Supervalu Company Analysis
COMPANY ANALYSIS PAPER
SUPERVALU, INC.
Table of Contents
1. Introduction
Decisions on where and how to invest are always challenging. Many public companies provide suitable opportunities for investors. For the investor, success is defined by how the return on investment is viewed. An important benchmark to achievement of positive returns is to select investment options where there is a good potential for capital growth in share price; and where the firm’s share may be purchased at a low price and offloaded later at a higher price.
One company that may provide investors such an opportunity is Supervalu, Inc. Supervalu is an Eden Prairie, Minnesota based retail supermarket chain that has experienced sharp drop in the value of their share over the past several years. The company has committed itself to a turn-around by replacing Wayne Sales with Sam Duncan as CEO. Duncan followed his appointment as CEO by shuffling the top management deck and bringing in a new president in charge of Save-A-Lot, the companies most important subsidiary. All this was done with the ultimate aim of speeding up the turnaround. The company is also trimming down with layoffs and selling some of its well known brand to investment group Cerberus Capital (Anderson, 2013).
2. Overview of Supervalu
Supervalu is an American retail giant. It has been in business for more than a century. With over 130,000 employees, it is the third largest food retail company in the United States (after Kroger and Safeway), and ranks number seventy five on the 2012 Fortune 500 list of America’s largest companies (Forbes, 2012). On June 2nd 2006, the company announced the purchase of Boise, Idaho based Albertsons, Inc and all of its 1,124 stores. The Supermarket News magazine’s ranking of “Top Wholesalers for 2008” put Supervalu at the very top of the list (Supermarket News, 2008). The company has been listed on the New York Stock Exchange since 1967.
The company’s mission is served by
SUPERVALU, INC.
Table of Contents
1. Introduction
Decisions on where and how to invest are always challenging. Many public companies provide suitable opportunities for investors. For the investor, success is defined by how the return on investment is viewed. An important benchmark to achievement of positive returns is to select investment options where there is a good potential for capital growth in share price; and where the firm’s share may be purchased at a low price and offloaded later at a higher price.
One company that may provide investors such an opportunity is Supervalu, Inc. Supervalu is an Eden Prairie, Minnesota based retail supermarket chain that has experienced sharp drop in the value of their share over the past several years. The company has committed itself to a turn-around by replacing Wayne Sales with Sam Duncan as CEO. Duncan followed his appointment as CEO by shuffling the top management deck and bringing in a new president in charge of Save-A-Lot, the companies most important subsidiary. All this was done with the ultimate aim of speeding up the turnaround. The company is also trimming down with layoffs and selling some of its well known brand to investment group Cerberus Capital (Anderson, 2013).
2. Overview of Supervalu
Supervalu is an American retail giant. It has been in business for more than a century. With over 130,000 employees, it is the third largest food retail company in the United States (after Kroger and Safeway), and ranks number seventy five on the 2012 Fortune 500 list of America’s largest companies (Forbes, 2012). On June 2nd 2006, the company announced the purchase of Boise, Idaho based Albertsons, Inc and all of its 1,124 stores. The Supermarket News magazine’s ranking of “Top Wholesalers for 2008” put Supervalu at the very top of the list (Supermarket News, 2008). The company has been listed on the New York Stock Exchange since 1967.
The company’s mission is served by
References: Anderson, Jake, (January 10th 2013), Supervalu to Sell 5 Chains in $3.3B Deal, Replace CEO. Retrieved April 13th 2013 from http://tcbmag.com/News/Recent-News/2013/January/Supervalu-to-Sell-5-Chains-in-$3-3B-Deal,-Replace Patton, Leslie, (July 30th 2012), Supervalu Names Wayne Sales CEO Amid Strategic Review. Retrieved April 13th 2013 from http://www.bloomberg.com/news/2012-07-30/supervalu-names-sales-chief-executive-officer-to-replace-herkert.html Forbes Inc. (2012), Fortune 500 List of Best Companies (2012). Retrieved April 13th 2013 from http://money.cnn.com/magazines/fortune/fortune500/2012/full_list/ Supermarket News (2008, SN Top Wholesalers for 2008. Retrieved April 17th 2013 from http://supermarketnews.com/top-75-retailers-amp-wholesalers/sn-top-wholesalers-2008 Supervalu, (2012). About Supervalu. retrieved April 13th 2013 from http://www.supervalu.com/sv-webapp/about/about.jsp Boehme, Kate, (September 16th 2012), Can Supervalu Survive Its Debt? Retrieved April 18th 2013 from http://seekingalpha.com/article/869491-can-supervalu-survive-its-debt Dezember, Ryan and Hudson, Kris (January 10th 2012), Property Is Plum in Supervalu Deal. Retrieved April 18th 2013 from http://online.wsj.com/article/SB10001424127887324581504578233411904827872.html -------------------------------------------- [ 1 ]. This is not a sufficient enough amount to be considered a significant investment.