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BUSINESS
Shoppers' frugality cut Supervalu 2Q profit 42%
PORTLAND, Ore. -- Supervalu Inc., one of the nation's largest grocers, says it will revamp its strategy to draw consumers whose shopping habits may forever be changed.
After reporting another brutal blow to its bottom line, the company said it plans to double the number of Save A Lot discount stores it operates, cut prices in all its stores and reorganize its operations.
"Times are tough ... but we cannot and will not use the overall economy as an excuse," Supervalu CEO Craig Herkert said. "Supervalu must transform itself into a business that is customer-focused, dynamic and agile enough to meet the evolving needs of customers, whatever the environment. Clearly we have not done that recently."
Supervalu said weak consumer spending, deep discounts on top of lower prices that it passed along to consumers pushed its fiscal second-quarter profit down 42 percent.
The Minneapolis, Minn.-based company said it earned $74 million, or 35 cents per share, down from $128 million, or 60 cents per share, in the same quarter last year.
Revenue fell 7.5 percent to $9.46 billion.
