Supervalu Expands Target Supply Agreement

May 01, 2002

Supervalu Inc. says that it has expanded a grocery-supply agreement with Target Corp. By the end of this summer Supervalu will supply groceries to 74 SuperTarget stores in 15 states as well as 400 Target stores, reports The Wall Street Journal.

“Supervalu Inc. will coordinate the grocery supply for Target’s 400 namesake stores by the end of the fiscal year, up from the 270 Target stores for which it currently coordinates grocery supplies by third-party vendors,” writes James Covert of Dow Jones Newswires.

SuperTarget Stores will be supplied with groceries including meat and other deli items, baked goods, produce and dairy foods. Supervalu will also supply SuperTargets and Targets with its “Archer Farms” line of private-label groceries.

Some of the SuperTarget and Target stores in the expanded pact are currently supplied by Fleming Cos. However, Fleming will continue to supply 20 SuperTarget Stores in Texas, Oklahoma and Louisiana.

Moderator Comment: What will this deal mean for Supervalu? What will it mean to Target?

Fleming has been getting much of the attention of late on the grocery wholesaling front, but Supervalu adds on to its ledger with this Target deal. [George
Anderson – Moderator

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