SUPERVALU launches refreshed e-commerce sites Powered by Instacart

SAN FRANCISCO and EDEN PRAIRIE, Minn., 2017-Dec-13 — /EPR Retail News/ — Instacart, the technology-driven, nationwide on-demand grocery delivery service, and SUPERVALU INC. (NYSE: SVU), one of the largest grocery wholesalers and retailers in the U.S., has entered into an exclusive multiyear contract. Under this agreement, SUPERVALU recently launched refreshed e-commerce sites Powered by Instacart for four of its retail banners across the nation: Cub, Farm Fresh Food and Pharmacy, Shop ‘n Save, and Shoppers Food and Pharmacy.

SUPERVALU and Instacart first joined forces to offer same-day grocery delivery in September 2015. Based on customer response and continued demand for e-commerce options, SUPERVALU has selected Instacart to expand its offerings, including click-and-collect, a solution that allows customers to order online and pick up at the store without ever leaving their vehicle. The expanded offering will soon provide integration of store coupons and loyalty rewards for orders placed online through the Powered by Instacart sites, delivering additional value for shoppers.

“Our relationship with Instacart continues to evolve, and going forward we have a great plan for delivering online grocery and meal solution options for our retail customers,” said Anne Dament, Executive Vice President of Retail, Marketing, and Private Brands at SUPERVALU. “SUPERVALU is committed to addressing the unique preferences of the communities we serve, and now customers have another option to get the fresh, premier products they expect from our retail stores with the convenience of same-day delivery that fits with their busy lifestyles.”

SUPERVALU customers across Minnesota; St. Louis, Mo.; Virginia Beach, Va.; and the Washington, D.C. area can now visit brand-specific Powered by Instacart sites to fill their virtual carts with their favorite items, from fresh, ready-to-eat options in the deli to everyday essentials, and have them delivered straight to their doorstep, often in as little as one hour.

“SUPERVALU is a grocery industry leader and a great fit given Instacart’s mission to bring customers the groceries they want from the brands they trust within their own communities,” said Nilam Ganenthiran, Instacart’s Chief Business Officer. “We are thrilled to extend our relationship and launch Powered by Instacart sites for these trusted retail brands.”

About Instacart 
Instacart helps people cross grocery shopping off their to-do lists with just a few clicks. Customers use the Instacart website or app to fill their virtual shopping cart with items from their favorite, local stores, and Instacart connects them with shoppers who hand- pick the items and deliver them straight to their door. Founded in San Francisco in 2012, Instacart has quickly scaled to over 160 markets and partnered with retailers across North America, including popular national chains as well as local, regional grocers. By combining a personal touch with cutting-edge technology, Instacart offers customers a simple solution to save time and eat fresh food from the most trusted grocery brands. Instacart is the only grocery service that can meet today’s on-demand lifestyle by delivering in as little as one hour. First delivery is free at www.instacart.com.

About SUPERVALU INC.
SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S., with annual sales of approximately $16 billion. SUPERVALU serves customers across the United States through a network of 3,337 stores composed of 3,120 wholesale primary stores operated by customers serviced by SUPERVALU’s food distribution business and 217 traditional retail grocery stores operated under five retail banners in six geographic regions (store counts as of September 9, 2017). Headquartered in Minnesota, SUPERVALU has approximately 31,000 employees. For more information about SUPERVALU visit www.supervalu.com.

Media Contacts: 
Mike Wilken for SUPERVALU
Michael.Wilken@supervalu.com

Dacyl Armendariz for Instacart
dacyl.armendariz@instacart.com

Source: SUPERVALU INC.

SUPERVALU completes the acquisition of Associated Grocers of Florida for $193 million

MINNEAPOLIS, 2017-Dec-12 — /EPR Retail News/ — SUPERVALU INC. (NYSE: SVU) today (Dec. 8, 2017) announced it has completed the previously announced acquisition of Associated Grocers of Florida, Inc. in a transaction valued at approximately $193 million. Associated Grocers of Florida adds a dynamic grocery wholesaler to SUPERVALU’s growing national distribution network with annual sales of approximately $650 million in its last fiscal year as estimated under SUPERVALU’s accounting policies. This acquisition marks the second completed acquisition of 2017 for SUPERVALU as the Company continues to strategically invest in growing its wholesale business.

“The addition of Associated Grocers of Florida is another important step on our journey to becoming the wholesaler of choice for grocery retailers,” said Mark Gross, SUPERVALU’s President and Chief Executive Officer. “AG of Florida has a tremendous retailer base across central and south Florida and we’ll immediately gain a vibrant group of customers as well as an ability to expand internationally with AG’s customers in territories that include the Caribbean, and Central and South America.”

Gross continued, “I’m also thrilled that Christopher Miller, AG’s former president, will continue with us in a similar role as president of SUPERVALU Florida going forward. Chris has built a great team and we’re very excited that they’re now a part of our SUPERVALU family. Between the Unified Grocers and AG of Florida acquisitions, we’ve added substantial talent that will help us meet the rapidly changing needs of the markets we serve, including the growing specialty, organic, Latino and Hispanic markets.”

About SUPERVALU INC.
(The following information on sales, store counts and employees is as of SUPERVALU’s last fiscal quarter end and does not include AG of Florida)

SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $16 billion. SUPERVALU serves customers across the United States through a network of 3,337 stores composed of 3,120 stores operated by wholesale customers serviced primarily by SUPERVALU’s food distribution business and 217 traditional retail grocery stores operated under five retail banners in six geographic regions (store counts as of September 9, 2017). Headquartered in Minnesota, SUPERVALU has approximately 31,000 employees.

Founded in 1945, Associated Grocers of Florida, Inc. is a wholesale grocery distributor that supplies full lines of groceries and general merchandise to independent retailers and regional chains throughout Florida, Central America, South America and Caribbean countries.

For more information about SUPERVALU visit www.supervalu.com.

Investor Contact:
Steve Bloomquist
952-828-4144
steve.j.bloomquist@supervalu.com

Media Contact:
Jeff Swanson
952-903-1645
jeffrey.s.swanson@supervalu.com

Source: SUPERVALU INC.

SUPERVALU to participate in Barclays “Eat, Sleep, Play – It’s Not All Discretionary” Conference in New York

MINNEAPOLIS, 2017-Nov-29 — /EPR Retail News/ — SUPERVALU INC. (NYSE: SVU) will participate in next week’s Barclays “Eat, Sleep, Play – It’s Not All Discretionary” Conference in New York. President and CEO Mark Gross and Executive Vice President, Chief Strategy Officer and Interim Chief Financial Officer Rob Woseth will address investors at approximately 8:00 a.m. (Eastern Time) on Wednesday, December 6, 2017.

A live webcast of this event will be available through the SUPERVALU website at http://www.supervaluinvestors.com (click on microphone icon). A replay will be archived on SUPERVALU’s website and will be available at  by clicking on “Presentations and Webcasts.”

The accompanying presentation will be posted to the SUPERVALU website (http://www.supervaluinvestors.com) at approximately 7:00 a.m. (Eastern Time) on December 6th.

About SUPERVALU INC.
SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $16 billion. SUPERVALU serves customers across the United States through a network of 3,337 stores composed of 3,120 stores operated by wholesale customers serviced primarily by Supervalu’s food distribution business and 217 traditional retail grocery stores operated under five retail banners in six geographic regions (store counts as of September 9, 2017). Headquartered in Minnesota, SUPERVALU has approximately 31,000 employees. For more information about SUPERVALU visit www.supervalu.com.

Investor Contact:
Steve Bloomquist
952-828-4144
steve.j.bloomquist@supervalu.com

Media Contact:
Jeff Swanson
952-903-1645
jeffrey.s.swanson@supervalu.com

Source: SUPERVALU INC.

SUPERVALU promotes Anne Dament to Executive Vice President, Retail, Marketing and Private Brands

MINNEAPOLIS, 2017-Nov-15 — /EPR Retail News/ — SUPERVALU INC. (NYSE:SVU) today (Nov. 13, 2017) announced changes to its executive leadership team. Anne Dament has been promoted to Executive Vice President, Retail, Marketing and Private Brands effective immediately.

Dament joined SUPERVALU in January 2017 and has made significant contributions to SUPERVALU, including developing a strong plan and implementation strategy to improve the company’s retail division, reorganizing multiple retail merchandise groups, consolidating wholesale and retail marketing efforts and driving new product introductions. With respect to new products, she has brought new ideas and direction to SUPERVALU’s portfolio, including launching over 350 new private label items this year, and developed other innovative solutions, such as SUPERVALU’s recent launch of its national Quick & Easy meal solution program.

“Anne is a smart, creative, and dynamic leader and has made a significant impact on our team in a short time frame,” said Mark Gross, SUPERVALU’s President and Chief Executive Officer. “Over the last year, she’s set a positive vision for our retail initiatives, particularly here in Minnesota, introduced exciting new product innovation to wholesale and retail, and brought greater collaboration between our retail and wholesale teams.”

SUPERVALU also announced today that Karla Robertson, Executive Vice President, General Counsel and Corporate Secretary, will resign from her position effective November 17, 2017 to join Pentair plc.

“Karla is a highly respected leader who has been a tremendous asset to this company and to me personally,” said Gross. “She has been a great member of the executive team and contributor toward our growth and transformation. Not only has she provided excellent legal advice but she has also served an invaluable role as business partner and advisor to all of us. I thank Karla for her service to our company over the past eight years and wish her all the best.”

Stuart McFarland has been appointed Senior Vice President, General Counsel and Corporate Secretary effective November 18, 2017. McFarland has worked at SUPERVALU since 2010 in positions of increasing responsibility and currently serves as Vice President, Associate General Counsel and Assistant Corporate Secretary focusing on corporate transactions, mergers and acquisitions, securities and corporate governance. Prior to joining SUPERVALU, McFarland was an associate at the law firm of Gibson, Dunn & Crutcher LLP in Los Angeles. McFarland earned his bachelor of arts degree in Economics from the University of Florida and his law degree from the University of Minnesota Law School, where he graduated summa cum laude.

Gross continued, “Looking forward, we are very excited to have Stuart as our General Counsel as we continue our transformation and focus on organic and new growth opportunities. Stuart is an extremely intelligent, insightful, and hard-working leader who will hit the ground running with his knowledge of SUPERVALU and our industry.”

About SUPERVALU INC.
SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $16 billion. SUPERVALU serves customers across the United States through a network of 3,337 stores composed of 3,120 wholesale primary stores operated by customers serviced by SUPERVALU’s food distribution business and 217 traditional retail grocery stores operated under five retail banners in six geographic regions (store counts as of September 9, 2017). Headquartered in Minnesota, SUPERVALU has approximately 31,000 employees. For more information about SUPERVALU visit www.supervalu.com.

Contact:
For Investors:
Steve Bloomquist
952-828-4144
steve.j.bloomquist@supervalu.com

For Media:
Jeff Swanson
952-903-1645
jeffrey.s.swanson@supervalu.com

Source: SUPERVALU INC.

SUPERVALU to acquire Associated Grocers of Florida for approximately $180 million

  • Adds dynamic grocery wholesaler to SUPERVALU’s growing national distribution network
  • Creates opportunities to leverage Associated Grocers’ approximate 1.5 million square feet of owned real estate and enhance Associated Grocers’ international business serving the Caribbean, Central and South America and Asia
  • Provides Associated Grocers’ diverse customer base with access to SUPERVALU’s extensive private brands portfolio, Market Centre specialty division, and varied professional services offering

MINNEAPOLIS & POMPANO BEACH, Fla., 2017-Oct-23 — /EPR Retail News/ — SUPERVALU INC. (NYSE: SVU) and Associated Grocers of Florida, Inc. today announced that they have entered into a definitive merger agreement for SUPERVALU to acquire Associated Grocers in a transaction valued at approximately $180 million.

This transaction provides SUPERVALU with the ability to expand its operations into a new part of Florida as well as provides new opportunities to bring SUPERVALU’s products and services to Associated Grocers’ diverse customer base in South Florida, the Caribbean, and other international markets. Additionally, as part of the pending transaction, SUPERVALU has reached a long-term supply agreement with Associated Grocers’ largest customer that will go into effect upon the closing of the transaction.

Founded in 1945, Associated Grocers is a retailer-owned cooperative that distributes full lines of grocery and general merchandise to independent retailers, primarily in South Florida, the Caribbean, Central and South America and Asia. Associated Grocers’ customer base of conventional, specialty and ethnic stores includes an exciting mix of multi-cultural independent grocers that complements SUPERVALU’s customer base. SUPERVALU expects the combined company will be well positioned to efficiently serve its broad range of customers and offer an array of value added services, helping Associated Grocers and SUPERVALUcustomers compete and thrive in an increasingly demanding grocery environment. During Associated Grocers’ last fiscal year, which ended on July 29, 2017, Associated Grocers’ revenues were approximately $650 million, estimated by SUPERVALU under its accounting policies.

“Associated Grocers represents a great opportunity for us to further expand our wholesale business into another important region,” said Mark Gross, SUPERVALU’s President and Chief Executive Officer. “We believe SUPERVALU is uniquely positioned to be the supplier of choice across the grocery industry and this acquisition is another example of how we’re delivering on our growth strategy.”

Gross continued, “Christopher Miller and his talented team have done outstanding work to build and support a dynamic and diverse retailer base. We’re looking forward to welcoming the strengths and talents of the Associated Grocers team to SUPERVALU and working together so that, once the transaction is complete, we can bring the benefits of our combined scale and expertise to their customers to help them better compete in the evolving grocery industry.”

“I’m very excited about this announcement,” said Associated Grocers’ President, Christopher Miller. “Being a part of SUPERVALU will provide us with access to resources, products, services and overall capabilities that are essential to helping us continue to provide top-notch support to our customers. SUPERVALU and Associated Grocers share a common dedication and commitment to the independent retailer and together we’ll be in a great position to provide opportunities, innovation and increased value to our customers, both domestically and in foreign markets.”

