Supervalu Store Brands Grow as Transformation Continues

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January 17, 2012

Supervalu remains on plan with its business transformation as private label share and sales growth outpace overall company sales.

Craig Herkert

“Across our entire portfolio, sales are up from last year, led by demand for our entry level Shopper's Value label, which was up over 5 percent,” said Craig Herkert, president and CEO, during a conference call with analysts. Supervalu overall sales declined for its third quarter of the current fiscal year, but store brands continue to shine.

Supervalu’s Shopper's Value brand will have more than 300 SKUs by end of this fiscal year and the retailer will continue to add items to its fairly new the Essential Everyday umbrella private label brand.

“Essential Everyday is replacing our banner brands in areas such as frozen food, condiments and canned vegetables,” said Herkert. “Consumer acceptance of this brand has been in line with our expectations as it becomes the mainstay of our private brand portfolio. We see our teams reacting to where customers need value, and a lot of that is through our private label program. We're very happy with the growth we see in private brands, particularly Shopper's Value and Essential Everyday; the rollout of that is going according to plan.”

But it’s not just the value-priced store brands that are poised for growth. Supervalu is also expanding its premium offerings with private label products under the Wild Harvest and Culinary Circle labels, Herkert noted.

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