abhishreshthaa
Abhijeet S
SuperValu Inc. (NYSE: SVU) is a United States grocery retailer and distributor. The corporation, headquartered in Eden Prairie, Minnesota, has been in business for over a century. It is the third-largest food retailing company in the United States and ranks #51 on the Fortune 100 list.
On June 2, 2006, Boise, Idaho-based Albertsons, Inc. and 1,124 of its stores were sold to SuperValu. The sale was approved by the shareholders of both SuperValu and Albertsons on May 30, 2006.
Supermarket News ranked SuperValu #1 in the 2008 "Top Wholesalers for 2008".
Strengths
* Wide portfolio of store brands & regional banners
* National presence & supply chain capabilities
* Knowledge of distribution and logistics from wholesale business
* Local market familiarity (Albertsons in West Coast, Jewel in Chicago, Shaw's in New England)
* Experience operating a decentralized structure
* Willingness to tolerate multiple solutions and approaches
Weaknesses
* Store operations labor expertise in short supply
* Integration of retail systems
* Divisional alignment
* Marketing expertise underdeveloped
* Lacks shopper data for local insights or targeted marketing programs
Opportunities
* Leverage acquisition of Albertsons
* Development of national banners
* Focus on higher-margin retail business & other departments (i.e., organics)
* Efficiencies from centralizing operations
* National supply chain
* Leverage loyalty card data for shopper insights
Threats
* Highly leveraged
* Wal-Mart Supercenter competition in key markets
* Too dependent on local management knowledge - no systems in place
* Risks losing customers from wholesale business
* Standardizing its stores while it centralizes operations
On June 2, 2006, Boise, Idaho-based Albertsons, Inc. and 1,124 of its stores were sold to SuperValu. The sale was approved by the shareholders of both SuperValu and Albertsons on May 30, 2006.
Supermarket News ranked SuperValu #1 in the 2008 "Top Wholesalers for 2008".
Strengths
* Wide portfolio of store brands & regional banners
* National presence & supply chain capabilities
* Knowledge of distribution and logistics from wholesale business
* Local market familiarity (Albertsons in West Coast, Jewel in Chicago, Shaw's in New England)
* Experience operating a decentralized structure
* Willingness to tolerate multiple solutions and approaches
Weaknesses
* Store operations labor expertise in short supply
* Integration of retail systems
* Divisional alignment
* Marketing expertise underdeveloped
* Lacks shopper data for local insights or targeted marketing programs
Opportunities
* Leverage acquisition of Albertsons
* Development of national banners
* Focus on higher-margin retail business & other departments (i.e., organics)
* Efficiencies from centralizing operations
* National supply chain
* Leverage loyalty card data for shopper insights
Threats
* Highly leveraged
* Wal-Mart Supercenter competition in key markets
* Too dependent on local management knowledge - no systems in place
* Risks losing customers from wholesale business
* Standardizing its stores while it centralizes operations