Supervalu Q2 profit plummets 42%

Minneapolis Grocery chain Supervalu reported Tuesday that its fiscal second-quarter profit dropped 42% on lower food prices, deep discounting to draw shoppers and previously announced store closings.

The operator of Albertsons and Jewel-Osco said it earned $74 million for the quarter, down from $128 million in the year-ago period.

Revenue fell 7.5% to $9.46 billion.

Craig Herkert, Supervalu’s CEO and president, said, “Consumer purchasing behavior, deflationary pressures, as well as our decision to make meaningful investments in price and promotions significantly impacted our second-quarter sales and margins.”

Herkert added that as the company moves into the last half of the year, it will focus on in-store execution and merchandising programs.

In the second quarter Supervalu completed 27 major remodels, four minor remodels and built one new traditional supermarket.