US grocery operator Supervalu Inc has reported an increase in first-quarter net income as cost cuts helped offset a drop in sales.
The retailer announced today (26 July) that for the quarter ended 18 June, net income was up 10.4% to US$74m, despite sales falling 3.7% over the quarter to $11.11bn.
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For the quarter, retail food sales were down 4.4% to $8.6m. The company attributed the decline to a 3.9% fall in identical-store sales and a series of previously announced market exits. It said total retail square footage was down 2.1% to 63.5m due to market exits around New England.
First-quarter independent business sales declined 3.6% to US$2.5bn, which it primarily attributed to the sale of Total Logistic Control, which it offloaded in the fourth quarter of its last financial year.
“First-quarter results reflect the progress we are making on our 8 Plays to Win strategy, and we remain on track to deliver our fiscal 2012 guidance,” said Supervalu CEO and president Craig Herkert. “Our dedicated associates are utilising new planning tools, analytics and a hyper local focus to help us meet the needs of today’s consumers, while reducing shrink and improving our operations.”
