SUPERVALU Begins the Conversion of Rainbow Stores - Analyst Blog

By
A A A

SUPERVALU Inc. ( SVU ) is geared to expand into untapped markets Recently, the company moved a step ahead in this regard.

The grocery retailer has started the conversion  (supplying Supervalu's items from its distribution center to the Rainbow stores) of the first of the 18 Rainbow stores acquired on May 7.  

On May 7, 2014 SUPERVALU and a consortium of traders entered a deal to take over 18 Rainbow grocery stores, including 13 Rainbow pharmacies and 3 Rainbow liquor stores, in the Twin Cities. (Read: SUPERVALU Bids for Twin Cities Stores )

Four other Twin Cities-based independent grocery retailers - Jerry's Enterprises, Haug Enterprises, Lund Food Holdings and Radermacher Enterprises - are also participating in the consortium.

Over the next two weeks, SUPERVALU along with its four Twin Cities-based independent retailers are expected to complete the conversion of all the 18 Rainbow stores. After the conversion, 10 Rainbow stores will be rebranded as CUB, 2 will become Byerly's outlets (located in Eden Praire and Woodbury) and 6 will retain the name under different ownership (located in Minneapolis, Plymouth, Richfield, West St. Paul, Maplewood and St. Paul (Midway)). The 10 CUB Food outlets will be located in Chaska, Lakeville, Minneapolis Lagoon, Minneapolis Quarry, Plymouth, Roseville, St. Louis Park, St. Paul, Eagan and Oakdale.

CUB Foods is a combination of corporate-owned and franchised locations. Post-deal closure, CUB Foods will total 66 stores in the Twin Cities and 77 stores banner-wide.

Of the 18 stores, SUPERVALU will have full ownership in 3 CUB stores, majority ownership in two CUB stores, minority ownership in three CUB stores and 100.0% ownership in two Rainbow stores as well as 11 pharmacies.

Other Stocks to Consider

SUPERVALU carries a Zacks Rank #3 (Hold). Other stocks in the retail sector worth considering include Pinnacle Foods Inc. ( PF ), The Hain Celestial Group Inc. ( HAIN ) and TreeHouse Foods Inc. ( THS ). While Hain Celestial and TreeHouse Foods sport a Zacks Rank #1 (Strong Buy), Pinnacle Foods carry a Zacks Rank #2 (Buy).


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

SUPERVALU INC (SVU): Free Stock Analysis Report

PINNACLE FOODS (PF): Free Stock Analysis Report

HAIN CELESTIAL (HAIN): Free Stock Analysis Report

TREEHOUSE FOODS (THS): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: SVU , PF , HAIN , THS

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Russell’s One Good Reason
Russell’s One Good Reason           
Tammy’s One Good Reason
Tammy’s One Good Reason             
Lisa’s One Good Reason
Lisa’s One Good Reason              

Stocks

Referenced

75%
100%
50%
100%

Most Active by Volume

87,324,760
  • $7.31 ▲ 22.04%
79,329,227
  • $17.16 ▲ 0.76%
74,153,988
  • $8.87 ▼ 5.84%
49,177,672
  • $34.01 ▲ 4.39%
44,197,901
  • $101.40 ▲ 1.38%
43,197,735
  • $11.70 ▲ 3.36%
42,712,021
  • $74.99 ▲ 1.19%
42,423,171
  • $108 ▲ 0.95%
As of 10/31/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com