Back to top

Analyst Blog

Supervalu Inc. (SVU - Analyst Report) has made additional appointments to its new executive team following the completion of the strategic sellout of its markets to Cerberus Capital Management LP.

Under the leadership of former OfficeMax Inc. Chief Executive Officer Sam Duncan, who became Supervalu's CEO in Feb 2013, the company made many changes to its management team.

The executive team now includes two new entrants, Randy Burdick as executive vice president and chief information officer, and Michele Murphy as executive vice president, human resources and corporate communications.

Randy Burdick, who replaces Kathy Persian, has 28 years of experience at in leadership positions at several companies like Hewlett-Packard Company (HPQ - Analyst Report) and Advanced Micro Devices Inc. (AMD - Analyst Report). Prior to joining Supervalu, Burdick had served OfficeMax for eight years as chief information officer.

Michele Murphy, who replaces Dave Pylipow, has 30 years of experience. She had served Supervalu as senior vice president of corporate human resources and labor relations for the last seven years.

J. Andrew Herring is expected to leave the company following the completion of the deal on Mar 25, 2013. Herring held the position of executive vice president of real estate, market development and legal in Supervalu since 2010.

As a part of broad-based strategic alternatives, Supervalu will sell Albertson's, Jewel-Osco, Acme, Shaw's and Star Market chains, all of which combined come to about 877 stores. These go to private equity firm Cerberus Capital Management LP, for $3.3 billion.

Management commented that it wants to streamline its operations in order to focus on Save-A-Lot discount stores, as well as its smaller regional chains Cub, Farm Fresh, Shoppers, Shop 'n Save and Hornbacher's.

Very recently, Supervalu reshuffled its management team. Michael Moore, the present chief marketing officer, was replaced by Mark Van Buskirk, from Supervalu’s rival grocery chain The Kroger Company. He will take up the responsibility of executive vice president of merchandising and marketing in the company.

Supervalu missed estimates in the third quarter of fiscal 2013 and also posted lower earnings from the year-ago quarter. Moreover, the company reported negative identical store sales successively for the past four years. The trend has continued in the first half of fiscal 2013.

Now, in order to combat four successive years of negative identical store sales and re-position the company for growth, Supervalu is geared for expansion of its private brand portfolio and to step up cost-reduction initiatives.

These are expected to reduce administrative and operational expense by an additional $250 million by fiscal 2014.

We believe that the executive management turnaround could prove beneficial to Supervalu’s bottom line as all the new appointees have extensive retail and grocery experience.

Currently, Supervalu carries a Zacks Rank #3 (Hold).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.46 +5.69%
BITAUTO HOL… BITA 81.88 +5.34%
CHINA BIOLO… CBPO 47.96 +3.41%
WILLDAN GRO… WLDN 12.09 +3.25%
CTPARTNERS… CTP 16.49 +3.19%