ST. LOUIS (FNS) -- Supervalu, Minneapolis, told shareholders here at Save-A-Lot headquarters during the annual meeting that the limited assortment stores will propel the distributor further into food retailing this year.
The push will result in 150 to 170 new Save-A-Lots across the country -- with the total likely "on the top end of that," said Jeff Noddle, president, chief executive officer and chairman.
Further, the firm's fiscal 2003 budget includes funds for 10 to 15 new price-impact superstores.
"As of the fourth quarter of fiscal 2002 -- and for the first time in Supervalu's history -- retail revenues now account for one-half of our revenue mix," Noddle said. After the meeting, he told SN the retail ratios of company sales might approach 55% this year.
"Our goal is to accelerate the growth of Save-A-Lot into a true coast-to-coast, border-to-border, 'extreme-value' retailer," Noodle said.
After the meeting, he told SN that two new prototype 18,000- square- foot Save-A-Lot stores containing food and a limited line of general merchandise probably would be opened at undisclosed locations next fall.
During the meeting, a delegation from Supervalu's Bigg's operation in Cincinnati protested the firm's union policies. Wearing T-shirts emblazoned with the message, "I support the rights of Bigg's workers to organize," several representatives of the group complained that company officials in Cincinnati declined to meet with them.
Noddle replied: "Cincinnati is very important to us. We will respect the right of our people to make a choice. If they want a union, we will honor that. But we will not impose a union on them."
Separately, last week Supervalu said it would take over distribution of grocery, frozen, dairy, deli, bakery, meat and seafood products of Clemens Family Markets, a 19-unit chain based in Kulpsville, Pa. The terms were not disclosed. Fleming Cos., Dallas, will continue to distribute general merchandise, health and beauty care, specialty foods and produce to Clemens, according to a Supervalu spokeswoman.
