SuperValu Reports Second Quarter Drop

SuperValu Inc. (Minneapolis) reported second quarter fiscal 2011 net sales of $8.7 billion and a net loss of $1.470 billion, including non-cash goodwill and intangible asset impairment charges and certain other costs.

Second quarter retail food net sales were $6.7 billion compared to $7.4 billion last year, primarily reflecting the impact of identical store sales of negative 6.4 percent and previously announced market exits. Excluding Shaw's, which was impacted by a labor dispute settled early in the quarter, same-store sales declined 5.9 percent.

Retail food net sales in the second quarter of fiscal 2011 represented 77.3 percent of net sales compared to 78.3 percent last year.

“Our sales performance continues to reflect a difficult operating environment,” says Craig Herkert, SuperValu’s ceo and president. “As the company moves into the next phase of its business transformation, we remain focused on our customers and taking actions that will better meet their needs. I remain confident that we have the correct strategy in place to achieve long term success.”

In the second quarter, the company completed 24 major remodels, 2 minor remodels and 1 new traditional supermarket, as well as 18 new Save-A-Lot locations.