retail news in context, analysis with attitude

...with brief, occasional, italicized and sometimes gratuitous commentary…

Reuters reports that Supervalu "is preparing to explore an outright sale as an alternative to a spin-off of its discount grocery retail chain Save-A-Lot, according to people familiar with the matter." The story says that "Supervalu has received interest in Save-A-Lot from several private equity firms, and has told them that it will consider offers once it registers the unit with regulators for a spin-off in early 2016, the sources said this week."

• The New York Times this morning reports that pet supplies retailer "Petco is near an agreement to be acquired by CVC Capital Partners and the Canadian Pension Plan Investment Board for $4.7 billion."

The story notes that Petco "has been bought and sold by TPG Capital and Leonard Green & Partners twice. The first time was in 2000, when they acquired the retailer for $600 million, and then took it public two years later. Then, they bought it back in 2006 for $1.68 billion."

Petco had "filed to go public in August," the Times writes, "but was simultaneously pursuing a sale."

• The Battle Creek Enquirer reports that Kellogg Co. will unveil more than 40 products in early 2016 to reflect consumer trends. The products will range from breakfast options to frozen food products, and will include both convenience-oriented items and products defined as "wholesome."

Two notes here. First, this is what companies have to do in order to be relevant and to grow ... you can't just stand pat with existing lines, because customers are not standing pat. Second, in the interest of full disclosure, I have to point out that Kellogg Co. is a valued MNB sponsor ... for which we salute and thank them.
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