Supervalu announces Q2 results
MINNEAPOLIS — Supervalu on Wednesday announced its earnings for Q2 of FY2016. The company’s net sales were $4.06 billion, up only slightly (0.5%) from $4.04 billion in the same quarter last year.
Despite slight trouble in its different segments, Supervalu’s gross profit was 14.4% of its net sales ($583 million), a slight increase over its 14.2% profit in the same quarter last year. The company attributes this increase to higher margins in each segment, lower logistical costs and fees earned under transition service agreements.
The company saw a 1.6% decrease in same-store sales among Save-A-Lot stores and its same-store sales, though corporate Save-A-Lot stores saw a 0.9% increase in same-store sales. Despite the drop in same-store sales, net sales for Save-A-Lot rose 3.2% as the result of new store openings.
In the Independent Business segment, net sales were $1.83 billion, a slight decrease from last year’s $1.84 billion, which the company attributes to lower sales and lost stores. Operating earnings in the Independent Business segment were $2.7 percent of net sales ($49 million), a decline over last year that the company attributed to employee costs from new businesses.
The company’s Retail Food segment dropped 3.3% in same-store sales and fell 1.2% in net sales. Earnings were 0.9% of sales ($10 million) — about half of the net sales in the same quarter last year. High employee-related costs and higher shrink expenses are the cause, according to Supervalu.
Market Performance Group adds Merck vet to leadership team
PRINCETON, N.J. — Independent strategy consulting and sales management company Market Performance Group has tapped a former Merck executive to be part of its leadership team. Rhonda Johnson, who was Merck Customer Care’s U.S. chief customer officer, will be joining the company as its EVP and client lead.
“MPG has gained a great resource and leader in Rhonda,” MPG Managing Partner Marc Greenberger said. “At MPG, Rhonda is applying best practice learnings from her years of experience to help clients successfully tackle internal and external challenges and set themselves apart from the competition.”
In her role at Merck, which she had held since 2011, Johnson oversaw the company’s engagement efforts and worked to shape global selling strategies while focusing on talent management initiatives across sales and marketing organizations. Before Merck, Johnson was VP sales at Johnson & Johnson’s McNeil Nutritionals. She has worked directly for Johnson & Johnson and works with the Healthcare Businesswoman’s Association, where she is a board member and first vice president. Johnson has served on the National Association of Chain Drug Stores’ Executive Retail Advisory Board.
“Joining the MPG team provides the opportunity to work with amazing people and brands across a broad spectrum of categories, channels, and manufacturers,” she said. “Utilizing my experiences to help a wide range of companies solve their business challenges is quite rewarding.”