The transaction, which was approved by each company’s board of directors, is currently expected to close by the end of calendar year 2017, subject to approval by Associated Grocers’ shareholders and other customary closing conditions. Following completion of the merger, Associated Grocers will be a wholly-owned subsidiary of SUPERVALU.

Faegre Baker Daniels LLP and Cleary Gottlieb Steen & Hamilton LLP acted as SUPERVALU’s legal counsel. RBC Capital Markets LLC acted as financial advisor to Associated Grocers of Florida and Akerman LLP acted as Associated Grocers’ legal counsel.

Conference Call

A conference call to review SUPERVALU’s second quarter results is scheduled for 9:00 a.m. central time today. SUPERVALUintends to discuss this announcement on that call. The call will be webcast live at www.supervaluinvestors.com (click on microphone icon). A replay of the call will be archived at www.supervaluinvestors.com. To access the website replay, go to the “Investors” link and click on “Presentations and Webcasts.”

About SUPERVALU INC.
SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $16 billion. SUPERVALU serves customers across the United States through a network of 3,337 stores composed of 3,120 wholesale primary stores operated by customers serviced by SUPERVALU’s food distribution business and 217 traditional retail grocery stores operated under five retail banners in six geographic regions (store counts as of September 9, 2017). Headquartered in Minnesota, SUPERVALU has approximately 31,000 employees. For more information about SUPERVALU visit www.supervalu.com.

About Associated Grocers of Florida, Inc.
Associated Grocers of Florida, Inc. is a retailer-owned cooperative distributing full lines of groceries and general merchandise under both national and store brands. Founded in 1945, the wholesale distributor serves both independent retailers and regional chains throughout Florida, Central America, South America and Caribbean countries. Headquartered in Pompano Beach, FL, Associated Grocers operates two distribution centers and has approximately 650 employees. Associated Grocers owns approximately 1.5 million square feet of real estate.

Forward Looking Statements

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.

Except for the historical and factual information, the matters set forth in this news release and SUPERVALU’s earnings conference call, particularly those pertaining to the expected completion of the merger (including the timing thereof), the ability to consummate the merger (including but not limited to the receipt of all required regulatory approvals) and SUPERVALU’sexpectations, guidance, or future operating results (including expected synergies), and other statements identified by words such as “estimates” “expects,” “projects,” “plans,” “intends,” “outlook” and similar expressions are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the ability to satisfy the closing conditions and close the proposed acquisition on a timely basis or at all, the possibility that modifications to the terms of the transaction may be required in order to obtain or satisfy all required approvals, business disruption, ability to achieve operational efficiencies, including synergistic and other benefits of the proposed acquisition, ability to effectively retain key employees and maintain and grow customer relationships, ability to effectively manage organization and integration changes during the pendency of or following the transaction, ability to achieve expected financial results for the combined entity and other risk factors relating to the business or industry as detailed from time to time in SUPERVALU’s reports filed with the SEC. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. For more information, see the risk factors described in SUPERVALU’S Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and other filings with the SEC. Unless legally required, SUPERVALU undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Source: SUPERVALU INC.

For SUPERVALU Inquiries:
Investors:
Steve Bloomquist, 952-828-4144
steve.j.bloomquist@supervalu.com
or
Media:
Jeff Swanson, 952-903-1645
jeffrey.s.swanson@supervalu.com
or
For Associated Grocers Inquiries:
Media:
Christopher Miller, 954-876-3232
CMiller@agfla.com

SUPERVALU acquisition of Unified Grocers now complete

MINNEAPOLIS, 2017-Jun-26 — /EPR Retail News/ — SUPERVALU INC. (NYSE: SVU) today (Jun. 23, 2017) announced it has completed the previously announced acquisition of Unified Grocers, Inc. in a transaction valued at $390 million, comprised of $114 million in cash to Unified Grocers’ shareholders for 100 percent of the outstanding stock of Unified Grocers plus the assumption and pay-off at closing of Unified Grocers’ net debt of approximately $276 million.

“The completion of this transaction is a significant step forward for SUPERVALU and the growth of our wholesale business,” said Mark Gross, SUPERVALU’s President and Chief Executive Officer. “Our teams are fully engaged in the important work of integrating these two great organizations with a continued focus on delivering for our customers and stockholders. We’re excited about working with the many talented associates to supply and serve our expanded and highly diverse customer base.”

About SUPERVALU INC.
(The following information on sales, store counts and employees is as of SUPERVALU’s last fiscal year end and does not include Unified Grocers)

SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $12 billion in fiscal 2017. SUPERVALU serves customers across the United States through a network of 2,363 stores including 1,902 stores operated by wholesale customers serviced primarily by the Company’s food distribution business and 217 traditional retail grocery stores operated under five retail banners in six geographic regions (store counts as of February 25, 2017). Headquartered in Minnesota, SUPERVALU has approximately 29,000 employees.

Founded in 1922, Unified Grocers is a wholesale grocery distributor that supplies independent retailers throughout the western United States. Unified and its subsidiaries offer independent retailers all the resources they need to compete in the supermarket industry.

For more information about SUPERVALU visit www.supervalu.com.

Investor Contact:
Steve Bloomquist
952-828-4144
steve.j.bloomquist@supervalu.com

Media Contact:
Jeff Swanson
952-903-1645
jeffrey.s.swanson@supervalu.com

Source: SUPERVALU INC.

SUPERVALU completed refinancing of its existing senior secured term loan credit agreement

MINNEAPOLIS, 2017-Jun-09 — /EPR Retail News/ — SUPERVALU INC. (NYSE: SVU) today (Jun. 8, 2017) announced it has successfully completed the refinancing of its existing senior secured term loan credit agreement. The new seven-year senior secured term loan credit agreement provides for an initial term loan facility of $525 million, which was used to refinance outstanding loans under the prior term loan credit agreement, and a delayed draw term loan facility of $315 million which is expected to be drawn down in full for the purpose of consummating the acquisition of Unified Grocers, Inc. The acquisition is currently expected to close in late June, and remains subject to customary closing conditions.

Borrowings under this new term loan credit agreement will bear interest at the rate of LIBOR plus 3.50 percent with a floor on LIBOR set at 1.00 percent, reflecting a 1.00 percent rate reduction compared to the prior term loan credit agreement for LIBOR based loans. The new term loan credit agreement will mature on June 8, 2024. However, if the Company has not repaid its 6.75 percent senior notes due June 1, 2021 or its 7.75 percent senior notes due November 15, 2022 by the date that is 91 days prior to the respective maturity date of such notes, the term loan will mature on the date that is 91 days prior to the maturity date of such notes. In addition, the covenants in the new term loan credit agreement were modified to give the Company additional strategic and operational flexibility.

Goldman Sachs Bank USA, RBC Capital Markets, Barclays, Credit Suisse, BMO Capital Markets and Citigroup acted as joint lead book-runners and joint lead arrangers while Wells Fargo Securities, U.S. Bank N.A., Rabobank and Natixis Securities acted as co-managers on the refinancing.

About SUPERVALU INC.

SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $12 billion. SUPERVALU serves customers across the United States through a network of 2,363 stores composed of 1,902 stores operated by wholesale customers serviced primarily by the Company’s food distribution business and 217 traditional retail grocery stores operated under five retail banners in six geographic regions (store counts as of February 25, 2017). Headquartered in Minnesota, SUPERVALU has approximately 29,000 employees. For more information about SUPERVALU visit www.supervalu.com.

Investor Contact:
Steve Bloomquist
952-828-4144
steve.j.bloomquist@supervalu.com

Media Contact:
Jeff Swanson
952-903-1645
jeffrey.s.swanson@supervalu.com

Source: SUPERVALU INC.

SUPERVALU to present at Barclays High Yield Bond & Syndicated Loan Conference in Colorado Springs

MINNEAPOLIS, 2017-Jun-03 — /EPR Retail News/ — SUPERVALU INC. (NYSE: SVU) will participate in next week’s Barclays High Yield Bond & Syndicated Loan Conference in Colorado Springs. Chief Operating Officer and Chief Financial Officer Bruce Besanko will address investors at approximately 12:10 p.m. (Eastern Time) on Thursday June 8, 2017.

A live webcast of this event will be available through the SUPERVALU website at http://www.supervaluinvestors.com (click on microphone icon). A replay will be archived on SUPERVALU’s website by going to the “Investors” link and clicking on “Presentations and Webcasts.”

About SUPERVALU INC.
SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $12 billion. SUPERVALU serves customers across the United States through a network of 2,363 stores composed of 1,902 stores operated by wholesale customers serviced primarily by the Company’s food distribution business and 217 traditional retail grocery stores operated under five retail banners in six geographic regions (store counts as of February 25, 2017). Headquartered in Minnesota, SUPERVALU has approximately 29,000 employees. For more information about SUPERVALU visit www.supervalu.com.

Investor Contact:
Steve Bloomquist
952-828-4144
steve.j.bloomquist@supervalu.com

Media Contact:
Jeff Swanson
952-903-1645
jeffrey.s.swanson@supervalu.com

Source: SUPERVALU INC.

SUPERVALU President and CEO Mark Gross to address investors at RBC Capital Markets Consumer and Retail Conference

MINNEAPOLIS, 2017-May-24 — /EPR Retail News/ — SUPERVALU INC. (NYSE: SVU) will participate in next week’s RBC Capital Markets Consumer and Retail Conference in Boston. President and CEO Mark Gross will address investors at approximately 9:20 a.m. (Eastern Time) on Wednesday, May 31, 2017.

A live webcast of this event will be available through the SUPERVALU website at http://www.supervaluinvestors.com (click on microphone icon). A replay will be archived on SUPERVALU’s website by going to the “Investors” link and clicking on “Presentations and Webcasts.”

About SUPERVALU INC.
SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $12 billion. SUPERVALU serves customers across the United States through a network of 2,363 stores composed of 1,902 stores operated by wholesale customers serviced primarily by the Company’s food distribution business and 217 traditional retail grocery stores operated under five retail banners in six geographic regions (store counts as of February 25, 2017). Headquartered in Minnesota, SUPERVALU has approximately 29,000 employees. For more information about SUPERVALU visit www.supervalu.com.

Investor Contact:
Steve Bloomquist
952-828-4144
steve.j.bloomquist@supervalu.com

Media Contact:
Jeff Swanson
952-903-1645
jeffrey.s.swanson@supervalu.com

Source: SUPERVALU INC.

Supervalu Finishes Fiscal 2017 With Momentum

  • Fourth quarter net earnings from continuing operations of $6 million; adjusted EBITDA of $124 million
  • Fourth quarter net earnings per share from continuing operations of $0.02; adjusted earnings per share of $0.13
  • Completion of Save-A-Lot sale in fourth quarter strengthened balance sheet
  • Agreement to acquire Unified Grocers announced in April 2017
  • Total outstanding debt and pension obligation reduced by $1.04 billion and $248 million, respectively, in fiscal 2017

MINNEAPOLIS, 2017-Apr-29 — /EPR Retail News/ — SUPERVALU INC. (NYSE: SVU) today (Apr. 25, 2017) reported fourth quarter fiscal 2017 consolidated net sales of $2.91 billion and net earnings from continuing operations of $6 million, or $0.02 per diluted share, which included $32 million in after-tax charges and costs related to an asset impairment charge, unamortized financing cost charges and a pension settlement charge. When adjusted for these items, fourth quarter fiscal 2017 net earnings from continuing operations were $38 million, or $0.13 per diluted share.

Net earnings from continuing operations for last year’s fourth quarter were $30 million, or $0.10 per diluted share, which included $9 million in after-tax charges and costs related to debt refinancing charges and store closure charges and costs. When adjusted for these items, fourth quarter fiscal 2016 net earnings from continuing operations were $39 million, or $0.14 per diluted share.

In the fourth quarter of fiscal 2017, SUPERVALU completed the sale of its Save-A-Lot business. The results of operations, financial position and cash flows of the Save-A-Lot business are presented as discontinued operations for all periods, and SUPERVALU’s results from continuing operations no longer include the sales, operating earnings, net earnings, and adjusted EBITDA from Save-A-Lot. Certain costs previously charged to Save-A-Lot are included in SUPERVALU’s results from continuing operations and now relate to performing under the services agreement entered into with Save-A-Lot. For comparability purposes, management includes a pro forma adjustment to its adjusted EBITDA that reflects the fees SUPERVALU expects to recognize under the services agreement for the applicable periods prior to the sale. [See tables 1-6 for a reconciliation of GAAP and non-GAAP (adjusted) results appearing in this release.]

“We finished fiscal 2017 with momentum in our Wholesale business and an improved balance sheet resulting from the sale of Save-A-Lot,” said President and CEO Mark Gross. “I’m very excited about our agreement to acquire Unified Grocers as it brings together two great companies to create one of the nation’s leading grocery wholesale organizations. At the same time, we are working to fundamentally improve the shopping experience in our retail stores and with new leadership and renewed passion we are focused on changing our operating results. I remain optimistic for growth and believe strongly in the path our team is pursuing to achieve it.”

Fourth Quarter Results – Continuing Operations

Fourth quarter net sales were $2.91 billion compared to $2.89 billion last year, an increase of $16 million or 0.6 percent. Total net sales within the Wholesale segment increased 3.0 percent. Retail identical store sales were negative 5.8 percent. Fees earned under services agreements in the fourth quarter were $42 million compared to $44 million last year.

Gross profit for the fourth quarter was $435 million, or 15.0 percent of net sales. Last year’s fourth quarter gross profit was $431 million, or 14.9 percent of net sales. The gross profit rate increase compared to last year is primarily driven by higher gross margins and vendor allowances as well as lower inventory shrink costs.

Selling and administrative expenses in the fourth quarter were $400 million and included a $41 million asset impairment charge and a $1 million pension settlement charge. When adjusted for these items, selling and administrative expenses were $358 million, or 12.3 percent of net sales. Selling and administrative expenses in last year’s fourth quarter were $356 million and included $6 million of store closure charges and costs. When adjusted for these items, last year’s selling and administrative expenses were $350 million, or 12.1 percent of net sales. The increase in the adjusted selling and administrative expenses rate compared to last year was primarily driven by higher employee costs, partially offset by lower pension expense.

