SuperValu announced it's third quarter results this week. For the first time in two years the company has shown a profit—$109 million—due mostly to cost cutting measures. The profits mark a big turned around from last year's third quarter which saw a loss of $2.94 billion. Revenue, however, was down 9% and same store sales fell by 6.5%. There was no mention of Acme's performance in any of the reports I found although it is generally understood that Acme is facing some tremendous challenges these days. SuperValu is planning a huge expansion of it's Sav-a-lot banner which may include the conversion of some Acme locations to the discount format.
SuperValu also announced it's plans to reduce store inventory by 25%. The Wall Street Journal has an interesting article on the subject but it's a little tricky to get to... click here and then click "Read entire article>>>" below the synopsis.
Well, well, well...Acme is not able to help SuperValu in their quest for money. What a shame. In the early days, corporate heads made sure the Customer was FIRST. In the golden days of Acme and into the early 90's much of the HUGE profits were used in other parts of the American Stores Empire.
ReplyDeleteIf not for Acme. The west coast would have crumbled fell off the earth.(as far as Lucky supermarkets goes) Most store upgrades and openings on the west coast were funded by Acme money. When Acme was on the top, they were pillaged and monies sent to dig the west out of their debt. Now that the cow has dried up, all they think about is downsizibg and closures. Typical BANKSTERS...
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