SuperValu Inc (NYSE:SVU) shares were plummeting on Monday as the company is reportedly considering exploring a sale.
A Friday report from Bloomberg revealed that the retailing company is working with an adviser to consider its options, which include a potential sale, according to people familiar with the matter. The company has yet to make a final decision on whether or not it will seek a buyout from another company, according to the sources, which chose to remain anonymous as the details of the sale aren’t public yet.
Supervalu operates mainly as a grocery wholesaler that provides products to more than 1,800 stores. It only directly operates about 200 locations following the sale of most of its brick-and-mortar operations in recent years. The company’s private label brands include gluten-free Wild Harvest, as well as Stone Ridge Creamery, selling ice cream.
The retail industry has taken quite a hit since Amazon.com, Inc. (NASDAQ:AMZN) acquired Whole Foods last summer as the e-commerce retailer drastically lowered the prices of Whole Foods goods because it can. This move has prompted others in the industry to increase their spending in technology for food retail, as well as food delivery to bring in more shoppers.
Regional retailers such as SuperValu have been struggling to keep up with the pace of the grocery giants around the country, which explains why a sale may be on the horizon.
SVU stock is down 8% on Monday.
