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ACME Markets Inc., a division of Supervalu Inc. ( SVU - Analyst Report ) , recently inaugurated its new store in Bryn Mawr, Pa. The new store is three times larger than the one which was operating there.
ACME operates through 117 stores in Pennsylvania, New Jersey, Delaware and Maryland.
We are pleased with Supervalu’s efforts to drive its retail operations primarily through new store development, addition of merchandise in existing stores and increasing the number of replacement food distribution centers.
Save-A-Lot, a wholly-owned subsidiary of Supervalu, announced the opening of its full-service grocery store in Atlantic City on May 17, 2012. Moreover, in February and March 2012, Save-A-Lot opened three new stores in Tennessee, four in Pennsylvania, and three each in Ohio and New York. Supervalu expects to open 160 ‘Save-A-Lot’ stores by fiscal 2012.
During fiscal 2012, the company added 83 new stores and remodeled 83 traditional stores. It also upgraded its technology to drive productivity and added a number of customer-facing merchandising initiatives to drive sales. The company expects to complete remodeling approximately 100 stores and add approximately 50 Save-A-Lot stores in fiscal 2013. The company plans to add 250 Save-A-Lot stores in the next five years.
However, identical store sales were negative in the fourth quarter of 2012 for the fourth successive year, resulting in loss of market share, which in turn has weakened the competitive climate. Moreover, high inflation and stiff competition from Safeway Inc. ( SWY - Analyst Report ) and Wal-Mart Stores Inc. ( WMT - Analyst Report ) are matters of concern.
Currently, we have a long-term Neutral recommendation on SUPERVALU, which carries a Zacks #3 Rank (short term Hold rating).
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