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Why SUPERVALU Is the Contrarian Grocer

The following video is part of our "Motley Fool Conversations" series, in which consumer goods editor/analyst Austin Smith and technology editor/analyst Andrew Tonner discuss topics across the investing world.

In today's edition, Austin and Andrew discuss SUPERVALU's reignited emphasis toward the low end of the grocery spectrum. While other companies like Whole Foods and Safeway are looking to the higher end -- and therefore higher-margin market -- SUPERVALU has planted its flag in the cost-conscious realm. The company will cater heavily to budget-minded shoppers and those on government-sponsored programs.

With its recent slide in share price, SUPERVALU certainly has some investors wondering if its turnaround efforts have fizzled. If you're in the mood for a retailer whose future is much more certain, we've uncovered one stock with so much promise that we've dubbed it: "The Motley Fool's Top Stock for 2012." We've created a special free report for investors to uncover this soon-to-be rock star. The report highlights a company that is revolutionizing commerce in Latin America, and you can get instant access to the name of this company. Thousands have already requested the report, which is free today, but it won't be forever, so click here to access it now.

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Andrew Tonner and Austin Smith have no positions in the stocks mentioned above. The Motley Fool owns shares of SUPERVALU, Whole Foods Market, and Wal-Mart Stores. Motley Fool newsletter services recommend Whole Foods Market and Wal-Mart Stores. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 24, 2012, at 4:04 PM, philc49 wrote:

    Are you kidding me?? SVU has virtually no liquidity, low margins, and now plans to compete against Sam's Club, GFS, and WalMart for the "low" end of the grocery market. I would suggest that this company's best bet is chapter 11 to get rid of its current long term debt load and give it a chance to do something on the upside.

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DocumentId: 1764308, ~/Articles/ArticleHandler.aspx, 5/27/2012 3:35:24 AM

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Related Tickers

5/25/2012 4:00 PM
SVU $4.76 Up +0.10 +2.15%
SUPERVALU INC. CAPS Rating: ***
WMT $65.31 Up +0.24 +0.37%
Wal-Mart Stores CAPS Rating: ****
SWY $19.22 Up +0.39 +2.07%
Safeway, Inc. CAPS Rating: **
DG $47.58 Down -0.07 -0.15%
Dollar General CAPS Rating: ***

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