Shop ‘n Save and Save-A-Lot grocery stores could be sold following parent company Supervalu Inc.’s dismal profit report, according to the St. Louis Post-Dispatch.
The Minnesota-based Supervalu is the third largest grocery business in the country, but low profits threaten its survival. This week the company reported net income fell 45 percent in the first quarter. The company’s stock (SVU) has dropped more than 50 percent from July 12 to July 13 from $5.30 to $2.54.
“There have been problems brewing for quite some time,” Jim Hertel, an analyst with Willard Bishop, a Chicago-based consulting firm said in an interview with the Post-Dispatch. “They’ve had pricing issues, debt-service issues. They have an old and quite frankly, tired store base, with small stores in challenged areas. When you put that all together, it’s just a matter of when, not if.”