Supervalu Case Study

850 Words 4 Pages
Register to read the introduction… During the first week of July of 2012, Supervalu’s prices were 24.3 % higher than Wal-Mart’s. Their goal is to get its prices in line with such traditional rivals and narrow the gap with discounters like Wal-Mart and Target (is Target really a discounter??). This year (before or after the data from July??), the company has already reduced prices by as much as 20 percent on 200 items. Even though Supervalu was the first to enter most of its markets, is has lost market share after Wal-Mart and Target entered the grocery market. Still, Cub Foods captures about a third of the Twin Cities market share with 35.4%.
Despite the fact that Supervalu is one of the nation’s largest supermarket operators, the firm is financially struggling with seventeen consecutive quarters of declining sales, and its stock, which peaked at $46 in mid 2007and is currently at $2.25. Supervalu has been hit hard by the current economy. The company has acquired a high debt that requires Supervalu to use a substantial part of its cash flow operations toward the payments of this

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