SUPERVALU's Hard Road Ahead

SUPERVALU has had a rough past few months. Investors have been hit with a barrage of bad news about the company, including a dividend cut and weak same-store sales. Now it looks as if things may be getting worse. The company announced that it will close 60 underperofrming or non-strategic stores in an effort to save up to $90 million in cash and shore up its operations for a turnaround.

The company operates in a deteriorating environment as increasingly more grocery dollars move toward broad-line retailers. While SUPERVALU is very cheap on paper, investors should still tread with extreme caution. See more in the following video.

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Austin Smith owns shares of SUPERVALU. The Motley Fool owns shares of SUPERVALU and Whole Foods Market. Motley Fool newsletter services recommend Whole Foods Market. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.


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