Net interest expense for the fourth quarter was $40 million which included $12 million in unamortized financing cost charges. When adjusted for this item, net interest expense was $28 million. Last year’s fourth quarter net interest expense was $47 million which included $10 million in debt refinancing costs and unamortized financing cost charges. When adjusted for these items, last year’s fourth quarter interest expense was $37 million. The decrease in adjusted net interest expense was primarily driven by lower outstanding debt balances associated with the use of proceeds from the sale of Save-A-Lot.

Income tax benefit was $9 million for the fourth quarter compared to $0 million in last year’s fourth quarter. The fourth quarter of both years included discrete items that impacted the effective tax rate.

Wholesale

Fourth quarter Wholesale net sales were $1.79 billion, compared to $1.74 billion last year, an increase of 3.0 percent. The net sales increase is primarily due to sales to new customers and increased sales from new stores operated by existing customers, partially offset by stores from the prior year no longer being supplied by the Company.

Wholesale operating earnings in the fourth quarter were $64 million, or 3.6 percent of net sales. Last year’s Wholesale operating earnings in the fourth quarter were $50 million, or 2.9 percent of net sales. The increase in Wholesale operating earnings was driven by higher gross margins and vendor allowances.

Retail

Fourth quarter Retail net sales were $1.07 billion, compared to $1.11 billion last year, a decrease of 3.2 percent. The net sales decrease reflects negative identical store sales of 5.8 percent, partially offset by sales from acquired and new stores.

Retail operating loss in the fourth quarter was $27 million and included a $41 million asset impairment charge. When adjusted for this item, Retail operating earnings were $14 million, or 1.3 percent of net sales. Last year’s Retail operating earnings in the fourth quarter were $30 million, or 2.7 percent of net sales. The decrease in Retail operating earnings, as adjusted, was driven by the impact of lower sales and higher employee costs partially due to acquired and new stores.

Corporate

Fourth quarter fees earned under services agreements were $42 million compared to $44 million last year.

Net Corporate operating loss in the fourth quarter was $2 million and included $1 million of costs related to a pension settlement charge. When adjusted for this item, net Corporate operating loss was $1 million. Last year’s fourth quarter net Corporate operating loss was $5 million and included $6 million in store closure charges and costs. When adjusted for this item, last year’s net Corporate operating income was $1 million. The decrease in net Corporate operating earnings, as adjusted, was primarily driven by higher employee costs, partially offset by lower pension expense.

Discontinued Operations

Fiscal 2017 included a $577 million after-tax gain on the sale of Save-A-Lot, recorded in Income from discontinued operations, net of tax.

Cash Flows – Continuing Operations

Fiscal 2017 net cash flows provided by operating activities of continuing operations were $308 million, compared to $245 million last year, primarily reflecting lower levels of cash utilized toward operating assets and liabilities. Fiscal 2017 net cash flows used in investing activities of continuing operations were $198 million, compared to $187 million last year, primarily reflecting an increase in capital spending. Fiscal 2017 net cash flows used in financing activities of continuing operations were $1,106 million, compared to $192 million last year, primarily reflecting the required debt prepayments as part of the Save-A-Lot sale.

Conference Call ­­­

A conference call to review the fourth quarter and full year fiscal 2017 results is scheduled for 9:00 a.m. central time today. The call will be webcast live at www.supervaluinvestors.com (click on microphone icon). A replay of the call will be archived at www.supervaluinvestors.com. To access the website replay, go to the “Investors” link and click on “Presentations and Webcasts.”

About SUPERVALU INC.

SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $12 billion. SUPERVALU serves customers across the United States through a network of 2,363 stores including 1,902 stores operated by wholesale customers serviced primarily by the Company’s food distribution business and 217 traditional retail grocery stores operated under five retail banners in six geographic regions (store counts as of February 25, 2017). Headquartered in Minnesota, SUPERVALU has approximately 29,000 employees. For more information about SUPERVALU visit www.supervalu.com.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. Except for the historical and factual information, the matters set forth in this news release and related conference call, particularly those pertaining to SUPERVALU’s expectations, guidance, or future operating results, and other statements identified by words such as “estimates,” “expects,” “projects,” “plans,” “intends,” “outlook” and similar expressions are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including competition, ability to execute operations and initiatives, ability to realize benefits from acquisitions and dispositions, ability to grow sales, reliance on the wholesale customers’ performance, failure to perform services, wind down of the Company’s relationships with Albertson’s LLC and New Albertson’s, Inc., ability to maintain or increase margins or identical store sales, restrictive covenants from indebtedness, labor relations issues, escalating costs of providing employee benefits, intrusions to and disruption of information technology systems, changes in military business, adequacy of insurance, asset impairment charges, fluctuations in our common stock price, impact of economic conditions, commodity pricing, severe weather, disruption to supply chain and distribution network, governmental regulation, food and drug safety issues, legal proceedings, pharmacy reimbursement and health care financing, intellectual property protection, and other risk factors relating to our business or industry as detailed from time to time in SUPERVALU’s reports filed with the SEC. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required, SUPERVALU undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Contact:
Steve Bloomquist
952-828-4144
steve.j.bloomquist@supervalu.com

Media Contact:
Jeff Swanson
952-903-1645
jeffrey.s.swanson@supervalu.com

Source: SUPERVALU INC.

SUPERVALU announces plans for its fourth annual National Expo

Fourth annual event for independent grocery retailers builds on last year’s success

EDEN PRAIRIE, Minn., 2017-Apr-08 — /EPR Retail News/ — SUPERVALU INC. (NYSE: SVU) today (Apr. 6, 2017) announced plans for its fourth annual National Expo, which will be held July 25-27 at the RiverCentre in St. Paul, Minn. The event will feature a full day of educational seminars and workshops tailored to help independent grocery retailers serve their customers better, as well as access to more than 300 vendors across nearly 130,000 square feet of exhibit space.

“In a short period of time, the National Expo has become one of the must-attend events in the grocery industry,” said Mike Stigers, Executive Vice President, Wholesale at SUPERVALU. “The Expo gives independent retailers the opportunity to learn from experts through thought leadership content, industry trend discussions, and networking opportunities all geared toward strengthening relationships and further enhancing their businesses. It also offers retailers the chance to meet personally with hundreds of vendors to hear more about new products and solutions that can help them drive additional sales in their stores.”

Retailers attending the 2017 Expo can expect to find a showcase of innovation, featuring new items, new merchandising solutions and new in-store concepts spanning all aspects of grocery retailing. Retailers also will have access to special products and promotions. One of the Expo’s favorite features is the Monster Buys and Auction items event, where prices on merchandise continue to drop as more quantities are purchased. Last year, more than 200 separate items were featured as part of the Monster Buys and Auction.

Another highlight of the Expo is the Master Marketer Awards ceremony, which will be held on Thursday, July 27. The awards recognize the best merchandising, marketing and community relations initiatives from SUPERVALU’s independent retailers over the past year. Last year, Karns Foods, with eight locations in central Pennsylvania, was named the Grand Master Marketer, the top award presented.

Attendance at the National Expo is by invitation only. SUPERVALU customers will receive information about event registration, travel and hotel directly through their account managers. Vendors should contact their region merchandising team for information on applying for a booth. Other interested industry personnel should email the National Expo event coordinators directly at supervaluexpo@supervalu.com.

About SUPERVALU INC.
SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $13 billion. SUPERVALU serves customers across the United States through a network of 2,067 stores, composed of 1,850 stores operated by wholesale customers serviced primarily by the Company’s food distribution business, 195 traditional retail grocery stores operated under five retail banners, and 22 stores operated under the Shop ‘N Save name in Maryland, Pennsylvania, Virginia, and West Virginia (store counts as of December 3, 2016). Headquartered in Minnesota, SUPERVALU has approximately 30,000 employees. For more information about SUPERVALU, visit www.supervalu.com.

Media Contact:
SUPERVALU
Mike Wilken
952-828-4558
michael.wilken@supervalu.com

Source: SUPERVALU INC.

SUPERVALU finalized the sale of its Save-A-Lot business to Onex Corporation for $1.365 billion in cash

EDEN PRAIRIE, Minn., 2016-Dec-07 — /EPR Retail News/ — SUPERVALU INC. (NYSE: SVU) today (Dec. 5, 2016) announced it has finalized the sale of its Save-A-Lot business to an affiliate of Onex Corporation (TSX: ONEX) for $1.365 billion in cash, subject to customary closing adjustments. With the sale of Save-A-Lot, SUPERVALU is now a more focused company. In connection with the closing of the sale, SUPERVALU and Save-A-Lot have entered into a five-year professional services agreement pursuant to which SUPERVALU will continue providing certain back office services to Save-A-Lot.

“With the successful completion of the Save-A-Lot sale, we are well positioned for the future with a stronger balance sheet, the opportunity to more strategically invest in our business, and the ability to more keenly focus on our core business as a leading grocery wholesaler,” said SUPERVALU President and CEO, Mark Gross. “We also look forward to continuing our relationship with Save-A-Lot as one of our important professional services customers.”

SUPERVALU also confirmed today that it has used $750 million of the net proceeds from the sale to prepay that portion of its outstanding term loan balance. The Company intends to use the remaining net sale proceeds to further reduce debt and improve its capital structure, contribute to its pension plan, as well as to fund corporate and growth initiatives.

Advisors

Barclays Capital Inc. and Greenhill & Co., LLC acted as financial advisors to SUPERVALU, and Wachtell, Lipton, Rosen & Katz is serving as its legal advisor.

About SUPERVALU INC.

Following today’s closing SUPERVALU is now organized into two primary business segments, Wholesale and Retail. SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $13 billion. SUPERVALUserves customers across the United States through a network of 2,012 stores composed of 1,815 stores operated by wholesale customers serviced primarily by the Company’s food distribution business and 197 traditional retail grocery stores operated under five retail banners (store counts as of September 10, 2016). In addition, the Company operates 22 stores under the Shop ‘N Save name in Maryland, Pennsylvania, Virginia and West Virginia. Headquartered in Minnesota, SUPERVALU has approximately 30,000 employees. For more information about SUPERVALU visit www.supervalu.com.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.

Except for the historical and factual information contained herein, the matters set forth in this communication, particularly those pertaining to SUPERVALU’S expectations, guidance, or future operating results, and other statements identified by words such as “estimates,” “expects,” “projects,” “plans,” “intends,” and similar expressions are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including our ability to recognize benefits from the sale of Save-A-Lot, our ongoing relationship with Save-A-Lot, changes in the planned use of proceeds from the transaction and other risk factors relating to our business or industry as detailed from time to time in SUPERVALU’s reports filed with the SEC. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required, SUPERVALU undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

SUPERVALU Investor Contact:
Steve Bloomquist
952-828-4144
steve.j.bloomquist@supervalu.com

SUPERVALU Media Contact:
Jeff Swanson
952-903-1645
jeffrey.s.swanson@supervalu.com

Source: SUPERVALU INC.

SUPERVALU selected by America’s Food Basket (AFB) as grocery wholesaler and supplier

EDEN PRAIRIE, Minn. & LAKE SUCCESS, N.Y., 2016-Nov-10 — /EPR Retail News/ —SUPERVALU INC. (NYSE:SVU) and America’s Food Basket (AFB) today (Nov. 9, 2016) announced that SUPERVALU has been selected by AFB as a grocery wholesaler and supplier. The parties have entered into a long-term agreement for SUPERVALU to supply the AFB member stores with traditional grocery products across a range of categories including meat, deli, bakery, grocery, fresh produce, frozen foods and dairy. SUPERVALU will distribute AFB’s “Ideal Brands” as well as provide AFB stores with the ability to offer SUPERVALU’s private brand products including Essential Everyday®, Wild Harvest®, and Culinary Circle®.

Founded in 2007 and headquartered in Lake Success, New York, AFB is a regional cooperative serving 47 neighborhood stores located primarily in New York and parts of New England. AFB stores range in size from 5,000 to almost 20,000 square feet and deliver a diverse set of products to meet the needs of their local communities and customers. AFB stores operate under three primary banners: America’s Food Basket, Ideal Food Basket and Superfi Emporium.

“America’s Food Basket is a terrific regional co-op that delivers a great neighborhood grocery experience for its customers,” said Mike Stigers, Executive Vice President of SUPERVALU’s Wholesale business. “Our plans to continue to grow SUPERVALU’s wholesale business took another step forward today with the addition of America’s Food Basket.”

SUPERVALU and AFB expect that a few of the 47 AFB member stores will have transitioned to SUPERVALU supply before the end of December 2016 with the balance of the remaining stores likely to transition to SUPERVALU supply during the first quarter of calendar 2017.

“America’s Food Basket is moving into our fourth year of growth while at the same time seeking opportunities to build our business by exploring new avenues for operational excellence,” said Dan Cabassa, CEO, America’s Food Basket. “We’re pleased to announce this relationship with SUPERVALU as we believe it will help us deliver a great offering for our shoppers.”

About America’s Food Basket

America’s Food Basket, LLC. is a cooperative which supports and unifies independent retail stores across the Northeast United States operating in New Jersey, New York, Connecticut, Rhode Island, and Massachusetts. The Company leverages the size of its purchases and merchandising operations to deliver the best cost and efficiencies for its member stores. The stores operating under three principle banners, America’s Food Basket, Ideal Food Basket, and Superfi Emporium sell groceries and provide payment services at its independent member retail locations. The company also provides a line of grocery, dairy, and fresh products under its private label brand, Ideal Brands, which can be viewed on its webpage www.afbasket.com.

About SUPERVALU INC.

SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $18 billion. SUPERVALU serves customers across the United States through a network of 3,382 stores composed of 1,815 stores operated by wholesale customers serviced primarily by the Company’s food distribution business; 1,370 Save-A-Lot stores, of which 888 are operated by licensee owners; and 197 traditional retail grocery stores (store counts as of September 10, 2016). Headquartered in Minnesota, SUPERVALU has approximately 40,000 employees. For more information about SUPERVALU visit www.supervalu.com.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.

