The Minneapolis Star Tribune reports on an interview with Supervalu CEO Jeff Noddle in which he defended the company’s decision to swap its New England distribution business for the former Fleming Companies' Midwest operations, a decision that has caused the company to lose about $400 million in annualized sales.
Noddle told the paper that the decision made Supervalu a leaner and, in the long term, more profitable company. "I only hope we can find more opportunities like that asset exchange," he said. And, he said, Supervalu’s expansion of its Save-A-Lot discount supermarket format has bolstered its retail sales, giving it a long range advantage in the marketplace.
Noddle told the paper that the decision made Supervalu a leaner and, in the long term, more profitable company. "I only hope we can find more opportunities like that asset exchange," he said. And, he said, Supervalu’s expansion of its Save-A-Lot discount supermarket format has bolstered its retail sales, giving it a long range advantage in the marketplace.
- KC's View:
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It sounds like Noddle is getting grief from analysts about his decisions…but we are so abidingly cynical about the attitudes of the investor class that we almost automatically side with Noddle and Supervalu. They see a short term loss of business, and Supervalu sees a move that positions it better for the long term.
No contest.
