SUPERVALU's Hard Road Ahead

Austin Smith
Austin Smith
Sep 8, 2012 at 12:00AM

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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