LOS ANGELES, Sept 5 Supervalu Inc said
it would close about 60 stores as it works to turn around its
grocery business, which lags that of rivals Kroger Co
and Wal-Mart Stores Inc.
Supervalu on Wednesday said it would close the majority of
the "underperforming or non-strategic stores" before the end of
its fiscal third quarter ending Dec. 1.
The stores slated to be shuttered include 27 Albertsons
supermarkets located in Southern California and the
Intermountain West region as well as 22 Save-A-Lot locations.
Supervalu expects to record a pre-tax charge of
$80 million to $90 million in fiscal 2013 related to the
closures, with all but $3 million in estimated severance costs
Over the next three years, the company estimates that
closing the stores will generate between $80 million and $90
million in cash through real estate transactions, eliminating
cash operating losses and selling departmental assets.