SUPERVALU Reconfigures National Logistics Network

Apr 10, 2001, 01:00 ET from SUPERVALU

    MINNEAPOLIS, April 10 /PRNewswire/ -- SUPERVALU (NYSE:   SVU) today
 announced that it has essentially completed the reconfiguration of its
 distribution network in a strategy to improve the Company's low-cost
 distributor status by utilizing a multi-tiered logistics model.
     With today's announcement of the sale of facilities in Maryland and
 Connecticut, and the additional announcement of the closure of a small
 facility in Keene, N.H., SUPERVALU has announced the sale or closure of seven
 facilities in total.  SUPERVALU's new and existing customers will be supported
 by a highly efficient network of upstream and downstream distribution centers
 providing seamless service to customers across the country.
     "Our swift implementation of the restructuring activity in our
 distribution network is critical to the execution of the Company's long term
 business strategy of leveraging a more efficient logistics infrastructure on
 the generation of sales within new and existing customer channels," said Jeff
 Noddle, SUPERVALU president and chief operating officer.  "We will have the
 newly reconfigured distribution network in place, timed with the wind-down of
 our Kmart business, to provide us with the efficiency to handle a significant
 volume of new business through the streamlined network."
     The logistics reconfiguration is part of the Company's broader
 restructuring efforts, announced last week.  Through these strategic efforts
 and the supporting business strategies, the Company said it expects to lower
 working capital requirements, reduce debt, target capital expenditures to
 higher growth opportunities, and thereby improve overall returns.
     Today, the Company announced the sale of its Perryman, Md.; and Suffield,
 Conn. facilities as well as closure of a small facility in Keene, N.H.  The
 Company announced last week that it was closing its distribution facilities in
 Great Falls, Mont.; Greenville, Ky.; and Hammond, La.  The Company also
 announced it would cease grocery distribution from its facility in Atlanta.
 The majority of these facilities are expected to cease operation by early
 summer.  The closure of the Keene, N.H. distribution center is set for later
 this fall.
     SUPERVALU operates a total of 1,194 stores including licensed locations.
 At year end, SUPERVALU operated 207 price superstores under the Cub Foods,
 Shop 'N Save, Shoppers Food Warehouse, Metro and bigg's banners; 905 limited
 assortment stores, including 727 licensed locations that operate under the
 Save-A-Lot banner; and 82 other supermarkets, including Farm Fresh, Laneco,
 Scott's Foods, and Hornbachers stores.  SUPERVALU also serves as primary
 supplier to approximately 3,200 supermarkets and 55 Cub Foods franchised
 locations, while serving as secondary supplier to approximately 2,250 stores.
     SUPERVALU is the 10th largest supermarket retailer in the country and is
 this nation's largest food distributor to grocery retailers.  At year-end,
 SUPERVALU had approximately 62,000 employees.
 
     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 execution of restructuring activities, 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.
 
 

SOURCE SUPERVALU
    MINNEAPOLIS, April 10 /PRNewswire/ -- SUPERVALU (NYSE:   SVU) today
 announced that it has essentially completed the reconfiguration of its
 distribution network in a strategy to improve the Company's low-cost
 distributor status by utilizing a multi-tiered logistics model.
     With today's announcement of the sale of facilities in Maryland and
 Connecticut, and the additional announcement of the closure of a small
 facility in Keene, N.H., SUPERVALU has announced the sale or closure of seven
 facilities in total.  SUPERVALU's new and existing customers will be supported
 by a highly efficient network of upstream and downstream distribution centers
 providing seamless service to customers across the country.
     "Our swift implementation of the restructuring activity in our
 distribution network is critical to the execution of the Company's long term
 business strategy of leveraging a more efficient logistics infrastructure on
 the generation of sales within new and existing customer channels," said Jeff
 Noddle, SUPERVALU president and chief operating officer.  "We will have the
 newly reconfigured distribution network in place, timed with the wind-down of
 our Kmart business, to provide us with the efficiency to handle a significant
 volume of new business through the streamlined network."
     The logistics reconfiguration is part of the Company's broader
 restructuring efforts, announced last week.  Through these strategic efforts
 and the supporting business strategies, the Company said it expects to lower
 working capital requirements, reduce debt, target capital expenditures to
 higher growth opportunities, and thereby improve overall returns.
     Today, the Company announced the sale of its Perryman, Md.; and Suffield,
 Conn. facilities as well as closure of a small facility in Keene, N.H.  The
 Company announced last week that it was closing its distribution facilities in
 Great Falls, Mont.; Greenville, Ky.; and Hammond, La.  The Company also
 announced it would cease grocery distribution from its facility in Atlanta.
 The majority of these facilities are expected to cease operation by early
 summer.  The closure of the Keene, N.H. distribution center is set for later
 this fall.
     SUPERVALU operates a total of 1,194 stores including licensed locations.
 At year end, SUPERVALU operated 207 price superstores under the Cub Foods,
 Shop 'N Save, Shoppers Food Warehouse, Metro and bigg's banners; 905 limited
 assortment stores, including 727 licensed locations that operate under the
 Save-A-Lot banner; and 82 other supermarkets, including Farm Fresh, Laneco,
 Scott's Foods, and Hornbachers stores.  SUPERVALU also serves as primary
 supplier to approximately 3,200 supermarkets and 55 Cub Foods franchised
 locations, while serving as secondary supplier to approximately 2,250 stores.
     SUPERVALU is the 10th largest supermarket retailer in the country and is
 this nation's largest food distributor to grocery retailers.  At year-end,
 SUPERVALU had approximately 62,000 employees.
 
     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 execution of restructuring activities, 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.
 
 SOURCE  SUPERVALU