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Hanover’s Perspective

Supervalu streamlines & selects Hanover as East Region hub

Supervalu Inc. (NYSE: SVU), one of Hanover’s largest employers, announced plans for a streamlined independent business organization that will consolidate nationally three regions to two in order to reduce operating costs.  The new East Region for SuperValu will continue to operate from their current location in Hanover County, VA, and the West Region will be located in Hopkins, MN. Supervalu Inc. is one of the largest grocery wholesalers and retailers in the U.S. and has annual sales of approximately $17 billion.

“We are pleased that Supervalu continues to invest and expand their operations in their Hanover location, and this new, regional hub status is a testament to the county’s strategic, mid-Atlantic location,” comments Edwin Gaskin, Hanover County’s Economic Development Director.  “Supervalu’s commitment to growing their business from Hanover demonstrates the bottom-line benefit of a Hanover County location.  With easy access to many of the nation’s largest population centers and our competitive tax rates and lower operating costs, we are confident that Supervalu will be in a great position to continue their growth.”

Supervalu has approximately 35,000 full and part-time employees nationally.  As a result of this regional consolidation to the Mechanicsville office, the company anticipates a net gain of management positions for the new, Hanover-based East Region.  Nationally, they anticipate reducing its employee workforce by approximately 200 positions throughout its independent business regional teams.

Headquartered in Eden Prairie, Minneapolis, Supervalu serves customers across the United States through a network of more than 3,300 stores which includes more than 1,800 independent stores that are serviced primarily by the Company’s wholesale supply business.  Additionally, there are more than 1,300 Save-A-Lot stores that are also served through their distribution network.  According to the Richmond Times-Dispatch, the company said the East region will encompass approximately 800-plus and the West region approximately 1,000 of the independent stores.  The company said in a news release dated March 20, 2014 that this action “will streamline the organization and reduce operating costs while continuing to drive sales growth with its current and prospective customers.  The changes also take into consideration the Company’s ongoing commitment to delivering excellent value, service and customer programs and offerings that meet the rapidly changing needs of its independent grocery store customers nationwide.”  To lead the new organizations, Supervalu named Kevin Kemp president of the East region and Bill Chew president of the West region.