Where does Supervalu go from here?

I don’t often comment on this blog (or at RetailWire) about grocery retail. However, Supervalu’s recent announcement that it is considering alternatives to its current business model is worth noting:

I don’t see Supervalu surviving simply by lowering prices in its midtier stores. From my experience shopping in stores like Jewel or Star Market, there are stronger grocery operators out there (Kroger, for example) who would be smart to look at selected acquisition targets in the Supervalu store portfolio. Meanwhile, the best breakup value for investors might lie in a spinoff of Supervalu’s original supply chain business.

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