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Supervalu hits $4 billion for Q1 sales

Lower sales and higher employee costs, as well as acquired and new stores, contributed to a drop in Supervalu's Q1 retail sales compared to last year; however, the company's wholesale segment more than made up the difference. For the company as a whole, first quarter net sales were $4 billion compared to $3.77 billion last year, an increase of $239 million or 6.3 percent.

First quarter Wholesale net sales were $2.56 billion, compared to $2.28 billion last year, an increase of 12.4 percent. The company said the increase is primarily due to sales to new customers and increased sales to new stores operated by existing customers, partially offset by stores no longer being supplied by Supervalu and lower military sales. First quarter retail net sales were $1.39 billion, compared to $1.43 billion last year, a decrease of 2.7 percent.

“The results generated this quarter by our wholesale business were outstanding and demonstrate our ability to deliver on our strategy and commitment toward growing this segment,” Mark Gross, president and chief executive officer, said in a statement.

SuperValu recently completed the acquisition of Unified Grocers Inc. in a transaction valued at $390 million.

“We’re thrilled that we closed on the acquisition of Unified Grocers shortly after the end of our first quarter, and we’re now working together as one team to drive the business and integration efforts forward," Gross said in the statement. "We’ll begin reporting results in our second fiscal quarter that include the Unified business.”