Supervalu Inc., made an announcement last week that they will be consolidating its wholesale operations and selling some of their distribution centers as part of a movement to streamline their operations. The Eden Prairie, Minn.-based wholesaler and retailer plans to consolidate its distribution regions from three to two, according to reports in the Milwaukee Business Journal and the Minneapolis Star Tribune.
The process should create new east and west operations headquartered in Hopkins, Minn., and Mechanicsville, Va., according to the reports.
Supervalu plans to close its Pleasant Prairie, Wis., regional office but keep a small office comprised of sales and marketing staff, according to the reports.
The change follows the 2013 closing of the Pleasant Prairie distribution center which was purchased by Grand Rapids, Mich.-based Meijer Inc.
Meijer plans to expand that facility to service the chain’s first Wisconsin stores which are scheduled to open in 2015.
Wholesaling has become more important to Supervalu after it sold its four biggest grocery chains, according to the reports.
In early 2013, Supervalu sold its Albertsons, Acme, Jewel-Osco, Shaw’s and Star Market stores. The changes helped wholesaling become Supervalu’s biggest business, increasing its revenue from 23 percent to nearly 50 percent, according to the reports.
Supervalu operates more than 1,900 stores, including Save-A-Lot as well as the Cub, Farm Fresh, Shoppers, Shop ‘n Save and Hornbacher’s banners.
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