SUPER VALU ANNOUNCES $425.2 MILLION BUDGET
SUPER VALU ANNOUNCES $425.2 MILLION BUDGET MINNEAPOLIS, March 4 /PRNewswire/ -- Super Valu Stores, Inc.
(NYSE: SVU) today announced a capital budget of $425 million for its fiscal 1993 year ending Feb. 27, 1993, including $150 million, a record amount of financing for the company's independent retailers.
Approximately $221 million of the fiscal 1993 capital budget is allocated for property, plant and equipment expenditures; $150 million is planned to be expended to support store development and financing for independent retailers; and $59 million is expected to be committed for non-cash expenditures, principally leases, for corporately owned retail food stores. "This budget represents an increase of 25 percent over our comparable fiscal 1992 authorization and is consistent with our previously announced plans to step up the company's growth rate," said Mike Wright, chairman and CEO. "We have increased our capital commitment to independent retail store development as well as accelerated the growth plan for our corporately owned retail food stores." Approximately $231 million, or 54 percent of the total, has been allocated to the company's retail support (wholesaling) businesses, including the cash and non-cash commitments totalling $150 million for the financing of retail projects for the company's independent retail customers. The increase of 50 percent over fiscal 1992's authorization for similar activities is due in part to the carryover of uncompleted projects begun in fiscal 1992. The balance of the retail support allocation covers regular replacement, productivity and capacity enhancement projects for the company's 17 retail support divisions. The capital budget also provides for significant step-up to a new level of growth in the company's corporately owned retail food businesses. Funding is provided for nine new corporate Cub Foods stores, two (Cub-format) Twin Valu food stores, plus the beginning of additional Twin Valu food stores and a third Twin Valu 155,000 square foot supercenter expected to open in calendar 1993. Funding is also provided for major renovations of 12 corporately owned Cub Food stores. The company anticipates this program would add about 20 percent to corporate Cub Foods selling space plus renovate 25 percent of existing selling space. The company also expects that six new franchised Cub Foods stores will open in fiscal 1993. If all stores open as planned, a total of 109 Cub Foods and Twin Valu food stores would be in operation by February 1993, 54 of which would be corporately owned. Super Valu is the nation's leading food distributor to independent retailers, supplying more than 2,700 food stores in 33 states. The company also owns approximately 100 retail food stores operating principally under the names of Cub Foods, Scotts and Twin Valu. -0- 3/4/92 /CONTACT: Mike Mulligan, 612-828-4441, or Rita Simmer, 612-828-4429, both of Super Valu/ (SVU) CO: Super Valu Stores, Inc. ST: Minnesota IN: FOD SU:
KH -- MN012 -- 5145 03/04/92 16:59 EST
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|Date:||Mar 4, 1992|
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