Fuels

Maintaining Focus

SuperValu continues to grow its fuel centers even as company realigns
EDEN PRAIRIE, Minn. -- Following an announcement last week that two top executives from SuperValu Inc. plan to retire and that the company will realign its structure, the future of the company's "fuel center" strategy has yet to be determined.

The company intends to "become more customer-focused," it said in a press release, combining its three retail regions and creating a new health and wellness division. While the release said nothing about the company's fuel centers, company spokesperson Haley Meyer told CSP Daily News, "There are no imminent changes to our [image-nocss] fuel-store strategy as a result of [this] announcement."

The announcement comes as SuperValu continues to grow its fuel centers. "We're standing at 133 fuel centers in 17 states," Mark Schumacher, corporate director of fuel management and convenience operations, told CSP Daily News, "with three currently under construction and a fourth new Express store approved for development in Chicago sometime later this year."

A year ago, the company had about 130 fuel centers, which are typically in the parking lot of one of the company's grocery stores, including Albertsons, Jewel and Shop 'n Save, among others.

SuperValu announced on Thursday the retirement of Mike Jackson, 55, president and COO, and Kevin Tripp, 55, executive vice president and president of the company's Retail Midwest region, effective August 14.

Following the departure of these executives, the company will realign its leadership structure to become more customer-focused, the company stated. Craig Herkert (pictured), who joined SUPERVALU in May as CEO, will assume the additional role of president. The company's three retail regions will be combined under Pete Van Helden, who will become executive vice president, retail operations. Van Helden currently serves as executive vice president, Retail West. The company's Save-A-Lot banner will report to Herkert, and Bristol Farms will continue to report to Pamela Knous, executive vice president and CFO.

The company will also create a new health and wellness division to facilitate stronger alignment between SUPERVALU's pharmacy operations and its health and beauty offering, creating a total health-and-wellness experience for customers. This new division will be led by Duncan MacNaughton, executive vice president of merchandising and marketing.

"Mike and Kevin have made significant contributions to SuperValu's growth over the past several years and have been instrumental in laying the groundwork for our company's ongoing success," said Herkert. "We wish them well as they move into a new stage of their lives."

Jackson and Tripp have both been with the company for more than 30 years (Jackson with SuperValu, and Tripp with the former Albertson's Inc.) and have held leadership roles in multiple functional areas.

"It has been a privilege to work with our associates, our independent retailers, the supplier community, and all of the people connected to this great industry," said Jackson. "These relationships have been the highlight of my career, and I will always value the opportunities and experiences I have had throughout my time with SuperValu."

"I have had the great pleasure of working with this company for 31 years, in many different challenging and rewarding leadership positions," said Tripp. "Above all, I have enjoyed working beside so many talented and capable colleagues."

The company's new leadership structure will further streamline the partnership between its retail operations, pharmacy operations and merchandising and marketing groups so that it can even more effectively anticipate and respond to the changing needs of its customers, the company stated.

"This is another critical step in the implementation of our centrally led merchandising model, designed to fully leverage SuperValu's scale while preserving our local relevance. Pete and Duncan will work closely together to ensure a smooth and effective transition," concluded Herkert.

Eden Prairie, Minn.-based SuperValu Inc. is one of the largest companies in the U.S. grocery channel with estimated annual sales of $43 billion. It holds leading market share positions across the United States with its approximately 2,500 retail grocery locations, including nearly 900 in-store pharmacies.

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