Supervalu Looks to Save Millions on Bags
It’s no longer a question of paper or plastic at Supervalu.
It’s strictly plastic at the chain’s stores unless customers bring their own
bags or specifically request paper. Double bagging is also out. What this all
comes down to is Supervalu looking at ways to cut costs — an estimated $6
million a year if it applies a little discipline at the checkout.
“We’re in a very competitive industry. Anything we can do to lower our
expenses will help us keep our prices as fair as possible,” Mike Siemienas,
a spokesperson for Supervalu, told The Wall Street Journal.
to the Journal, managers from Supervalu’s nine chains review
bagging figures on monthly conference calls. Cashiers and baggers in the Northwest
all “take a 41-question quiz on bagging.” The quiz has been made
available for use across the country.
Supervalu has taken a number of steps
under CEO Craig Herkert to improve its balance sheet and value proposition,
including closing stores (Shaw’s is probably the most high profile example),
selling the Bristol Farms chain, engaging in SKU rationalization and focusing
on opening more of its limited assortment Save-A-Lot stores. The company has
taken these actions while enduring 11 straight quarters of declining same-store
sales. Comp stores were down nearly five percent in the most recent quarter.
percent of respondents to a RetailWire survey on Feb. 3
thought it was “somewhat” or “very unlikely” that Supervalu’s
turnaround efforts would gain traction over the next year.
- At Supervalu, Cost Cuts Are in the Bag – The Wall Street Journal
- Will Jewel-Osco’s checkout changes leave shoppers holding the bag? – Chicago
- Expect fewer bags at Jewel-Osco – Chicago Tribune
- Albertsons parent is chintzy with bags – LA Observed
Discussion Questions: What do you think of Supervalu’s plan to save costs on bags at the checkout? Is this approach common at retail?