Except for the historical and factual information contained herein, the matters set forth in this news release, particularly those pertaining to SUPERVALU’s expectations, guidance, or future operating results, and other statements identified by words such as “estimates,” “anticipates,” “expects,” “projects,” “plans,” “intends” and similar expressions are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including uncertainties as to the timing of the transition of the America’s Food Basket stores and the resulting business impacts of this new supply agreement. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required, SUPERVALU undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Contact:
Steve Bloomquist
952-828-4144
steve.j.bloomquist@supervalu.com

Media Contact:
Jeff Swanson
952-903-1645
jeffrey.s.swanson@supervalu.com

America’s Food Basket:
Dan Cabassa
516-502-2509 ext. 101
dcabassa@afbasket.com

Source: SUPERVALU INC.

SUPERVALU’s outstanding debt further reduced during Q2-FY2017

  • Net earnings from continuing operations of $30 million; Adjusted EBITDA of $147 million
  • Net earnings per share from continuing operations of $0.11; adjusted earnings per share of $0.10
  • Outstanding debt further reduced by approximately $100 million in the quarter

MINNEAPOLIS, 2016-Oct-21 — /EPR Retail News/ — SUPERVALU INC. (NYSE: SVU) today reported second quarter fiscal 2017 consolidated net sales of $3.87 billion and net earnings from continuing operations of $30 million, or $0.11 per diluted share, which included a net $2 million after-tax gain, comprised of a fee received from a supply agreement termination, partially offset by store closure charges and costs as well as costs related to the potential separation of Save-A-Lot. When adjusted for these items, second quarter fiscal 2017 net earnings from continuing operations were $28 million, or $0.10 per diluted share.

Net earnings from continuing operations for last year’s second quarter were $31 million, or $0.11 per diluted share, which included $6 million in after-tax costs related to the potential separation of Save-A-Lot and severance costs. When adjusted for these items, second quarter fiscal 2016 net earnings from continuing operations were $37 million, or $0.13 per diluted share. [See tables 1-6 for a reconciliation of GAAP and non-GAAP (adjusted) results appearing in this release.]

“As we expected, the transformation of our business continues to take time, but I am optimistic about our ability to grow our wholesale business by adding new customers, securing long-term supply agreements with existing customers, and expanding overall product sales to all customers,” said President and CEO Mark Gross. “We expect wholesale sales in the second half of this year to be higher than last year as we add new customers, grow our base business, and cycle select customer losses from last year.”

Second Quarter Results – Continuing Operations

Second quarter net sales were $3.87 billion compared to $4.06 billion last year, a decrease of $197 million or 4.8 percent. Total net sales within the Wholesale segment decreased 5.5 percent. Retail identical store sales were negative 5.9 percent. Save-A-Lot network identical store sales were negative 5.2 percent. Identical store sales for corporate stores within the Save-A-Lot network were negative 5.0 percent. Fees earned under transition services agreements (“TSAs”) in the second quarter were $41 million compared to $48 million last year.

Gross profit for the second quarter was $562 million, or 14.5 percent of net sales and included net costs of $1 million related to store closures. When adjusted for this item, gross profit was $563 million, or 14.6 percent of net sales. Last year’s second quarter gross profit was $583 million, or 14.4 percent of net sales. The gross profit rate increase compared to last year is primarily due to higher product margin rates and new Save-A-Lot corporate stores.

Selling and administrative expenses in the second quarter were $474 million and included a fee received from a supply agreement termination of $9 million, partially offset by $3 million in costs and charges related to store closures and $1 million in costs related to the potential separation of Save-A-Lot. When adjusted for these items, selling and administrative expenses were $479 million, or 12.4 percent of net sales. Selling and administrative expenses in last year’s second quarter were $489 million and included $4 million of costs related to the potential separation of Save-A-Lot and $4 million of severance costs. When adjusted for these items, second quarter fiscal 2016 selling and administrative expenses were $481 million, or 11.9 percent of net sales. The increase in the selling and administrative expense rate compared to last year is primarily due to the deleveraging impact of lower sales and new Save-A-Lot corporate stores, partially offset by lower pension expense.

Net interest expense for the second quarter was $41 million. Last year’s second quarter interest expense was $44 million. The decrease in interest expense was driven by lower average debt balances.

Income tax expense was $18 million, or 36.2 percent of pre-tax earnings, for the second quarter, compared to an income tax expense of $19 million, or 40.0 percent of pre-tax earnings, in last year’s second quarter.

Wholesale

Second quarter Wholesale net sales were $1.73 billion, compared to $1.83 billion last year, a decrease of 5.5 percent. The net sales decrease is primarily due to stores from the prior year no longer supplied by the Company, partially offset by increased sales to new stores operated by existing customers and new customers.

Wholesale operating earnings in the second quarter were $58 million, or 3.3 percent of net sales, and included a fee received from a supply agreement termination of $9 million. When adjusted for this item, Wholesale operating earnings were $49 million, or 2.8 percent of net sales, flat to last year’s Wholesale operating earnings in the second quarter which represented 2.7 percent of net sales.

Save-A-Lot

Second quarter Save-A-Lot net sales were $1.06 billion, compared to $1.09 billion last year, a decrease of 2.8 percent. The net sales decrease reflects network identical store sales of negative 5.2 percent, partially offset by new corporate and licensed stores.

Save-A-Lot operating earnings in the second quarter were $22 million, or 2.1 percent of net sales. Last year’s Save-A-Lot operating earnings in the second quarter were $32 million, or 3.0 percent of net sales. The decrease in Save-A-Lot operating earnings was driven by higher employee-related costs and increased promotional costs, partially offset by higher product margin rates.

Retail

Second quarter Retail net sales were $1.03 billion, compared to $1.09 billion last year, a decrease of 5.4 percent. The net sales decrease reflects identical store sales of negative 5.9 percent, partially offset by sales from new stores.

Retail operating loss in the second quarter was $12 million, or negative 1.2 percent of net sales and included $4 million of store closure charges and costs. When adjusted for this item, Retail operating loss was $8 million. Last year’s Retail operating earnings were$10 million, or 0.9 percent of net sales. The decrease in Retail operating earnings was driven by lower sales and higher employee-related costs due to new corporate stores.

Corporate

Second quarter fees earned under the TSAs were $41 million compared to $48 million last year.

Net Corporate operating earnings in the second quarter were $20 million and included $1 million of costs related to the potential separation of Save-A-Lot. When adjusted for this item, net Corporate operating earnings were $21 million. Last year’s second quarter net Corporate operating earnings were $3 million and included $4 million of costs related to the potential separation of Save-A-Lot and $4 million of severance costs. When adjusted for these items, last year’s net Corporate operating earnings were $11 million. The improvement in net Corporate operating earnings was primarily driven by lower pension expense and lower employee-related costs.

Cash Flows – Continuing Operations

Fiscal 2017 year-to-date net cash flows provided by operating activities of continuing operations were $275 million compared to $276 million last year. Fiscal 2017 year-to-date net cash flows used in investing activities of continuing operations were $115 millioncompared to $119 million last year. Fiscal 2017 year-to-date net cash flows used in financing activities of continuing operations were$163 million compared to $25 million last year, reflecting higher payments on debt obligations.

Discontinued Operations

On October 17, 2016, SUPERVALU INC. announced it had reached an agreement with Onex Corporation to sell its Save-A-Lot business. This transaction is anticipated to be completed by January 31, 2017. As a result of the agreement, the Company anticipates presenting the Save-A-Lot business being disposed as discontinued operations for all periods within future earnings releases, and Form 10-Q and 10-K filings.

Conference Call

A conference call to review the second quarter results is scheduled for 9:00 a.m. central time today. The call will be webcast live at www.supervaluinvestors.com (click on microphone icon). A replay of the call will be archived at www.supervaluinvestors.com. To access the website replay go to the “Investors” link and click on “Presentations and Webcasts.”

About SUPERVALU INC.
SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $18 billion.SUPERVALU serves customers across the United States through a network of 3,382 stores composed of 1,815 stores operated by wholesale customers serviced primarily by the Company’s food distribution business; 1,370 Save-A-Lot stores, of which 888 are operated by licensee owners; and 197 traditional retail grocery stores (store counts as of September 10, 2016). Headquartered inMinnesota, SUPERVALU has approximately 40,000 employees. For more information about SUPERVALU visit www.supervalu.com.

Source: SUPERVALU INC.

SUPERVALU INC.
Investor Contact
Steve Bloomquist, 952-828-4144
steve.j.bloomquist@supervalu.com
or
Media Contact
Jeff Swanson, 952-903-1645
jeffrey.s.swanson@supervalu.com

SUPERVALU to sell Save-A-Lot business to Onex Corporation for $1.365 billion in cash

MINNEAPOLIS, 2016-Oct-19 — /EPR Retail News/ — SUPERVALU INC. (NYSE:SVU) today (Oct. 17, 2016) announced that it has entered into a definitive agreement whereby an affiliate of Onex Corporation (TSX:OCX) will acquire SUPERVALU’s Save-A-Lot business for$1.365 billion in cash, subject to customary closing adjustments. In connection with the sale, SUPERVALU and Save-A-Lot will enter into a five-year professional services agreement. The sale of Save-A-Lot is expected to be completed by January 31, 2017, subject to regulatory approvals and other customary closing conditions.

“Today’s announcement is the result of a thorough process to maximize the value of the Save-A-Lot business and best position SUPERVALU for future success,” said SUPERVALU Non-Executive Chairman of the Board, Jerry Storch. “SUPERVALU is successfully executing on its long term strategic vision and positioning the Company for continued growth and value creation. We are confident that this transaction will create exciting opportunities for both SUPERVALU and Save-A-Lot.”

“The sale of Save-A-Lot is another important step in SUPERVALU’s transformation. It provides us with a stronger balance sheet that will allow us to further build on our core strengths and growth opportunities,” said SUPERVALU President and CEO, Mark Gross. “It has been a pleasure to work with the Save-A-Lot team, and, once this transaction is completed, I look forward to continuing to work with them as one of our largest professional services customers.”

Under the terms of the professional services agreement, SUPERVALU will provide Save-A-Lot with certain services and support functions for its day-to-day operations, including cloud services, merchandising technology, payroll, finance, and other technology and hosting services.

SUPERVALU expects to use the net proceeds from the sale to prepay at least $750 million against its outstanding term loan balance. The Company intends to use the remaining net sale proceeds to further reduce debt and improve its capital structure, as well as to fund corporate and growth initiatives.

Advisors

Barclays Capital Inc. and Greenhill & Co., LLC acted as financial advisors to SUPERVALU, and Wachtell, Lipton, Rosen & Katz is serving as its legal advisor.

Conference Call

As previously announced, SUPERVALU will hold its fiscal 2017 second quarter conference call on Wednesday, October 19, 2016 at 9:00 a.m. Central Time, at which time SUPERVALU will also discuss the sale of Save-A-Lot in more detail. The call will be webcast live at www.supervaluinvestors.com (click on microphone icon).

About SUPERVALU

SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $18 billion. SUPERVALU serves customers across the United States through a network of 3,342 stores composed of 1,773 stores operated by wholesale customers serviced primarily by the Company’s food distribution business; 1,368 Save-A-Lot stores, of which 896 are operated by licensee owners; and 201 traditional retail grocery stores (store counts as of June 18, 2016). Headquartered in Minnesota, SUPERVALU has approximately 40,000 employees. For more information about SUPERVALU visit www.supervalu.com.

About Save-A-Lot

As one of the largest hard-discount grocery retailers in the United States, Save-A-Lot owns and operates 472 corporate stores, and services and supplies another 896 licensee-owned stores across the country (store counts as of June 18, 2016). With more than 1,300 stores in urban, suburban, and rural areas, Save-A-Lot reaches more than 5 million shoppers each week. Store sizes vary, but in general range in size between approximately 15,000-20,000 square feet. The stores provide a limited selection of national and exclusive store brand products with a focus on its fresh offerings including USDA-inspected beef, pork and poultry, and farm-fresh fruits and vegetables.

FORWARD-LOOKING STATEMENTS

Except for the historical and factual information contained herein, the matters set forth in this communication, particularly those pertaining to SUPERVALU’S expectations, guidance, or future operating results, and other statements identified by words such as “estimates,” “expects,” “projects,” “plans,” “intends,” and similar expressions are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the possibility that regulatory and other approvals and conditions to the transaction are not received or satisfied on a timely basis or at all; the possibility that modifications to the terms of the transaction may be required in order to obtain or satisfy such approvals or conditions; the possibility that Supervalu may not fully realize the projected benefits of the transaction; changes in the planned use of proceeds from the transaction; changes in the anticipated timing for closing the transaction; business disruption during the pendency of or following the transaction; diversion of management time on transaction-related issues; and the reaction of customers and other parties to the transaction and other risk factors relating to our business or industry as detailed from time to time in SUPERVALU’s reports filed with the SEC. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required, SUPERVALU undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Contact:
Steve Bloomquist
952-828-4144
steve.j.bloomquist@supervalu.com

Media Contact:
Jeff Swanson
952-903-1645
jeffrey.s.swanson@supervalu.com

Source: SUPERVALU INC.

SUPERVALU to hold its fiscal 2017 2Q conference call on Wednesday October 19, 2016

MINNEAPOLIS, 2016-Oct-12 — /EPR Retail News/ — SUPERVALU INC. (NYSE: SVU) will hold its fiscal 2017 second quarter conference call on Wednesday October 19, 2016 at 9:00 a.m. Central time. The call will be webcast live online at www.supervaluinvestors.com (click on microphone icon).

A replay of the conference call will be archived on SUPERVALU’s website under “Investors, Presentations and Webcasts.”

