NEW YORK (AP) - SuperValu said Tuesday that it may spin off its discount grocer Save-A-Lot into a separate publicly traded company as competition in the industry intensifies.
NEW YORK (AP) — SuperValu said Tuesday that it may spin off its discount grocer Save-A-Lot into a separate publicly traded company as competition in the industry intensifies.
Shares of SuperValu Inc. jumped nearly 13 percent in premarket trading Tuesday.
The company says the split will help each company focus on finding ways to grow. SuperValu Inc. has been getting smaller in recent years, selling its Albertson's, Jewel-Osco and other chains.
Rival chains have been combining. Last month, the owner of Stop & Shop and Giant stores said it will merge with the parent company of Food Lion to operate 6,500 stores around the world. And discounter Dollar Tree completed its dealt to buy Family Dollar earlier this year, bringing its store count to about 13,000.
Save-A-Lot has more than 1,300 stores around the country, selling fresh meat, vegetables and other groceries. SuperValu, based in Eden Prairie, Minnesota, distributes grocery items to nearly 3,600 stores and also operates the Cub Foods, Shop 'N Save and Hornbacher's chains.
SuperValu said it doesn't have a timeline for when the separation may happen.