SUPERVALU, Inc. F1Q10 (Qtr End 07/28/09) Earnings Call Transcript

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2009-07-28 11:46:11.0

Tags: Barclays Plc., Call Transcript, Earnings, SUPERVALU Inc., Sales Strategy, Sales Force Management, Sales, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Meredith Adler - Barclays Capital.

Meredith Adler - Barclays Capital

Operator

Your next question comes from Susan Anderson for Deborah Weinswig – Citigroup.

Meredith Adler - Barclays Capital

I would like to just start talking a little bit about your comments about store execution and operations and maybe you could talk about changes in how you're going to hold the operating folks accountable. Are there new incentives, or how do you communicate to them that you're raising the bar?

Craig Herkert

I think we've started with the organization realignment I spoke of earlier and having all of the operations ultimately of our traditional retail banners reporting up to Pete. So I think just getting clarity in reporting relationships will help.

And other than that I don't know that I want to say more at this point since that is a work in progress that we are embarking on. I am confident, however, as I said earlier, that we will increase and improve our ability and our speed with which we can make these decisions operational.

Meredith Adler - Barclays Capital

I know that the company has been working hard to improve its relationship with vendors and to get more support from them. Has that gone backwards at all, given how weak the sales are? Or are you making progress the way you wanted to with vendors?

Craig Herkert

I don’t think it's gone backwards. I would say to you, based on our early reviews, it probably hasn't progressed at the speed with which we would have like and you will see us address that in the very near future.

Meredith Adler - Barclays Capital

I know you haven't come up with your sort of long-term vision yet, but it's not clear why the Salt Lake City market was non-core to you. Maybe because your market share position wasn't good, or does it have something to do with the fact that it doesn't really fit in to the sort of dense urban, suburban definition of many other markets where you operate?

Craig Herkert

I think it's more the former than the latter. The interesting thing about our company is we can actually perform really well in small markets and really dense urban markets. We have successful formulas for both. I think the Salt Lake City issue is more one of market share.

Meredith Adler - Barclays Capital

 

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