) has made additional appointments to its new executive team
following the completion of the strategic sellout of its markets
to Cerberus Capital Management LP.
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Under the leadership of former
) Chief Executive Officer Sam Duncan, who became Supervalu's CEO
in Feb 2013, the company made many changes to its management
The executive team now includes two new entrants, Randy Burdick
as executive vice president and chief information officer, and
Michele Murphy as executive vice president, human resources and
Randy Burdick, who replaces Kathy Persian, has 28 years of
experience at in leadership positions at several companies like
Advanced Micro Devices Inc.
). Prior to joining Supervalu, Burdick had served OfficeMax for
eight years as chief information officer.
Michele Murphy, who replaces Dave Pylipow, has 30 years of
experience. She had served Supervalu as senior vice president of
corporate human resources and labor relations for the last seven
J. Andrew Herring is expected to leave the company following the
completion of the deal on Mar 25, 2013. Herring held the position
of executive vice president of real estate, market development
and legal in Supervalu since 2010.
As a part of broad-based strategic alternatives, Supervalu will
sell Albertson's, Jewel-Osco, Acme, Shaw's and Star Market
chains, all of which combined come to about 877 stores. These go
to private equity firm Cerberus Capital Management LP, for $3.3
Management commented that it wants to streamline its operations
in order to focus on Save-A-Lot discount stores, as well as its
smaller regional chains Cub, Farm Fresh, Shoppers, Shop 'n Save
Very recently, Supervalu reshuffled its management team. Michael
Moore, the present chief marketing officer, was replaced by Mark
Van Buskirk, from Supervalu's rival grocery chain The Kroger
Company. He will take up the responsibility of executive vice
president of merchandising and marketing in the company.
Supervalu missed estimates in the third quarter of fiscal 2013
and also posted lower earnings from the year-ago quarter.
Moreover, the company reported negative identical store sales
successively for the past four years. The trend has continued in
the first half of fiscal 2013.
Now, in order to combat four successive years of negative
identical store sales and re-position the company for growth,
Supervalu is geared for expansion of its private brand portfolio
and to step up cost-reduction initiatives.
These are expected to reduce administrative and operational
expense by an additional $250 million by fiscal 2014.
We believe that the executive management turnaround could prove
beneficial to Supervalu's bottom line as all the new appointees
have extensive retail and grocery experience.
Currently, Supervalu carries a Zacks Rank #3 (Hold).