SUPERVALU REALIGNING DC NETWORK

MINNEAPOLIS -- Supervalu here said it is realigning parts of its distribution network following the completion last week of its acquisition of Richfood Holdings, Richmond, Va.

ing Central marketing region, shuffling several executives in the process.

The Northeast region, based in New Stanton, Pa., formerly included distribution centers in Easton, Pittsburgh and Reading, Pa.; Perryman, Md.; and Milton, W. Va.

In the wake of the merger:

The facilities in Perryman, Md., and Reading, Pa., will become part of the new Richfood region, based in Richmond, Va., which will also encompass Richfood distribution operations in Pennsylvania and Virginia.

The Supervalu facilities in Easton and Pittsburgh, Pa., and Milton, W. Va., will move into the distributor's Central region, based in Xenia, Ohio, which already includes distribution centers in Fort Wayne, Ind.; Greenville, Ky.; and the Ohio Valley.

Alec C. Covington, Richfood's wholesale president and chief operating officer, will become president and chief operating officer of Supervalu's new Richfood region.

Nick Connavino, former president of the Northeast region, will become president of the expanded Central region.

Bill Shaner, former president of the Central region, will become executive vice president and chief operating officer -- a new post -- for Save-A-Lot, Supervalu's limited-assortment stores.

John C. Stokely, the former chairman, president and chief executive officer of Richfood, told SN he and John Belknap, Richfood's executive vice president and chief financial officer, have stepped down, with no specific future plans at this point.

According to Supervalu, the addition of Richfood will boost sales by about $4 billion to approximately $25 billion for the fiscal year ending in February 2001.

That includes approximately $8 billion in corporate retail sales, or 35% of the total.

The total includes incremental sales of nearly $1.8 billion from the three supermarket chains Richfood has been operating in the Mid-Atlantic area: 37 units of Shoppers Food Warehouse in Washington; 18 Metro stores in Baltimore; and 39 Farm Fresh stores in the Tidewater, Va., area.

Supervalu disclosed its intention in May to acquire Richfood for $1.5 billion.

Richfood stock ceased trading on the New York Stock Exchange last Monday, the day the deal closed.