Supervalu sticks to strategy despite Q3 losses
MINNEAPOLIS — Supervalu said it is sticking to its "8 Plays to Win" strategy, a multipronged plan designed to benefit the company and its customers, despite reporting several losses during the third quarter.
The supermarket retailer reported its net sales during the third quarter of fiscal 2012 dropped about 5% to $8.3 billion, compared with nearly $8.7 billion in the year-ago period, and also posted a net loss of $750 million, or $3.54 per diluted share, compared with a net loss of $202 million in the third quarter of fiscal 2011.
Third-quarter retail food net sales also took a hit, dropping to $6.3 billion from $6.6 billion last year. The drop was influenced by same-store sales of -2.9% and previously announced market exits. Along with store closures, market exits also impacted Supervalu’s total retail footage, which decreased 1.5% to 63.6 million sq. ft.
Supervalu president and CEO Craig Herkert attributed the struggles to the "difficult economic environment and pressured consumer," but noted the company will continue to move forward with its 8 Plays to Win strategy, which includes such initiatives as simplifying operations and logistics to make it easier for Supervalu to operate as one company; improving the shopper experience through more-consistent value pricing; a focus on fresh, localized merchandising and hassle-free shopping; and committing to the growth of the Save-A-Lot banner and the number of independents utilizing Supervalu’s supply chain services.
"Even with [these issues], we continued to make progress against our plan, allowing us to invest in price to deliver everyday value and hyper local choices that meet the needs of our customers in the diverse neighborhoods we serve," Herkert said.
Supervalu’s full-year earnings guidance now is a loss of $2.58 to $2.48 per diluted share on a GAAP basis. Excluding the goodwill and intangible asset impairment charges recorded in the third quarter, full-year earnings guidance is $1.20 to $1.30 per diluted share, in line with the company’s previous GAAP guidance.
Winn-Dixie joins Diabetes Prevention and Control Alliance
ORLANDO, Fla. — Winn-Dixie on Tuesday joined the Diabetes Prevention and Control Alliance, an initiative aimed at tipping the scales against the epidemic of diabetes, prediabetes and obesity by expanding access to community-based programs that use evidence-based approaches to help prevent and control diabetes.
“We welcome Winn-Dixie as a new alliance partner and look forward to working together to help people in Florida and across the country learn how to take control of their diabetes and improve their health,” stated Deneen Vojta, SVP UnitedHealth Group and chief clinical officer of the Diabetes Prevention and Control Alliance. “The DPCA programs have been proven to make an impact on the nation’s diabetes epidemic, and new partners like Winn-Dixie are helping to broaden the reach of these programs to help individuals, families and communities live healthier lives.”
Trained Winn-Dixie pharmacists in 29 select Florida Winn-Dixie stores in Jacksonville, Orlando and Tampa will support patients enrolled in the Alliance’s Diabetes Control Program to help people with diabetes learn to better manage their condition and adhere to their physicians’ recommendations.
Winn-Dixie joins UnitedHealth Group, the Y, Walgreens, Novo Nordisk, Albertsons, Kroger and others as Alliance partners.
Coalition of consumer groups opposes ESI-Medco merger
WASHINGTON — A coalition of consumer groups on Tuesday joined its collective voice to the number of constituents opposing the Express Scripts-Medco merger in a letter to the Federal Trade Commission, according to a report filed by Reuters.
"Health plans have distinctly different interests, and thus have not been adequate protectors of consumer concerns," they wrote in the letter addressing FTC chairman Jon Leibowitz. "As the PBM market continues to consolidate, health plans will only become less able to protect consumers. This merger will create a dominant PBM with the market power and leverage to effectively force plans into restricted networks that will ultimately harm consumers."
The coalition included the Consumer Federation of America, Community Catalyst, the National Consumers League, the National Legislative Association on Prescription Drug Prices and U.S. PIRG, the federation of state Public Interest Research Groups.
For the full report, click here.