Supervalu Q3 sales disappoint

Supervalu Inc. swung to a loss in its third quarter amid increased competition in the retail segment.



The company reported a net loss of $26 million during its 2017 fiscal third quarter, ended Dec. 3, as revenue fell 1.4% to $3 billion.



The loss, however, included a settlement charge of $41 million related to pensions and also store closure charges.



Supervalu was dragged down by the performance of its retail unit, where revenue fell 3.4% to $1.06 billion. Same-store sales were down 5.7%. The company’s wholesale business edged up to $1.91 billion.



Supervalu completed the sale of its Sav-A-Lot business on Dec. 6 — after the third quarter ended — and presented Sav-A-Lot results as discontinued operations.



“The successful sale of Save-A-Lot early in the fourth quarter provides Supervalu with additional flexibility to operate and grow our business,” said president and CEO Mark Gross. “Additionally, our wholesale team has done a tremendous job delivering for our customers. It is a significant accomplishment that we increased wholesale sales compared to last year given the sales lost at the end of fiscal 2016. Unfortunately, in our retail segment we have not been able to overcome persistent deflation, competitive impacts, and other factors. It takes time to change customers’ shopping habits, but our team is dedicated to improving our results."