Supervalu: About To Call Private Equity Or Circling The Drain? [View article]
SVU will continue to decline and could go under eventually.
Management is not interested in re-structuring their supply chain cost model to compete with Wal-Mart/Target/Kroger...
They have so many unnecessary layers of costs in their supply chain they will always be out done by their competitors. Most of their products go thru intermediary firms & brokers - not directly buying from manufacturers. they probably pay on average 20% more than their competitors who buy direct from the manufacturers.
The reason you roll up firms into this size is to get economy of scale and not use intermediaries - someone didn't teach that to SVU management.
it's just a matter of time before they go under. Stay away from this pig.
Supervalu: About To Call Private Equity Or Circling The Drain? [View article]
Management is not interested in re-structuring their supply chain cost model to compete with Wal-Mart/Target/Kroger...
They have so many unnecessary layers of costs in their supply chain they will always be out done by their competitors. Most of their products go thru intermediary firms & brokers - not directly buying from manufacturers. they probably pay on average 20% more than their competitors who buy direct from the manufacturers.
The reason you roll up firms into this size is to get economy of scale and not use intermediaries - someone didn't teach that to SVU management.
it's just a matter of time before they go under. Stay away from this pig.