Supervalu, which walked into Boise six years ago and purchased the chain of grocery stores started by Joe Albertson and promised to have a significant presence in the Treasure Valley, now appears to be preparing to sell the chain. The move would follow a series of Supervalu layoffs in Boise, including a round of finance department redundancies in January 2010, outsourcing of information technology positions in October 2011, and 130 more corporate positions this past February.
The Wall Street Journal reports Supervalu said Wednesday that its earnings fell 45 percent in the latest quarter and would suspend its quarterly dividend.
According to the Journal, Supervalu said it plans to achieve an additional $250 million in administrative and operational expense reductions over the next two years through these and other efforts that will result in a leaner, more efficient organization. The company owns about 1,500 of its network of stores.
"But the real problem is losing customers to other traditional grocery stores, dollar stores, mass retailers, organic food stores and quick-casual restaurants as the competition becomes more fierce for consumer food dollars," wrote the Journal's Annie Gasparro and Nathalie Tadena.
In all, Supervalu owns 33 Albertsons stores in Idaho, employing approximately 3,300 people in the Gem State.
Following this morning's opening bell on the NASDAQ exchange, Supervalu's value dropped a whopping 45 percent, to $2.90 a share.