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Bloomberg reports that Supervalu plans to expand its Save-A-Lot limited assortment concept “in urban areas to fill in gaps left after larger chains moved to the suburbs ... About half of Save-A-Lot’s stores will ultimately be located in metropolitan areas, said Bill Shaner, president and chief executive officer of Save-A-Lot. The expansion is still in the planning phase, he said in a telephone interview.”

Shaner points out that Save-A-Lot currently has stores in cities like Philadelphia, Cleveland and Detroit, and is planning to enter the Washington, DC, market within several years.

“Some of the urban markets have a dearth of supermarkets that are quality grocers delivering good, nourishing food at good prices,” Shaner tells Bloomberg. “We offer a good solution for that opportunity and we are very focused on that.”
KC's View:
I had the opportunity not that long ago to spend some time in a Save-A-Lot store in New Orleans, and was extremely impressed...if this is the Supervalu urban model, it strikes me as extremely viable.

I keep hearing that there have been a series of nonstop meetings at Supervalu headquarters as top management - led by CEO Craig Herkert, who reportedly has been intimately involved - looks to fashion a short-term marketing and merchandising strategy that will help the company regain a sense of viability on both Wall Street and Main Street. So let’s see what additional initiatives come out of Minnesota...