Is the Wholesaler a Supervalu?
Supervalu improved earnings per share 16 percent in the second quarter of 2002 compared to the same period a year earlier. The earnings improvement was largely due to cost reductions and improved operating efficiencies.
The Eden Prairie, MN-based grocery wholesaler and retailer cautioned investors that the sluggish economy continues to affect consumer purchases. Many consumers are turning to private-label and on-sale items to reduce grocery expenses. Excess supplies of meat have also driven down prices and profits for Supervalu’s own retail businesses and those it supplies.
Moderator’s Comment: Are Supervalu’s grocery wholesale
and company-owned retailing operations in a strong position, considering the
uncertainty of the economy and the competitiveness of the supermarket industry?
Few companies have any better top exec than Jeff Noddle:
a definite plus in Supervalu’s favor.
Supervalu also just announced that it had reached an agreement
with Ukrop’s to continue supplying the Virginia-based supermarket operator’s
stores. With 27 stores, Ukrop’s may not be Supervalu’s biggest customer but
it is important, nonetheless. Ukrop’s is universally recognized for its leading
edge grocery practices. Their continuing relationship with Supervalu sends a
positive signal to others evaluating wholesale suppliers and the investment
community. [George
Anderson – Moderator]