Supervalu sues Wal-Mart in St. Paul, Minn.

Minneapolis Grocer Supervalu has accused Wal-Mart Stores of violating lease limits on food items sold at its store on University Avenue in St. Paul, Minn.

According to a Monday report by the Star Tribune, Eden Prairie, Minn.-based Supervalu, along with landlord DDR MDT Midway Marketplace filed suit against Wal-Mart last week, alleging that the world’s largest retailer is using more than 7,500 sq. ft. of its space at the Midway Marketplace shopping center to sell groceries. Supervalu's Cub Foods also has a store at the University Avenue center.

Supervalu and DDR say Wal-Mart's lease limits food sales at the store to 7,500 sq. ft. and 10% of shelf space. In the suit filed in Ramsey County District Court, Supervalu said Wal-Mart may be over the 10% mark, too.

On May 3, DDR gave Wal-Mart written notice that it was in default of its Midway Marketplace lease, the suit says. DDR demanded that Wal-Mart immediately reduce space devoted to food and stop selling fresh-baked goods, frozen meat and dairy products.