sales.

The closings will result in a pretax charge of as much as $90 million in its fiscal 2013, the Eden Prairie, Minnesota- based company said Wednesday in a statement. The stores to be closed include 22 Save-A-Lot locations.

Supervalu has been eliminating jobs and cutting prices on food to keep pace with big-box retailers, such as Wal-Mart Stores Inc., and dollar stores. In July, the third-largest U.S. grocery chain, which has seen three straight years of revenue declines, said it was conducting a strategic review of alternatives for the business and suspended its dividend.

Supervalu rose 3.1 percent to $2.35 at 4:15 p.m. in New York. The shares had tumbled 72 percent this year through the close of regular trading Wednesday.

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Wednesday, 05 September 2012 04:54 PM
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