SUPERVALU SHOULD SELL DISTRIBUTION: ANALYST
MINNEAPOLIS — Supervalu's beleaguered stock regained some value last week after a Bank of America analyst lifted a “sell” rating on the stock and suggested the retailer could raise investment capital by selling its distribution business. Scott Mushkin, a Bank of America analyst, in a research note said pricing issues at Shaw's and store conditions on the West Coast would continue to pressure Supervalu, but suggested Supervalu's management should consider selling its distribution business and using the proceeds — which Mushkin estimated to be worth $10 a share, or more than $2 billion — to invest in remodels and lower prices. Supervalu stock lost more than 20% of its value in the weeks following a disappointing 2008 outlook.
A&P COMPLETES STORE SALES; REOPENINGS SET
MONTVALE, N.J. — A&P here said last week that it has completed its sale of five stores in Staten Island, N.Y., and one on Long Island to King Kullen and Stop & Shop, respectively. The stores were sold to comply with federal antitrust authorities overseeing A&P's recently completed merger with Pathmark. King Kullen, Bethpage, N.Y., is expected to begin reopening the former Pathmark and Waldbaum's stores in Staten Island under the King Kullen banner this week, reports said. Stop & Shop reopened a Waldbaum's location in Shirley, N.Y., late last week.
TESCO ‘VERY ENCOURAGED’ BY FRESH & EASY
CHESHUNT, England — Tesco here said last week that early customer response to its first Fresh & Easy stores in the U.S. “has been very encouraging.” The company made the remark in reporting a 12.8% gain in total company sales for the six-week period that ended Jan. 5. It did not break out sales for the 28 Fresh & Easy stores it had opened by that time, located in Southern California, Las Vegas and Phoenix. Sales in the company's core U.K. market were up 8%, including same-store sales gains of 5.1%. Same-store sales excluding fuel were up 3.1% in the U.K. International sales grew by 26.9%, including 30% growth in Central Europe and growth of more than 80% in Turkey and 60% in Malaysia, two of Tesco's newest countries.
CROSBY'S MARKETS SWITCHES TO AG NEW ENGLAND
MANCHESTER, N.H. — Associated Grocers of New England here said last week it has been selected as the primary supplier by Crosby's Markets, based in Salem, Mass., for all six of Crosby's supermarkets in Massachusetts. AG New England had previously been supplying only Crosby's Hamilton, Mass., store. The additional Crosby's Marketplace stores include locations in Marblehead, Manchester by the Sea, Georgetown, Concord and Salem. C&S Wholesale Grocers, Keene, N.H., had previously been the primary supplier to Crosby's, according to reports.
TARGET'S ARCHER FARMS CUTS TRANS FAT: REPORTS
MINNEAPOLIS — Target Corp. here said it will eliminate trans fat from its Archer Farms private-label grocery line, according to reports. The company said Archer Farms, which includes more than 2,000 items, will be the first national brand to eliminate trans fat from its entire portfolio. Target declined to comment.
KROGER SAID TO BRING MARKETPLACE TO TEXAS
CINCINNATI — Kroger Co. here is looking to bring its Marketplace superstores to Texas, reports said last week. The retailer was eyeing a site in Frisco, Texas, to debut the stores, which sell general merchandise and food in boxes of 100,000 square feet and larger, according to the Dallas Morning News. Kroger operates Marketplace stores in several other markets. In Texas, the stores would compete with Wal-Mart, Target and H-E-B Plus.
