Supervalu cuts sales outlook - The Packer

Supervalu cuts sales outlook

07/27/2010 12:47:44 PM
Bruce Blythe

Supervalu hasn’t said how many fresh produce offerings would be reduced, if at all.

Food retailers probably will remain in a “hotly competitive” environment,” Herkert said.

“It remains extraordinarily competitive out there, and we expect that to continue,” Herkert said during the call.

Local promotions

Supervalu has made recent efforts to boost store traffic, including a “Win with Fresh Produce” promotion aimed at touting locally grown fruits and vegetables.

The promotion includes posting “just arrived” signs and labels on its freshest items and highlighting “locally harvested” produce from nearby growers, Herkert said at the company’s annual shareholders’ meeting in June. Company executives didn’t provide further details on the promotion July 27.

Also, Supervalu cut its fiscal 2011 net sales forecast by $1 billion, to $38 billion, and reduced its 2011 earnings forecast to $1.61 to $1.81 per share from a previous estimate of $1.65 to $1.85.

The decrease reflects higher than expected expenses to exit markets in Cincinnati and Connecticut and the resolution of a strike earlier this year at the company’s Shaw’s operation in New England, Supervalu said.

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