MINNEAPOLIS -- As part of its fiscal 1995 capital-expenditure program, Supervalu here said it expects to spend about $150 million to support its independent-retailer customers.
e capital budget totaled $450 million in fiscal 1994, which ends today.
More than one-half of the 1995 capital budget, or $283 million, is earmarked for improvements on the food-distribution side of Supervalu's operations. This includes the $150 million targeted to support store development and financing for the company's 4,350 independent retailers.
The balance of the planned spending in food distribution is allocated for fixed-asset and working-capital expenditures, including several modest perishables expansion projects as well as normal replacement spending.
The budget calls for $192 million for retail expenditures. It breaks down as $130 million for fixed assets and working capital and $62 million for capital leases on company-owned stores.
The funding should provide for between 30 and 35 new corporate retail stores, including nine Cub Foods stores, principally in existing markets. Supervalu plans to add 20 Save-A Lot limited-assortment stores and seven other units, including two Max Club warehouses.
The remaining $25 million in the proposed budget will be used for corporate expenditures, principally computer-related.
"This capital budget represents our commitment to grow all areas of our business," said Mike Wright, chairman, president and chief executive officer of Supervalu. "Supporting the growth of our independent retail customers and expanding our corporately owned retail business will provide top-line growth, while the investment in distribution and technology will improve our efficiency."
Supervalu said seven franchised Cub Foods stores and 85 licensed Save-A-Lot units should open in 1995. If all units open as planned, Supervalu will end 1995 with about 120 Cub Foods stores and 525 Save-A-Lot units, of which about 100 will be corporately owned.