About SUPERVALU INC.
SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $18 billion. SUPERVALU serves customers across the United States through a network of 3,342 stores composed of 1,773 stores operated by wholesale customers serviced primarily by the Company’s food distribution business; 1,368 Save-A-Lot stores, of which 896 are operated by licensee owners; and 201 traditional retail grocery stores (store counts as of June 18, 2016). Headquartered in Minnesota, SUPERVALU has approximately 40,000 employees. For more information about SUPERVALU visit www.supervalu.com.

Investor Contact:
Steve Bloomquist
952-828-4144
steve.j.bloomquist@supervalu.com

Media Contact:
Jeff Swanson
952-903-1645
jeffrey.s.swanson@supervalu.com

Source: SUPERVALU INC.

SUPERVALU to serve as grocery wholesaler and distributor to The Fresh Market

MINNEAPOLIS, 2016-Aug-17 — /EPR Retail News/ — SUPERVALU INC. (NYSE:SVU) and THE FRESH MARKET, INC. today announced they have reached a long-term supply agreement for SUPERVALU to serve as a grocery wholesaler and distributor to The Fresh Market. Founded in 1982 and headquartered in Greensboro, North Carolina, The Fresh Market is a specialty retailer focused on providing delicious and healthy food and a high level of service to its customers.

“The Fresh Market is a terrific organization with a tremendous store base and a great consumer offering,” said SUPERVALU President and CEO Mark Gross. “The stores offer a great shopping experience. They are extremely well merchandised, meet customer demand with a keen focus on fresh, and provide a wonderful mix of traditional and specialty products. This is an excellent example of how our experience, strong distribution network and overall wholesale capabilities can serve larger grocery chains while also being flexible to the needs of specialty-focused retailers.”

“We are excited about this relationship with SUPERVALU,” said The Fresh Market President and CEO Rick Anicetti. “SUPERVALU’s experience in wholesale grocery and logistics capabilities aligns well with our strategic vision and will make them a valuable strategic partner for our future. This new relationship will be highly beneficial in enhancing our customer experience, with a focus on providing superior quality and freshness at a greater value.”

In its role as grocery wholesaler, SUPERVALU will supply The Fresh Market with traditional and signature grocery products across a range of categories including meat, deli, bakery, grocery, frozen foods and dairy. The parties intend for SUPERVALU to become The Fresh Market’s primary distributor upon the transition of The Fresh Market’s current distributor relationships. SUPERVALU anticipates it will begin serving some of The Fresh Market’s stores in the fall and will take on additional stores as the transition continues.

About The Fresh Market, Inc.
Founded in 1982, The Fresh Market, Inc. is a specialty grocery retailer focused on providing high-quality products in a unique and inviting atmosphere with a high level of customer service. The company currently operates 176 stores in 24 states across the U.S. For more information, please visit www.thefreshmarket.com.

About SUPERVALU INC.
SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $18 billion. SUPERVALU serves customers across the United States through a network of 3,342 stores composed of 1,773 stores operated by wholesale customers serviced primarily by the Company’s food distribution business; 1,368 Save-A-Lot stores, of which 896 are operated by licensee owners; and 201 traditional retail grocery stores (store counts as of June 18, 2016). Headquartered in Minnesota, SUPERVALU has approximately 40,000 employees. For more information about SUPERVALU visit www.supervalu.com.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.

Except for the historical and factual information contained herein, the matters set forth in this news release, particularly those pertaining to SUPERVALU’s expectations, guidance, or future operating results, and other statements identified by words such as “estimates,” “anticipates,” “expects,” “projects,” “plans,” “intends” and similar expressions are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including uncertainties as to the timing and scope of the transition of The Fresh Market stores and the resulting business impacts of this new supply agreement. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required, SUPERVALU undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise

For Investor Relations:
Steve Bloomquist
952-828-4144
Steve.bloomquist@supervalu.com

For Media:
Jeff Swanson
952-903-1645
Jeffrey.swanson@supervalu.com

Source: SUPERVALU INC.

SUPERVALU donates $100,000 to Feeding America to support its mission to end hunger

SUPERVALU donates $100,000 to Feeding America to support its mission to end hunger
SUPERVALU donates $100,000 to Feeding America to support its mission to end hunger

 

EDEN PRAIRIE, Minn, 2016-Aug-16 — /EPR Retail News/ — Representatives for Feeding America were on hand last evening at SUPERVALU’s 2016 National Expo to accept a $100,000 donation in support of the organization’s mission to end hunger. The donation was made possible through the collective efforts of SUPERVALU, and the independent grocery retailers and consumer packaged goods companies attending and exhibiting at this year’s Expo.

“All of the grocery retailers and companies involved in this effort know how important it is to give back to their communities,” said Mike Stigers, SUPERVALU Executive Vice President, Wholesale. “With this in mind, we thought the Expo provided the perfect opportunity to join together for the first time to make a difference for hunger relief in the communities where we live and work.”

The donation was presented to Bob Chatmas, chief operating officer of Second Harvest Heartland, a Minneapolis-St. Paul Feeding America member food bank, prior to a Wednesday night celebration featuring a performance by singer, songwriter and platinum record producer Andy Grammer, who has partnered with Feeding America to raise awareness for hunger relief as a member of its Entertainment Council.

Joining Stigers in the check presentation were National Grocers Association President and CEO Peter Larkin, Todd Tillemans, Executive Vice President of Customer Development at Unilever, and Brian Audette, Senior Vice President, Sales, Merchandising and Marketing at SUPERVALU.

“One in seven Americans struggles to get enough food to eat,” said Audette, who is also a Second Harvest Heartland board member. “This donation will make a tangible impact by providing food for those in need. For every $1 received, Feeding America is able to help provide 11 meals to people facing hunger. We are so grateful to the collective efforts of SUPERVALU and all of the independent grocery retailers and companies at the National Expo who helped to make this donation possible.”

Feeding America is the nation’s leading hunger relief organization with 200 member food banks serving all 50 states, the District of Columbia and Puerto Rico. Together, they provide food to more than 46 million people through 60,000 food pantries and meal programs in communities across America.

About SUPERVALU INC.
SUPERVALU INC. (NYSE: SVU) is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $18 billion. SUPERVALU serves customers across the United States through a network of 3,342 stores composed of 1,773 stores operated by wholesale customers serviced primarily by the company’s food distribution business; 1,368 Save-A-Lot stores, of which 896 are operated by licensee owners; and 201 traditional retail grocery stores (store counts as of June 18, 2016). Headquartered in Minnesota, SUPERVALU has approximately 40,000 employees. For more information about SUPERVALU, visit www.supervalu.com

About Feeding America:
Feeding America is the nationwide network of 200 food banks that leads the fight against hunger in the United States. Together, we provide food to more than 46 million people through 60,000 food pantries and meal programs in communities across America. Feeding America also supports programs that improve food security among the people we serve; educates the public about the problem of hunger; and advocates for legislation that protects people from going hungry. Individuals, charities, businesses and government all have a role in ending hunger. Donate. Volunteer. Advocate. Educate. Together we can solve hunger. Visit www.feedingamerica.org, find us on Facebook or follow us on Twitter.

Contact:
Jeff Swanson
952-903-1645
jeffrey.s.swanson@supervalu.com

Source: SUPERVALU INC.

###

SUPERVALU announces Save-A-Lot, Inc. filed Amendment No. 2 to Form 10 in connection with its possible spin-off into separate, publicly traded company

MINNEAPOLIS, 2016-Aug-12 — /EPR Retail News/ — SUPERVALU INC. (NYSE: SVU) today announced that Save-A-Lot, Inc., a wholly owned subsidiary of the Company, has filed Amendment No. 2 to its Form 10 Registration Statement (Form 10) with the U.S. Securities and Exchange Commission in connection with the possible spin-off of Save-A-Lot into a separate, publicly traded company. Among other changes, the amendment includes Save-A-Lot’s recent financial results.

With the filing of Amendment No. 2 to the Form 10, SUPERVALU is continuing to pursue a spin-off of Save-A-Lot as it also evaluates a possible sale of Save-A-Lot. At this time there can be no assurance that a separation of Save-A-Lot will be completed or that any other change in the Company’s overall structure or business model will occur.

About SUPERVALU INC.
SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $18 billion. SUPERVALU serves customers across the United States through a network of 3,342 stores composed of 1,773 stores operated by wholesale customers serviced primarily by the Company’s food distribution business; 1,368 Save-A-Lot stores, of which 896 are operated by licensee owners; and 201 traditional retail grocery stores (store counts as of June 18, 2016). Headquartered inMinnesota, SUPERVALU has approximately 40,000 employees. For more information about SUPERVALU visit www.supervalu.com.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.

Except for the historical and factual information contained herein, the matters set forth in this news release, particularly those pertaining to SUPERVALU’s expectations, guidance, or future operating results, and other statements identified by words such as “estimates,” “anticipates,” “expects,” “projects,” “plans,” “intends” and similar expressions are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including uncertainties as to the terms, timing or structure of any separation transaction and whether one will be consummated at all, the impact of any separation transaction on the businesses of SUPERVALU and the Save-A-Lot business on a standalone basis if the separation were to be completed, whether the operational and strategic benefits of a separation can be achieved and whether the costs and expenses of the separation can be controlled within expectations. Other factors include competition, ability to execute operations and initiatives, ability to realize benefits from acquisitions and dispositions, reliance on wholesale customers and licensees ability to grow or maintain identical store sales, ability to maintain or increase margins, substantial indebtedness, labor relations issues, escalating costs of providing employee benefits, relationships with Albertson’s LLC, New Albertson’s, Inc. and Haggen, intrusions to and disruption of information technology systems, impact of economic conditions, commodity pricing, governmental regulation, food and drug safety issues, legal proceedings, pharmacy reimbursement and health care financing, intellectual property protection, severe weather, natural disasters and adverse climate changes, disruption to supply chain and distribution network, changes in military business, adequacy of insurance, volatility in fuel and energy costs, asset impairment charges, fluctuations in our common stock price and other risk factors relating to our business or industry as detailed from time to time inSUPERVALU’s reports filed with the SEC. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required, SUPERVALU undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

Steve Bloomquist
952-828-4144
Steve.bloomquist@supervalu.com

For Media:
Jeff Swanson
952-903-1645
Jeffrey.Swanson@supervalu.com

Source: SUPERVALU INC.

SUPERVALU 1Q-FY2017: $5.20 billion consolidated net sales; net earnings from continuing operations at $47 million

MINNEAPOLIS, 2016-Jul-28 — /EPR Retail News/ — SUPERVALU INC. (NYSE: SVU) today reported first quarter fiscal 2017 consolidated net sales of $5.20 billion and net earnings from continuing operations of $47 million, or $0.17 per diluted share, which included $6 million in net after-tax charges and costs related to a debt refinancing and debt prepayment, the potential separation of Save-A-Lot, and a sales and use tax refund. When adjusted for these items, first quarter fiscal 2017 net earnings from continuing operations were $53 million, or $0.19 per diluted share.

Net earnings from continuing operations for last year’s first quarter were $63 million, or $0.23 per diluted share, which included$2 million in after-tax costs related to the potential separation of Save-A-Lot. When adjusted for this item, first quarter fiscal 2016 net earnings from continuing operations were $65 million, or $0.23 per diluted share. [See tables 1-4 for a reconciliation of GAAP and non-GAAP (adjusted) results appearing in this release.]

“We’re making great progress in growing our business as evidenced by our recent business announcements regarding our agreement with Marsh Supermarkets and our agreement to acquire 22 Food Lion grocery stores,” said President and CEO Mark Gross. “We’re also seeing great success in growing our wholesale produce business, and I believe we’ll sell more produce to our wholesale customers this fiscal year than our wholesale business has sold before.”

“It takes time to bring on new business and our first quarter results reflect the sales run rate we experienced coming out of last year’s fourth quarter,” continued Gross. “We’ve been replacing lost business, and I am confident in our ability to attract new customers and grow our business.”

First Quarter Results – Continuing Operations
First quarter net sales were $5.20 billion compared to $5.41 billion last year, a decrease of $211 million or 3.9 percent. Total net sales within the Wholesale segment decreased 7.6 percent. Retail identical store sales were negative 4.5 percent. Save-A-Lot network identical store sales were negative 1.4 percent. Identical store sales for corporate stores within the Save-A-Lot network were negative 1.0 percent. Fees earned under transition services agreements (“TSAs”) in the first quarter were $58 million compared to $64 million last year.

Gross profit for the first quarter was $779 million, or 15.0 percent of net sales. Last year’s first quarter gross profit was $810 million, or 15.0 percent of net sales. The gross profit rate is flat to last year and includes the impact of lower product margin rates from investments to lower prices to customers, including higher promotional activities, offset by a favorable business segment sales mix from new corporate Save-A-Lot stores.

Selling and administrative expenses in the first quarter were $646 million and included net costs of $1 million, comprised of costs related to the potential separation of Save-A-Lot, offset by a sales and use tax refund. When adjusted for these items, selling and administrative expenses were $645 million, or 12.4 percent of net sales. Selling and administrative expenses in last year’s first quarter were $652 million and included $3 million of costs related to the potential separation of Save-A-Lot. When adjusted for this item, first quarter fiscal 2016 selling and administrative expenses were $649 million, or 12.0 percent of net sales. The increase in the selling and administrative expense rate when compared to last year is primarily due to the deleveraging impact of lower sales and new corporate Save-A-Lot stores.

Net interest expense for the first quarter was $60 million and included $7 million of debt refinancing and debt prepayment charges and costs. When adjusted for these charges and costs, net interest expense was $53 million. Last year’s first quarter interest expense was $59 million. The decrease in interest expense was driven by lower average debt balances.

Income tax expense was $27 million, or 36.6 percent of pre-tax earnings, for the first quarter, compared to an income tax expense of $38 million, or 36.9 percent of pre-tax earnings in last year’s first quarter.

Wholesale
First quarter Wholesale net sales were $2.28 billion, compared to $2.46 billion last year, a decrease of 7.6 percent. The net sales decrease is primarily due to lost stores and lower sales to existing customers, partially offset by increased sales to new stores operated by existing customers and new customers.

