Supervalu, Minneapolis, said Thursday it is reducing its independent business organization from three regions down to two to reduce operating costs.
The company said it will operate with an East and West region, with the East region, based in Mechanicsville, Va., headed by Kevin Kemp and the West region, based in Hopkins, Minn., headed by Bill Chew. Kemp is president of the company's existing eastern region, while Chew is president of what is currently called the Midwest/Southeast region, based in Pleasant Prairie, Wis. Kemp and Chew will report to Janel Haugarth, EVP of Supervalu and president of independent business and supply chain services.
Supervalu provides wholesale supply and other services to 1,834 independent stores, in addition to operating its retail supermarket and Save-A-Lot divisions. The company said the East region will encompass approximately 800-plus stores, and the West region approximately 1,000.
“This new independent business organization will streamline the organization and reduce operating costs while continuing to drive sales growth with current and prospective customers,” Supervalu said in a news release.
“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.”
Supervalu said it anticipates the changes will result in a reduction of its workforce by approximately 200 positions throughout the independent business regional teams. After consolidating and eliminating 80 positions, the company said it will need to fill 120 open positions, for which impacted employees will be able to apply.
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