Investors have been feeling more confident about Supervalu following its decision to sell its five largest grocery chains to Cerberus Capital in 2013, including Albertson’s, Acme, Jewel-Osco, and Shaw’s/Star. The sales raised the company’s stock over 175%, almost tripling the company’s value, according to NYSEPost.
Now that the discount retailer is left with its core wholesale business - the Save-A-Lot limited-assortment banner as well as numerous regional chains - will it begin growing again in 2014? With its spike in value over 2013, it appears that investors are being reassured that the company can handle its debt and begin growing again on a modest scale.
Last Tuesday, there was a rise of 4.14% in Supervalu. The shares opened at $6.99 and climbed to an intraday high of $7.30 before closing at $7.29.
Can we expect to see the company continue its growth on a new scale?
Stay tuned to AndNowUKnow as we follow Supervalu’s performance in 2014.
