Retail Powerhouse

In a presentation to investors and analysts yesterday, Supervalu chairman/CEO Jeff Noddle said, “We have delivered strong financial performance while transforming the company for the future. We are executing our plans to generate long term profitable growth which includes delivering improved sales, allocating capital to fund our business opportunities, and improving our overall financial condition.”

Noddle also said that the company’s stores that have been remodeled as part of the Premium Fresh & Healthy program are generating good results with healthy sales increases well above overall identical store sales growth. Noddle said, “We are pleased with our early remodel performance and plan to maintain our commitment to the important remodel program, increasing our major remodels in fiscal 2009 to 165 stores, up from fiscal 2008’s 125 store remodels.”

Source: morningnewsbeat.com

Rumor or reality?

Hannaford can’t afford them on their own, but Delhaize certainly could, specially if they bring Euros back to the US.

Competitive issues?  Yeah, there is some overlap, but they can divest some stores.

Kroger could do it as well. They are sitting on a lot of money and are not as leveraged anymore.

A big acquisition like this would definitely give investors some confidence in what is already setting up to be a shaky 2008.