Wholesale operating earnings in the first quarter were $64 million, or 2.8 percent of net sales. Last year’s Wholesale operating earnings in the first quarter were $77 million, or 3.1 percent of net sales. The decrease in Wholesale operating earnings was driven by lower sales and higher employee-related costs.

Save-A-Lot
First quarter Save-A-Lot net sales were $1.43 billion, compared to $1.41 billion last year, an increase of 1.7 percent. The net sales increase reflects new corporate and licensed stores, partially offset by network identical store sales of negative 1.4 percent.

Save-A-Lot operating earnings in the first quarter were $39 million, or 2.7 percent of net sales. Last year’s Save-A-Lot operating earnings in the first quarter were $51 million, or 3.6 percent of net sales. The decrease in Save-A-Lot operating earnings was driven by higher employee-related costs from new corporate stores, higher occupancy costs and higher depreciation expense driven by new corporate stores, and higher shrink.

Retail
First quarter Retail net sales were $1.43 billion, compared to $1.47 billion last year, a decrease of 2.9 percent. The net sales decrease reflects identical store sales of negative 4.5 percent, partially offset by sales from new stores.

Retail operating earnings in the first quarter were $8 million, or 0.6 percent of net sales. Last year’s Retail operating earnings were$33 million, or 2.2 percent of net sales. The decrease in Retail operating earnings was driven by lower sales and lower product margin rates from investments to lower prices to customers, including higher promotional activities.

Corporate
First quarter fees earned under the TSAs were $58 million compared to $64 million last year.

Net Corporate operating earnings in the first quarter were $22 million and included $3 million of costs related to the potential separation of Save-A-Lot and a $2 million sales and use tax refund. When adjusted for these items, net Corporate operating earnings were $23 million. Last year’s first quarter net Corporate operating loss was $3 million and included $3 million of costs related to the potential separation of Save-A-Lot. When adjusted for this item, last year’s net Corporate operating earnings were $0. The improvement in net Corporate operating earnings was primarily driven by lower pension expense and lower employee-related costs.

Cash Flows – Continuing Operations
First quarter net cash flows provided by operating activities of continuing operations were $121 million compared to $111 million last year, reflecting lower benefit plan contributions. First quarter net cash flows used in investing activities of continuing operations were $61 million compared to $70 million last year. First quarter net cash flows used in financing activities of continuing operations were $58 million compared to $19 million last year, reflecting higher payments on debt obligations.

Conference Call ­­­
A conference call to review the first quarter results is scheduled for 9:00 a.m. central time today. The call will be webcast live at www.supervaluinvestors.com (click on microphone icon). A replay of the call will be archived at www.supervaluinvestors.com. To access the website replay go to the “Investors” link and click on “Presentations and Webcasts.”

About SUPERVALU INC.
SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $18 billion. SUPERVALU serves customers across the United States through a network of 3,342 stores composed of 1,773 stores operated by wholesale customers serviced primarily by the Company’s food distribution business; 1,368 Save-A-Lot stores, of which 896 are operated by licensee owners; and 201 traditional retail grocery stores (store counts as of June 18, 2016). Headquartered in Minnesota, SUPERVALU has approximately 40,000 employees. For more information about SUPERVALU visit www.supervalu.com.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.

Except for the historical and factual information contained herein, the matters set forth in this news release, particularly those pertaining to SUPERVALU’s expectations, guidance, or future operating results, and other statements identified by words such as “estimates,” “expects,” “projects,” “plans,” “intends,” and similar expressions are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including competition, ability to execute operations and initiatives, ability to realize benefits from acquisitions and dispositions, impact of exploration of possible separation of Save-A-Lot, reliance on wholesale customers and licensees ability to grow or maintain identical store sales, ability to maintain or increase margins, substantial indebtedness, labor relations issues, escalating costs of providing employee benefits, relationships with Albertson’s LLC, New Albertson’s Inc., and Haggen, intrusions to and disruption of information technology systems, impact of economic conditions, commodity pricing, governmental regulation, food and drug safety issues, legal proceedings, pharmacy reimbursement and health care financing, intellectual property protection, severe weather, natural disasters and adverse climate changes, disruption to supply chain and distribution network, changes in military business, adequacy of insurance, volatility in fuel and energy costs, asset impairment charges, fluctuations in our common stock price and other risk factors relating to our business or industry as detailed from time to time in SUPERVALU’s reports filed with the SEC. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required, SUPERVALU undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Contact:
Steve Bloomquist
952-828-4144
steve.j.bloomquist@supervalu.com

Media Contact:
Jeff Swanson
952-903-1645
jeffrey.s.swanson@supervalu.com

Source: SUPERVALU INC.

SUPERVALU to hold its fiscal 2017 first quarter conference call on Wednesday July 27, 2016

MINNEAPOLIS, 2016-Jul-18 — /EPR Retail News/ — SUPERVALU INC. (NYSE: SVU) will hold its fiscal 2017 first quarter conference call on Wednesday July 27, 2016 at 9:00 a.m. Central time. The call will be webcast live online at www.supervaluinvestors.com (click on microphone icon).

A replay of the conference call will be archived on SUPERVALU’s website under “Investors, Presentations and Webcasts.”

About SUPERVALU INC.
SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $18 billion. SUPERVALU serves customers across the United States through a network of 3,588 stores composed of 1,796 independent stores serviced primarily by the Company’s food distribution business; 1,360 Save-A-Lot stores, of which 897 are operated by licensee owners; and 200 traditional retail grocery stores (store counts as of February 27, 2016). Headquartered in Minnesota,SUPERVALU has approximately 40,000 employees.

Investor Contact:
Steve Bloomquist, 952-828-4144
steve.j.bloomquist@supervalu.com

Media Contact:
Jeff Swanson, 952-903-1645
jeffrey.s.swanson@supervalu.com

Source: SUPERVALU INC.

SUPERVALU to acquire 22 Food Lion grocery stores that are being sold in connection with the merger between Ahold and Delhaize

MINNEAPOLIS, 2016-Jul-15 — /EPR Retail News/ — SUPERVALU INC. (NYSE:SVU) today announced it has entered into a definitive agreement to acquire 22 Food Lion grocery stores that are being sold in connection with the merger between Ahold and Delhaize. The 22 Food Lion stores are located in northern West Virginia, western Maryland, south central Pennsylvania and northwestern Virginia. The acquired stores will be converted to SUPERVALU’s Shop ‘N Save format and at least initially be operated by SUPERVALU. SUPERVALU is in discussions with certain of its wholesale customers and the Federal Trade Commission (FTC) on ways for its wholesale customers to have an interest in these stores going forward.

SUPERVALU supplies and supports nearly 100 independently-operated Shop ‘N Save stores located primarily in western Pennsylvania and West Virginia. These independently-operated stores are a key component of SUPERVALU’s wholesale business and the network of stores and owners is among the strongest in SUPERVALU’s wholesale business. The 22 acquired stores are expected to benefit from both the scale of the format and similar merchandising and marketing strategies. These stores are not part of SUPERVALU’s corporately-owned Shop ‘n Save retail banner comprised of 44 stores in the St. Louis, Missouri area.

“I’m pleased that SUPERVALU will acquire these stores, which should provide excellent opportunities for our wholesale customers, who were unable to buy them outright,” said SUPERVALU President and CEO Mark Gross. “The stores will operate under our Shop ‘N Save format, which we believe is a great format for us and our wholesale customers. This acquisition is another example of the work we’re doing to grow our business and to deliver creative solutions for our wholesale customers.”

The stores being acquired are conventional supermarkets that are approximately 35,000 square feet in size. As Shop ‘N Save stores, the plan will be to deliver a full-variety meat department, full-service delis and bakeries and an expanded produce department. Additionally, these 22 stores also will receive comprehensive marketing, advertising, and promotional support, including implementation of the Shop ‘N Save loyalty card program, and interactive website and mobile app. The 22 stores currently employ more than 1,200 full and part-time associates and, as part of the acquisition, SUPERVALU anticipates offering employment to substantially all interested employees.

The acquisition of the 22 stores is subject to customary closing conditions, including approval by the FTC, and is expected to be completed in a staggered closing process over the next 105 days.

A complete list of stores and locations follows below.

Food Lion Stores Being Acquired by SUPERVALU

Store Address City ST Zip
761 East Wilson Boulevard Hagerstown MD 21740
22401 Jefferson Boulevard Smithburg MD 21783
18717 North Pointe Drive Hagerstown MD 21742
17718 Virginia Avenue Hagerstown MD 21740
18360 College Road Hagerstown MD 21740
4170 Philadelphia Avenue Chambersburg PA 17202
875 Lincoln Way West Chambersburg PA 17202
500 North Antrim Way Greencastle PA 17225
11105 Buchanan Trail Waynesboro PA 17268
707 Fort Collier Road Winchester VA 22601
2600 Valley Avenue Winchester VA 22601
249 Sunnyside Plaza Circle Winchester VA 22603
609 K East Main Street Purcellville VA 20132
260 Remount Road Front Royal VA 22630
409 North McNeil Road Berryville VA 22611
190 Delco Plaza Winchester VA 22602
380 Fairfax Pike Stephens City VA 22655
159 Grocery Avenue Winchester VA 22602
147 Roaring Lion Drive Hedgesville WV 25427
1140 Winchester Avenue Martinsburg WV 25401
50 Coast Guard Drive Kearneysville WV 25430
1317 Old Courthouse Square Martinsburg WV 25401

About SUPERVALU INC.
SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $18 billion. SUPERVALU serves customers across the United States through a network of 3,588 stores composed of 1,796 independent stores serviced primarily by the Company’s food distribution business; 1,360 Save-A-Lot stores, of which 897 are operated by licensee owners; and 200 traditional retail grocery stores (store counts as of February 27, 2016). Headquartered in Minnesota, SUPERVALU has approximately 40,000 employees.

For more information about SUPERVALU visit www.supervalu.com.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.

Except for the historical and factual information contained herein, the matters set forth in this news release, particularly those pertaining to SUPERVALU’s expectations, guidance, or future operating results, and other statements identified by words such as “estimates,” “anticipates,” “expects,” “projects,” “plans,” “intends,” “will” and similar expressions are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including uncertainties as to the timing of the acquisition and satisfaction of the closing conditions, including approval by the FTC, SUPERVALU’s ability to integrate the Food Lion stores into the Shop ‘N Save format and ability to reach agreement on ways for its wholesale customers to have an interest in these new stores, and the resulting business impacts of these new stores. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required, SUPERVALU undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

For Investors:
Steve Bloomquist
952-828-4144
Steve.j.bloomquist@supervalu.com

For Media:
Jeff Swanson
952-903-1645
Jeffrey.s.swanson@supervalu.com

Source: SUPERVALU INC.

SUPERVALU: Save-A-Lot, Inc. files Amendment No. 1 to its Form 10 for possible spin-off into separate, publicly traded company

MINNEAPOLIS, 2016-Jun-13 — /EPR Retail News/ — SUPERVALU INC. (NYSE: SVU) today announced that Save-A-Lot, Inc., a wholly owned subsidiary of the Company, has filed Amendment No. 1 to its Form 10 Registration Statement (Form 10) with theU.S. Securities and Exchange Commission in connection with the possible spin-off of Save-A-Lot into a separate, publicly traded company. Among other changes, the amendment includes Save-A-Lot’s recent financial results and details the Company’s current expectations that immediately following a spin-off, SUPERVALU stockholders would directly own approximately 60 percent of the outstanding shares of common stock of Save-A-Lot and that SUPERVALU would retain approximately 40 percent of the outstanding shares of common stock of Save-A-Lot.

SUPERVALU announced in July 2015 that it was exploring a separation of its Save-A-Lot business, and that as part of that process it had begun preparations to allow for a possible spin-off of Save-A-Lot into a stand-alone public company. With the filing of Amendment No. 1 to the Form 10, SUPERVALU is continuing preparations to separate Save-A-Lot, although at this time there can be no assurance that a separation of Save-A-Lot will be completed or that any other change in the Company’s overall structure or business model will occur.

To review the Amendment No. 1 filing on the SEC’s web site, use this link.

About SUPERVALU INC.
SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $18 billion.SUPERVALU serves customers across the United States through a network of 3,588 stores composed of 1,796 independent stores serviced primarily by the Company’s food distribution business; 1,360 Save-A-Lot stores, of which 897 are operated by licensee owners; and 200 traditional retail grocery stores (store counts as of February 27, 2016). Headquartered in Minnesota,SUPERVALU has approximately 40,000 employees. For more information about SUPERVALU visit www.supervalu.com.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.

Except for the historical and factual information contained herein, the matters set forth in this news release, particularly those pertaining to SUPERVALU’s expectations, guidance, or future operating results, and other statements identified by words such as “estimates,” “anticipates,” “expects,” “projects,” “plans,” “intends” and similar expressions are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including uncertainties as to the terms, timing or structure of any separation transaction and whether one will be consummated at all, the impact of any separation transaction on the businesses of SUPERVALU and the Save-A-Lot business on a standalone basis if the separation were to be completed, whether the operational and strategic benefits of a separation can be achieved and whether the costs and expenses of the separation can be controlled within expectations. Other factors include competition, ability to execute operations and initiatives, ability to realize benefits from acquisitions and dispositions, reliance on wholesale customers and licensees ability to grow or maintain identical store sales, ability to maintain or increase margins, substantial indebtedness, labor relations issues, escalating costs of providing employee benefits, relationships with Albertson’s LLC, New Albertson’s, Inc. and Haggen, intrusions to and disruption of information technology systems, impact of economic conditions, commodity pricing, governmental regulation, food and drug safety issues, legal proceedings, pharmacy reimbursement and health care financing, intellectual property protection, severe weather, natural disasters and adverse climate changes, disruption to supply chain and distribution network, changes in military business, adequacy of insurance, volatility in fuel and energy costs, asset impairment charges, fluctuations in our common stock price and other risk factors relating to our business or industry as detailed from time to time inSUPERVALU’s reports filed with the SEC. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required, SUPERVALU undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Source: SUPERVALU INC.

