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EXHIBIT 99.1
Distribution and Retailing
[LOGO OF SUPERVALU]
PO Box 990
Minneapolis, MN 55440
612 828 4429
News Release
FOR IMMEDIATE RELEASE
CONTACT: Yolanda Scharton (investors)
PHONE: 952-828-4540
EMAIL: [email protected]
CONTACT: Rita Simmer (media)
PHONE: 952-828-4429
EMAIL: [email protected]
SUPERVALU CEASES PARTICIPATION IN KMART BIDDING PROCESS
MINNEAPOLIS, MN - January 19, 2001 - SUPERVALU INC. (NYSE: SVU) today announced
that it has ceased participating in the bidding process for Kmart's consolidated
grocery distribution business. "We were aggressive in pursuing the business but
it recently became clear that what Kmart required of us would not result in an
agreement that would be fair or make economic sense to SUPERVALU, our other
customers and our shareholders," said Jeff Noddle, SUPERVALU president and chief
operating officer.
Noddle added, "While our current regional Kmart business is profitable, the new
national agreement would require us to reduce our margins to unacceptable
levels. As we previously disclosed, minimal capital investment was made to
satisfy the requirements of the current Kmart business."
The Company said that it will provide additional information regarding the
financial impact of the decision within the next several days.
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SUPERVALU is the largest distributor of food products to grocery retailers in
the country. Through its network of 36 distribution centers, SUPERVALU provides
comprehensive logistics capability in the areas of procurement, distribution and
replenishment. Backed by $40 billion in purchasing power and a best practice
philosophy, SUPERVALU consistently provides value to its customers in the areas
of activity-based costing, cross-dock capability, on-time delivery, product
selection, and exceptional 24 by 7 service. Currently in test, SV Harbor,
SUPERVALU's new web-based ordering system offers enhanced flexibility and supply
chain benefits.
SUPERVALU is the tenth largest supermarket retailer in the country. SUPERVALU
operates a total of 1,168 stores including licensed locations. SUPERVALU
operates 205 price superstores under the Cub Foods, Shop `n Save, Shoppers Food
Warehouse, Metro and bigg's banners; 879 limited assortment stores, including
711 licensed locations that operate under the Save-A-Lot banner; and 84 other
supermarkets, including Farm Fresh, Laneco, Scott's Foods, and Hornbachers
stores.
Forward-looking statements in this news release, if any, are made under the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
SUPERVALU does not undertake to update forward looking statements made in this
news release to reflect actual results, changes in assumptions or changes in
other factors affecting such forward looking statements. Certain important
factors could cause results to differ materially from those anticipated by the
forward-looking statements, including the impact of changing economic or
business conditions, the impact of competition, the nature and extent of the
consolidation of the retail food and food distribution industries, the ability
to attract and retain customers for the company's food distribution operations
and to control food distribution costs, the ability of SUPERVALU to assimilate
acquired entities, the availability of favorable credit and trade terms, food
price changes, other risk factors inherent in the food wholesaling and retail
businesses and other factors discussed from time to time in reports filed by the
company with the Securities and Exchange Commission.
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