Supervalu Sells 36 Stores

 

Supervalu Inc. is reducing its fiscal 2010 outlook and has sold the majority of its Albertsons stores in Utah to Salt Lake City-based Associated Food Stores Inc., St. Louis Business Journal reported.

 

Eden Prairie, Minn.-based Supervalu, the parent company of the St. Louis-based Save-A-Lot and Shop ‘n Save  grocery chains, reported net earnings of $113 million for the quarter that ended June 20, down 30% from $162 million in the same period last year.

 

The company’s net sales for the quarter were $12.72 billion, down nearly 5% from $13.35 billion a year ago.

 

Supervalu said it now predicts its full-year earnings to be $1.95 to $2.15 per diluted share, down from its previous forecast of $2.01 to $2.21 per share. The company also anticipates a same-store sales decline of about 3%. It previously had projected a range of -1% to +1%.

 

“We anticipate recent trends and the pressures the consumer is facing will continue in the near term,” Supervalu CEO Craig Herkert said in a statement. “This is reflected in our outlook for the balance of the year.”

 

In addition, Supervalu also announced Tuesday that it has sold the majority of its Albertsons stores in Utah to Associated Food Stores Inc., for about $150 million.

 

The deal includes 36 Albertsons stores in Utah, along with their respective pharmacies and gas stations. Associated Food Stores said it plans to retain most Albertsons employees at those stores.

 

Supervalu said it also is seeking a buyer for four other Albertsons stores in Utah-two in Orem and two in West Jordan.

 

The company said it would continue to operate its distribution center in Salt Lake City, which serves Albertsons stores in Idaho, Wyoming and Montana.

 

 

 

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