SUPERVALU INC.
For Investors:
Steve Bloomquist, 952-828-4144
Steve.bloomquist@supervalu.com
or
For Media:
Jeff Swanson, 952-903-1645
Jeffrey.Swanson@supervalu.com

Former Family Dollar and Giant Eagle Executive Mary Winston joins SUPERVALU Board

EDEN PRAIRIE, Minn., 2016-Apr-29 — /EPR Retail News/ — SUPERVALU INC. (NYSE:SVU) today announced that experienced financial executive and corporate board member Mary Winston has been appointed to SUPERVALU’s Board of Directors effectiveApril 27, 2016.

Ms. Winston joins the Board having most recently served from 2012 through August 2015 as the Executive Vice President and Chief Financial Officer for Family Dollar Stores, Inc., a discount retailer with more than 8,300 stores and nearly $11 billion in revenues prior to its acquisition by Dollar Tree in July 2015. Before joining Family Dollar, from 2008 to 2012, Ms. Winston served as Senior Vice President and Chief Financial Officer for Giant Eagle, Inc., a regional grocery and fuel retailer. In addition to her corporate executive leadership experience, Ms. Winston also has over ten years of experience serving on public company boards and audit committees where she brings extensive financial management and leadership experience. Ms. Winston currently serves on the boards of directors for two public companies, Dover Corporation and Domtar Corporation, and from 2008 throughFebruary 2016 was a director for Plexus Corporation.

Commenting on Ms. Winston’s appointment, SUPERVALU’s Non-Executive Chairman Gerald Storch said, “I’m very pleased that Mary has accepted our offer to join the SUPERVALU Board of Directors. Her experience in senior level financial positions and on executive management teams, along with her many years of service on public company boards, makes her a highly-qualified addition who will help to lead our organization into the future.”

With the addition of Ms. Winston, SUPERVALU’s Board now has twelve members.

About SUPERVALU INC.
SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $18 billion.SUPERVALU serves customers across the United States through a network of 3,588 stores composed of 1,796 independent stores serviced primarily by the Company’s food distribution business; 1,360 Save-A-Lot stores, of which 897 are operated by licensee owners; and 200 traditional retail grocery stores (store counts as of February 27, 2016). Headquartered in Minnesota,SUPERVALU has approximately 40,000 employees. For more information about SUPERVALU visit www.supervalu.com.

Source: SUPERVALU INC.

SUPERVALU INC.
For Investors:
Steve Bloomquist, PH 952-828-4144
Steve.bloomquist@supervalu.com
or
For Media:
Jeff Swanson, PH 952-903-1645
Jeffrey.swanson@supervalu.com

James Weidenheimer named to SUPERVALU’s newly-created position of Executive VP, Corporate Development and Chief Innovation Officer

  • Company announces additional executive role changes and renaming of Independent Business segment to Wholesale

MINNEAPOLIS, 2016-Apr-20 — /EPR Retail News/ — SUPERVALU INC. (NYSE:SVU) today announced that veteran wholesale executive James Weidenheimer, 57, has been named to the newly-created position of Executive Vice President, Corporate Development and Chief Innovation Officer, reporting to SUPERVALU President and Chief Executive Officer Mark Gross. Weidenheimer joins the Company after having spent the last 16 years in senior leadership positions with C&S Wholesale Grocers. He is expected to start in his new role by April 25, 2016.

In this position, Weidenheimer will work closely with SUPERVALU’s Wholesale and Retail teams to develop and execute on market opportunities, including new business development, cross-channel merchandising and promotions, and integration of logistical/delivery solutions for key SUPERVALU customers.

“I’m thrilled that Jim will be joining SUPERVALU and serving on our executive leadership team,” said Gross. “Jim and I have worked together in different capacities over the past 20 years. Jim has a wealth of industry knowledge and extensive expertise in procurement, distribution and logistics and is able to draw on all this experience when considering how to best structure new offerings for a customer. I’m confident that he’ll bring instant credibility to this role and innovation to our business. We believe there are significant opportunities to grow our business with existing customers and also to add new ones and Jim will be an excellent addition to help us achieve these goals.”

Weidenheimer’s background includes serving as Senior Vice President of Corporate Development for C&S Wholesale Grocers from 2008 to January 2016 when he retired from C&S. Prior to C&S, Weidenheimer served as Vice President and Chief Financial Officer for the wholesale division of Richfood Holdings. He holds a bachelor’s degree from the University of Kansas.

SUPERVALU today also announced additional changes to Gross’s executive leadership team. Bruce Besanko, the Company’s Executive Vice President and Chief Operating Officer, has added the responsibilities of Chief Financial Officer, a position he held from August 2013 to October 2015. In his role as both Chief Operating Officer and Chief Financial Officer, Besanko will continue to oversee SUPERVALU’s five regional Retail banners, the Company’s merchandising, marketing and pharmacy functions, and the Finance function, as well as add oversight of SUPERVALU’s Human Resources function. Additionally, the Company announced that Susan Grafton will serve in the position of Senior Vice President, Finance, and Chief Accounting Officer, reporting to Besanko. Grafton will oversee accounting and certain finance functions. These changes to Besanko’s and Grafton’s roles are effective immediately.

The Company also announced the renaming of its Independent Business segment to Wholesale, as wholesale serves as this segment’s primary function, which is to distribute consumable products to retail stores for final sale. Mike Stigers, Executive Vice President, Wholesale, will continue to lead this renamed segment and will report directly to Gross.

“I’m very thankful to have a smart, highly-driven team of executives who have helped me quickly assimilate into my role with SUPERVALU,” said Gross. “I value their contributions and I’m pleased they will be a part of helping me drive the growth of this Company going forward.”

About SUPERVALU INC.
SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $18 billion.SUPERVALU serves customers across the United States through a network of 3,407 stores composed of 1,871 independent stores serviced primarily by the Company’s food distribution business; 1,336 Save-A-Lot stores, of which 883 are operated by licensee owners; and 200 traditional retail grocery stores (store counts as of December 5, 2015). Headquartered in Minnesota,SUPERVALU has approximately 40,000 employees. For more information about SUPERVALU visit www.supervalu.com.

Source: SUPERVALU INC.

SUPERVALU INC.
Investor Contact:
Steve Bloomquist, 952-828-4144
steve.j.bloomquist@supervalu.com

Media Contact:
Jeff Swanson, 952-903-1645
jeffrey.s.swanson@supervalu.com

 

SUPERVALU INC. to hold its fiscal 2016 fourth quarter conference call on Tuesday April 26, 2016

MINNEAPOLIS, 2016-Apr-18 — /EPR Retail News/ — SUPERVALU INC. (NYSE:SVU) will hold its fiscal 2016 fourth quarter conference call on Tuesday April 26, 2016 at 9:00 a.m. Central time. The call will be webcast live online at www.supervaluinvestors.com (click on microphone icon).

A replay of the conference call will be archived on SUPERVALU’s website under “Investors, Presentations and Webcasts.”

About SUPERVALU INC.
SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $18 billion.SUPERVALU serves customers across the United States through a network of 3,407 stores composed of 1,871 independent stores serviced primarily by the Company’s food distribution business; 1,336 Save-A-Lot stores, of which 883 are operated by licensee owners; and 200 traditional retail grocery stores (store counts as of December 5, 2015). Headquartered in Minnesota, SUPERVALUhas approximately 40,000 employees. For more information about SUPERVALU visit www.supervalu.com.

Source: SUPERVALU INC.

SUPERVALU INC.
Investor Contact
Steve Bloomquist, 952-828-4144
steve.j.bloomquist@supervalu.com

Media Contact
Jeff Swanson, 952-903-1645
jeffrey.s.swanson@supervalu.com

SUPERVALU reports $4.11 billion net sales in Q3 fiscal 2016

  • Consolidated operating earnings of $101 million; Adjusted EBITDA of $182 million for Q3 fiscal 2016
  • Net earnings per share from continuing operations of $0.13; adjusted earnings per share of $0.16
  • Redeemed remaining $278 million of 8.00% Senior Notes due May 2016 on January 6, 2016

MINNEAPOLIS, 2016-01-13 — /EPR Retail News/ — SUPERVALU INC. (NYSE: SVU) today reported third quarter fiscal 2016 net sales of $4.11 billion and net earnings from continuing operations of $35 million, or $0.13 per diluted share, which included $11 million in after-tax charges and costs related to asset impairments, the potential separation of Save-A-Lot, and employee severance. When adjusted for these items, third quarter fiscal 2016 net earnings from continuing operations were $46 million, or$0.16 per diluted share.

Net earnings from continuing operations for last year’s third quarter were $12 million, or $0.04 per diluted share, which included a$36 million after-tax pension settlement charge and $1 million in after-tax debt refinancing and net information technology intrusion costs. When adjusted for these items, third quarter fiscal 2015 net earnings from continuing operations were $49 million, or $0.18 per diluted share. [See tables 1-5 for a reconciliation of GAAP and non-GAAP (adjusted) results appearing in this release.]

“Although third quarter adjusted EBITDA was in-line with our operating plan, we continue to operate in a challenging environment,” said President and CEO Sam Duncan. “Improving sales is a primary focus as we look to complete the fiscal year.”

Third Quarter Results – Continuing Operations

Third quarter net sales were $4.11 billion compared to $4.23 billion last year, a decrease of $111 million or 2.6 percent. Save-A-Lot network identical store sales were negative 3.4 percent. Identical store sales for corporate stores within the Save-A-Lot network were negative 0.4 percent. Retail Food identical store sales were negative 2.6 percent. Total net sales within the Independent Business segment decreased 3.5 percent. Fees earned under transition services agreements (“TSAs”) in the third quarter were $46 million compared to $43 million last year.

Gross profit for the third quarter was $601 million, or 14.6 percent of net sales. Last year’s third quarter gross profit was $596 million, or 14.1 percent of net sales. The increase in gross profit rate compared to last year was primarily driven by higher base margins across all three segments, lower logistics costs, and higher TSA fees, partially offset by higher employee and occupancy costs.

Selling and administrative expenses in the third quarter were $494 million and included charges and costs of $10 million for the potential separation of Save-A-Lot, store closure impairments and employee severance. When adjusted for these items, selling and administrative costs were $484 million, or 11.7 percent of net sales. Selling and administrative expenses in last year’s third quarter were $540 million and included a $63 million pension settlement charge and $1 million in information technology intrusion costs, net of insurance recoverable. When adjusted for these items, last year’s selling and administrative expenses were $476 million, or 11.3 percent of net sales.

Net interest expense for the third quarter was $45 million. Last year’s third quarter interest expense was $46 million and included$1 million in debt refinancing costs. When adjusted for this item, last year’s third quarter interest expense was $45 million.

Income tax expense was $22 million, or 37.6 percent of pre-tax earnings, for the third quarter, compared to an income tax benefit of $1 million, or 8.9 percent of pre-tax earnings in last year’s third quarter. The increase in the effective tax rate is primarily due to the pension settlement charge included in the prior year.

Independent Business

Third quarter Independent Business net sales were $1.90 billion, compared to $1.97 billion last year, a decrease of 3.5 percent. The decrease is primarily due to lower sales to existing customers and lost stores, partially offset by increased sales to new customers and new stores operated by existing customers.

Independent Business operating earnings in the third quarter were $54 million, or 2.8 percent of net sales, and included a $6 million intangible asset impairment charge. When adjusted for this item, Independent Business operating earnings were $60 million or 3.2 percent of net sales. Last year’s Independent Business operating earnings in the third quarter were $60 million, or 3.1 percent of net sales.

Save-A-Lot

Third quarter Save-A-Lot net sales were $1.07 billion, compared to $1.09 billion last year, a decrease of 1.5 percent. The sales decrease reflects identical store sales across the Save-A-Lot network of negative 3.4 percent and the impact of closed stores.

Save-A-Lot operating earnings in the third quarter were $32 million, or 2.9 percent of net sales, and included $2 million of store closure impairment charges. When adjusted for this item, Save-A-Lot’s operating earnings were $34 million, or 3.1 percent of sales. Last year’s Save-A-Lot operating earnings in the third quarter were $34 million, or 3.1 percent of net sales.

Retail Food

Third quarter Retail Food net sales were $1.10 billion, compared to $1.13 billion last year, a decrease of 2.5 percent. The sales decrease reflects negative identical store sales of 2.6 percent.

Retail Food operating earnings in the third quarter were $21 million, or 2.0 percent of net sales, and included $1 million of store closure impairment charges. When adjusted for this item, Retail Food operating earnings were $22 million, or 2.1 percent of sales. Last year’s Retail Food operating earnings were $28 million, or 2.5 percent of net sales. The decrease in Retail Food operating earnings was driven by higher employee-related costs.

Corporate

Third quarter fees earned under the TSAs were $46 million compared to $43 million last year.

Net Corporate operating loss in the third quarter was $6 million and included $7 million of costs related to the potential separation of Save-A-Lot and employee severance. When adjusted for these items, net Corporate operating earnings were $1 million. Last year’s third quarter net Corporate operating loss was $66 million and included $64 million in charges and costs for a pension settlement charge and information technology intrusion costs, net of insurance receivable. When adjusted for these items, last year’s net Corporate operating loss was $2 million. The improvement in net Corporate operating earnings was primarily driven by lower employee-related costs and higher fees earned under the TSAs.

Cash Flows – Continuing Operations

Year-to-date fiscal 2016 net cash flows provided by operating activities of continuing operations were $251 million compared to$104 million last year, reflecting lower levels of investment in working capital and lower benefit plan contributions. Year-to-date net cash flows used in investing activities of continuing operations were $198 million compared to $209 million last year. Year-to-date net cash flows used in financing activities of continuing operations were $34 million compared to net cash flows provided by financing activities of $438 million last year, which included proceeds from a bond issuance.

