SUPERVALU Affirms Ongoing Talks, Wal-Mart’s Neighborhood Markets Plan: Consumer Business Recap

Refuting a Thursday rumor that its discussions with suitors had broken down, SUPERVALU (NYSE:SVU) issued a release on Friday affirming that the previously announced review of strategic alternatives is ongoing as the grocery chain continues to be in active talks with several parties. However, the statement added that “there can be no assurance that this process will result in any transaction or any change in the Company’s overall structure or its business model.”

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At the most recent analyst meeting at Wal-Mart Stores (NYSE:WMT), the retailing giant reported that it would step up the launch of its Neighborhood Markets stores. The new grocery shops, at 40,000-square-feet, are between 25 and 35 percent the size of a typical supercenter. The Neighborhood Markets grocery stores were created for urban environments too crowded for the larger stores and their parking areas. Dollar store expansion in the market is led by its enlarged consumables offerings, especially for Dollar General Corporation (NYSE:DG) and Family Dollar Stores (NYSE:FDO) and a bit less for Dollar Tree (NASDAQ:DLTR).

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