Supervalu Inc. (SVU:US), the grocery-store operator that sold five brands to a private-equity led group last week, plans to eliminate 1,100 jobs as it trims costs amid falling sales.
The cuts, which will come from its corporate and store- support offices, include current positions and open jobs that won’t be filled, the Eden Prairie, Minnesota-based company said today in a statement. The reductions represent about 3.1 percent of the workforce for the company, which has about 35,000 employees.
The grocery chain has eliminated jobs and accelerated price cuts at stores as it struggles to keep pace with discounters including Wal-Mart Stores Inc. and Target Corp. (TGT:US) Supervalu sales (SVU:US) have fallen for three straight years.
A Cerberus Capital Management LP-led investor group in January agreed to acquire Supervalu’s Albertsons, Acme, Jewel- Osco, Shaw’s and Star Market grocery stores in a transaction valued at about $3.3 billion. The deal was completed March 21, Supervalu said today.
Supervalu rose (SVU:US) 1.4 percent to $5.12 at the close in New York. The shares have more than doubled this year, compared with a 9.6 percent gain for the Standard & Poor’s 500 Index.
To contact the reporter on this story: Kevin Orland in Chicago at email@example.com
To contact the editor responsible for this story: Robin Ajello at firstname.lastname@example.org