Conference Call ­­­
A conference call to review the third quarter results is scheduled for 9:00 a.m. central time today. The call will be webcast live at www.supervaluinvestors.com (click on microphone icon). A replay of the call will be archived at www.supervaluinvestors.com. To access the website replay go to the “Investors” link and click on “Presentations and Webcasts.”

About SUPERVALU INC.
SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $18 billion.SUPERVALU serves customers across the United States through a network of 3,407 stores composed of 1,871 independent stores serviced primarily by the Company’s food distribution business; 1,336 Save-A-Lot stores, of which 883 are operated by licensee owners; and 200 traditional retail grocery stores (store counts as of December 5, 2015). Headquartered in Minnesota,SUPERVALU has approximately 40,000 employees. For more information about SUPERVALU visit www.supervalu.com.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.

Except for the historical and factual information contained herein, the matters set forth in this news release, particularly those pertaining to SUPERVALU’s expectations, guidance, or future operating results, and other statements identified by words such as “estimates,” “expects,” “projects,” “plans,” “intends,” and similar expressions are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including competition, ability to execute initiatives, substantial indebtedness, labor relations issues, escalating costs of providing employee benefits, relationships with Albertson’s LLC, New Albertson’s Inc., and Haggen, intrusions to and disruption of information technology systems, impact of economic conditions, governmental regulation, food and drug safety issues, legal proceedings, severe weather, natural disasters and adverse climate changes, disruption to supply chain and distribution network, changes in military business, adequacy of insurance, volatility in fuel and energy costs, asset impairment charges, fluctuations in our common stock price and other risk factors relating to our business or industry as detailed from time to time in SUPERVALU’s reports filed with the SEC. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required,SUPERVALU undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Source: SUPERVALU INC.

SUPERVALU INC.
Investor Contact
Steve Bloomquist, 952-828-4144
steve.j.bloomquist@supervalu.com
or
Media Contact
Jeff Swanson, 952-903-1645
jeffrey.s.swanson@supervalu.com

SUPERVALU’s EVP Janel Haugarth to retire on December 26, 2015

SUPERVALU’s Cub Foods President Mike Stigers named new Executive Vice President, Independent Business and Supply Chain to succeed Haugarth

MINNEAPOLIS, 2015-11-18 — /EPR Retail News/ — SUPERVALU INC. (NYSE: SVU) today announced that Janel Haugarth, Executive Vice President and President, Independent Business and Supply Chain Services, has informed the Company of her plans to retire on December 26, 2015. Haugarth has spent nearly 40 years with the Company and served in a variety of leadership positions and roles of increasing responsibility, including having been an executive vice president with the Company since 2006.

Under Haugarth’s leadership and direction, SUPERVALU consolidated and realigned its wholesale operations, introduced a National Sales Expo attracting more than 4,000 attendees the past two years, launched new professional services programs to support the expanding needs of independent retailers, and led the procurement and growth of new business for the Company’s Independent Business segment.

“Janel has been a tremendous advocate for this Company throughout her SUPERVALU career,” said SUPERVALU CEO and President Sam Duncan. “It has been an absolute pleasure to have worked with Janel for the past two and one-half years. Her knowledge of the industry and her passion for helping our independent retailers succeed is second to none. I’m grateful for her many years of leadership to this Company and wish her all the best in her retirement.”

“I feel very fortunate to have spent my career working for SUPERVALU and so grateful to have worked with such amazing employees, suppliers and customers for nearly 40 years,” said Haugarth. “It will be hard to leave this great company and all these great people, but I’m looking forward to the next phase of my life and am confident that SUPERVALU is well-positioned going forward.”

Mike Stigers, current President of Cub Foods, has been appointed Executive Vice President, Independent Business and Supply Chain to succeed Haugarth. Stigers, who started his grocery career in 1974, has more than 40 years of experience in the grocery industry. Stigers joined SUPERVALU in 2011, and has served in roles as President of Shaw’s, one of SUPERVALU’s formerly-owned retail banners, and as President of Northern Region, formerly one of the three sales regions within SUPERVALU’s Independent Business segment. Stigers will assume his new responsibilities on December 27, and will report to Bruce Besanko, SUPERVALU’s Executive Vice President, Chief Operating Officer.

“Mike is a terrific and well respected leader with deep knowledge of the grocery industry and strong relationships across our entire retail and wholesale business,” said Duncan. “Under Mike’s direction, I am confident our wholesale operations and our Independent Business customers will be in great hands.”

About SUPERVALU INC.
SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $18 billion.SUPERVALU serves customers across the United States through a network of 3,395 stores composed of 1,854 independent stores serviced primarily by the Company’s food distribution business; 1,342 Save-A-Lot stores, of which 901 are operated by licensee owners; and 199 traditional retail grocery stores (store counts as of September 12, 2015). Headquartered in Minnesota,SUPERVALU has approximately 40,000 employees. For more information about SUPERVALU visit www.supervalu.com.

Source: SUPERVALU INC.

SUPERVALU INC.
INVESTOR CONTACT:
Steve Bloomquist, 952-828-4144
steve.j.bloomquist@supervalu.com
or
MEDIA CONTACT:
Jeff Swanson, 952-903-1645
jeffrey.s.swanson@supervalu.com

SUPERVALU reports 2Q fiscal 2016 net sales of $4.06 billion

  • Consolidated operating earnings of $94 million for Q2 fiscal 2016
  • Adjusted EBITDA of $166 million for Q2 fiscal 2016
  • Save-A-Lot sales, operating earnings and Adjusted EBITDA increase over last year’s second quarter
    • Ninth consecutive quarter of positive Save-A-Lot corporate stores ID sales

MINNEAPOLIS, 2015-10-22 — /EPR Retail News/ — SUPERVALU INC. (NYSE:SVU) today reported second quarter fiscal 2016 net sales of $4.06 billion and net earnings from continuing operations of $31 million, or $0.11 per diluted share, which included $6 million in after-tax costs related to the potential separation of Save-A-Lot and severance costs. When adjusted for these items, second quarter fiscal 2016 net earnings from continuing operations were $37 million, or $0.13 per diluted share.

Net earnings from continuing operations for last year’s second quarter were $31 million, or $0.11 per diluted share, which included $1 million in after-tax information technology intrusion costs. When adjusted for this item, second quarter fiscal 2015 net earnings from continuing operations were $32 million, or $0.11 per diluted share. [See tables 1-5 for a reconciliation of GAAP and non-GAAP (adjusted) results appearing in this release.]

“I’m pleased that we increased adjusted EBITDA in the second quarter compared to last year in spite of several operating headwinds,” said President and CEO Sam Duncan. “Our focus remains on driving sales across all three segments and finishing the year strong.”

Second Quarter Results – Continuing Operations

Second quarter net sales were $4.06 billion compared to $4.04 billion last year, an increase of $21 million or 0.5 percent. Save-A-Lot network identical store sales were negative 1.6 percent. Identical store sales for corporate stores within the Save-A-Lot network were positive 0.9 percent. Retail Food segment identical store sales were negative 3.3 percent. Total net sales within the Independent Business segment decreased 0.2 percent. Fees earned under transition services agreements (“TSAs”) in the second quarter were $48 million compared to $44 million last year.

Gross profit for the second quarter was $583 million, or 14.4 percent of net sales. Last year’s second quarter gross profit was $574 million, or 14.2 percent of net sales. The increase in gross profit rate compared to last year was primarily driven by higher base margins across all three segments, lower logistics costs, and higher TSA fees partially offset by higher levels of shrink.

Selling and administrative expenses in the second quarter were $489 million and included $4 million of costs related to the potential separation of Save-A-Lot and $4 million of severance costs. When adjusted for these items, selling and administrative costs were $481 million, or 11.9 percent of net sales. Selling and administrative expenses in last year’s second quarter were $480 million and included $1 million in pre-tax information technology intrusion costs. When adjusted for this item, last year’s selling and administrative expenses were $479 million, or 11.9 percent of net sales.

Net interest expense for the second quarter was $44 million compared to $46 million in last year’s second quarter.

SUPERVALU’s income tax expense was $19 million, or 40.0 percent of pre-tax earnings, for the second quarter, compared to $18 million, or 36.9 percent of pre-tax earnings in last year’s second quarter. The change in the effective tax rate is primarily due to an unfavorable mix of income in state taxing jurisdictions.

Independent Business

Second quarter Independent Business net sales were $1.83 billion, compared to $1.84 billion last year, a decrease of 0.2 percent. The decrease is primarily due to lower sales to existing customers and lost stores, partially offset by sales from new stores with existing customers and new customers.

Independent Business operating earnings in the second quarter were $49 million, or 2.7 percent of net sales. Last year’s Independent Business operating earnings in the second quarter were $54 million, or 2.9 percent of net sales. The decrease in Independent Business operating earnings was driven by higher employee costs related to new business activity.

Save-A-Lot

Second quarter Save-A-Lot net sales were $1.09 billion, compared to $1.06 billion last year, an increase of 3.2 percent. The sales increase reflects the impact of new store openings. Identical store sales within the Save-A-Lot network were negative 1.6 percent.

Save-A-Lot operating earnings in the second quarter were $32 million, or 3.0 percent of net sales. Last year’s Save-A-Lot operating earnings in the second quarter were $26 million, or 2.5 percent of net sales. The increase in Save-A-Lot operating earnings as a percent of sales was primarily driven by higher base margins and lower logistics costs.

Retail Food

Second quarter Retail Food net sales were $1.09 billion, compared to $1.11 billion last year, a decrease of 1.2 percent. The sales decrease reflects negative identical store sales of 3.3 percent and closed stores.

Retail Food operating earnings in the second quarter were $10 million, or 0.9 percent of net sales. Last year’s Retail Foodoperating earnings were $20 million, or 1.8 percent of net sales. The decrease in Retail Food operating earnings was driven by higher shrink expense and employee related costs.

Corporate

Second quarter fees earned under the TSAs were $48 million, compared to $44 million last year. The increase was primarily driven by fees earned under the Company’s transition service agreement with Haggen.

Net Corporate operating earnings in the second quarter were $3 million and included $4 million of costs related to the potential separation of Save-A-Lot and $4 million of severance costs. When adjusted for these items, net Corporate operating earnings were$11 million. Last year’s second quarter net Corporate operating loss was $6 million and included $1 million in information technology intrusion costs, net of insurance receivable. When adjusted for this item, last year’s net Corporate operating loss was $5 million. The improvement in net Corporate operating earnings was primarily driven by lower employee related costs and higher fees earned under the TSAs.

Cash Flows – Continuing Operations

Year-to-date fiscal 2016 net cash flows provided by operating activities of continuing operations were $276 million compared to$158 million in the prior year, reflecting lower levels of investment in working capital. Year-to-date net cash flows used in investing activities of continuing operations were $119 million compared to $121 million in the prior year. Year-to-date net cash flows used in financing activities of continuing operations were $25 million compared to $34 million in the prior year.

Conference Call

A conference call to review the second quarter results is scheduled for 9:00 a.m. central time today. The call will be webcast live at www.supervaluinvestors.com (click on microphone icon). A replay of the call will be archived at www.supervaluinvestors.com. To access the website replay go to the “Investors” link and click on “Presentations and Webcasts.”

About SUPERVALU INC.

SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $18 billion.SUPERVALU serves customers across the United States through a network of 3,395 stores composed of 1,854 independent stores serviced primarily by the Company’s food distribution business; 1,342 Save-A-Lot stores, of which 901 are operated by licensee owners; and 199 traditional retail grocery stores (store counts as of September 12, 2015). Headquartered in Minnesota,SUPERVALU has approximately 40,000 employees. For more information about SUPERVALU visit www.supervalu.com.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.

Except for the historical and factual information contained herein, the matters set forth in this news release, particularly those pertaining to SUPERVALU’s expectations, guidance, or future operating results, and other statements identified by words such as “estimates,” “expects,” “projects,” “plans,” “intends,” and similar expressions are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including competition, ability to execute initiatives, substantial indebtedness, labor relations issues, escalating costs of providing employee benefits, relationships with Albertson’s LLC, New Albertson’s Inc., and Haggen, intrusions to and disruption of information technology systems, impact of economic conditions, governmental regulation, food and drug safety issues, legal proceedings, severe weather, natural disasters and adverse climate changes, disruption to supply chain and distribution network, changes in military business, adequacy of insurance, volatility in fuel and energy costs, asset impairment charges, fluctuations in our common stock price and other risk factors relating to our business or industry as detailed from time to time in SUPERVALU’s reports filed with the SEC. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required, SUPERVALU undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Source: SUPERVALU INC.

SUPERVALU INC.
Investor Contact
Steve Bloomquist, 952-828-4144
steve.j.bloomquist@supervalu.com
or
Media Contact
Jeff Swanson, 952-903-1645
jeffrey.s.swanson@supervalu.com

SUPERVALU to hold its fiscal 2016 Q2 conference call on October 21, 2015

MINNEAPOLIS, 2015-10-14 — /EPR Retail News/ — SUPERVALU INC. (NYSE:SVU) will hold its fiscal 2016 second quarter conference call on Wednesday October 21, 2015 at 9:00 a.m. Central time. The call will be webcast live online at www.supervaluinvestors.com (click on microphone icon).

A replay of the conference call will be archived on SUPERVALU’s website under “Investors, Presentations and Webcasts.”

About SUPERVALU INC.
SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $18 billion.SUPERVALU serves customers across the United States through a network of 3,597 stores composed of 1,857 primary stores serviced by the Company’s food distribution business; 1,335 Save-A-Lot stores, of which 902 are operated by licensee owners; and 197 traditional retail grocery stores (store counts as of June 20, 2015). Headquartered in Minnesota, SUPERVALU has approximately 40,000 employees. For more information about SUPERVALU visit www.supervalu.com.

Source: SUPERVALU INC.

SUPERVALU INC.
Investor Contact:
Steve Bloomquist, 952-828-4144
steve.j.bloomquist@supervalu.com
or
Media Contact:
Jeff Swanson, 952-903-1645
jeffrey.s.swanson@supervalu.com