Supervalu Cuts National Brands to Make Way for Store Brands

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January 19, 2010

Supervalu Inc. said it plans to reduce national brand inventory by as much as 25 percent so it can more prominently display its own store brands. The focus will be on reducing redundant package sizes as opposed to eliminating entire product lines, according to a Wall Street Journal report.

During a recent analysts conference call, Supervalu CEO Craig Herkert said: "I don't think the consumer is going to look at it and say we've taken any choice away; in fact, I think...the consumer will look at better choice."

When the economy was strong, many grocers added a large number of new products to their stores to offer consumers vast selection, but the recession has many reversing course as shoppers continue to be very economical.

While many grocers such as Kroger have deeply discounted prices Supervalu has mostly held the, which has adversely affected same-store sales.

In the third quarter ended Dec. 5, Supervalu reported a 6.5 percent decline in same-store sales, and total revenue dropped 9.5 percent to $9.2 billion, according to the report.

The operator of Jewel, Albertsons and Save-A-Lot, also named Chuck Elias, a former Home Depot executive, as group vice president of strategy planning, which the Wall Street Journal said is "the third management shake-up in the past month."

Read These Related Articles:

• Kroger and Loblaw Roll Out Retail-Ready Packaging for Store Brands (Part 1 of 2)
• Part 2 of 2: Kroger and Loblaw Roll Out Retail-Ready Packaging for Store Brands
• Meijer and Kroger Forecast Double-Digit Store Brand Growth
• Marketing Expert Views Private Label as Brand Malpractice
• CPG Promotions Slow Delhaize Store Brand Growth

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