SuperValu considers spinning off fast-growing Save-A-Lot business

MINNEAPOLIS - SuperValu said Tuesday it's looking to spin off its heavy-discount Save-A-Lot supermarket chain into a separate company.

Save-A-Lot is a national chain with 1,300 stores - including one in Cedar Rapids - and is considered Supervalu's crown jewel by some stock analysts. Save-A-Lot makes up about one-quarter of the company's sales.

SuperValu, based in suburban Minneapolis, has set no timetable for the disposition of St. Louis-based Save-A-Lot, and noted in a statement that there is no assurance a spinoff will happen.

'Today's announcement reflects our commitment to continuing to explore ways to maximize value for our shareholders,” chief executive Sam Duncan said in a statement. 'We believe a separation of our Save-A-Lot business could allow Save-A-Lot, our Independent (wholesale) business and our Retail Food banners to better focus on their respective operations.”

Save-A-Lot, which SuperValu has owned for more than 20 years, is in one of the few parts of the grocery business that could be called fast growing. It's an ultralow price chain, which relies heavily on private-label goods, and competes particularly with Aldi, Wal-Mart and dollar stores.

SuperValu has beefed up Save-A-Lot's offerings, including rolling out full-scale meat counters.

'I have said from my first conference call that Save-A-Lot is a business with great growth potential,” Duncan told analysts in a conference call Tuesday.