Retail and wholesale food giant Supervalu will sell eight of its distribution centers and wants to sell its Shop ‘n Save stores.
In its fourth quarter and fiscal year-end financial report April 24, Minneapolis-based Supervalu announced it had inked a deal to sell the distribution centers for $483 million. The company will lease back the facilities and continue to operate in them.
Supervalu also announced it plans to sell its St. Louis-based Shop ‘n Save and its Shop ‘n Save East, which has stores in West Virginia, Maryland, Pennsylvania and Virginia.
The moves follow Supervalu’s announcement earlier this year that it was selling its Farm Fresh banner stores.
“Already in the first two months of fiscal 2019, we’ve capitalized on our business momentum by taking several decisive, strategic actions that further our transformation,” says Mark Gross, Supervalu’s president and CEO. “With a growing wholesale business and more stable group of retail stores, we believe Supervalu is well positioned for success. While we still have more work to do, we remain optimistic about our ability to grow our core wholesale business and create long-term shareholder value.”
In Fiscal 2018, Supervalu’s consolidated net sales increased 30 percent. Its wholesale net sales increased 43 percent.