Cub is a retail chain with stores in Illinois and Minnesota. It is a wholly owned subsidiary of SuperValu Inc., based in Eden Prairie, Minnesota. Its products are made by a variety of companies, including Tyson Foods, Hormel, and Nutro. As of December 2017, it had stores in 57 states. This growth is expected to continue, with the company aiming to expand into other areas.
The sale of Supervalu is yet another sign that the supermarket industry is changing. Supervalu recently announced that it would sell its retail business, which made up about one-third of its annual sales. This move will further change the grocery landscape in the Twin Cities. Since Rainbow Foods exited the market in 2014, Hy-Vee entered the market and Trader Joe’s and Fresh Thyme opened up shops, all of which are focused on lower prices and upscale shopping.
While the company has a handful of stores in Illinois, only one remained in Peoria. In Peoria, the store was rebranded as Shop and Save on October 9, 2010, and remained open until 2016. The only Cub store outside of Minnesota is the one in Freeport, Illinois, and the one in Madison, Wisconsin. But Cub Foods stores are no longer owned by SuperValu. The company is now concentrating on establishing their own grocery chain to increase sales and compete with larger chains.
However, the company has had a difficult time building one of the nation’s largest grocery chains. In fact, the company’s biggest problem was trying to run the nation’s largest store chains. After years of struggling and making mistakes, Supervalu Inc. decided to sell Cub and its retail division to a Rhode Island-based wholesaler for $2.9 billion. Its new owner plans to focus on building the best grocery chain possible, so the sale is not a surprise.
There are a few other major changes at the Supervalu chain. One major change is the name. Previously, the company operated three stores under the Cub Foods name. Now, the stores use the County Market name. However, one store in Bloomington, Illinois used the name Cub Foods under license from SuperValu. It is the first grocery store in the country to receive a LEED gold certification. The other three stores carry the Cub Foods name under license from the grocery chain.
The UNFI has also announced that it would spin off Cub as a separate entity, with dedicated resources. UNFI has said it would be unwise to own the retail business forever, and it will sell in stores when the time is right. UNFI’s third-quarter net sales were just shy of $6 billion, up about 12 percent from last year. Despite the recent changes, the company is still growing and is poised for a successful exit from its current situation.
In its Q4 earnings call, United Natural Foods Inc. said that the Cub Foods banner will probably be sold by the end of the next fiscal year. The company acquired Supervalu Inc. for $2.9 billion last year and has been making renovations to its retail store footprint. It is also planning to sell 29 Cub stores that are owned by franchise owners. However, it has yet to announce a date for selling the Cub Foods banner.
The sale of Supervalu will help United Natural Foods concentrate on the wholesale grocery business. United Natural Foods has already purchased the Eden Prairie, Minnesota-based Supervalu for $2.9 billion, and they plan to sell Cub and its retail properties. The sale of Cub will also allow United Natural Foods to focus on repositioning Supervalu’s name to another name. The company has already invested $3 million in the transaction. So, now the question is, who will buy Supervalu Cub Foods?
Two consumers have filed a class-action lawsuit against Supervalu Inc.’s Cub Foods division for mislabeling regular USDA choice beef. The company has been selling beef at inflated prices for five years. The plaintiffs, John Wylde, and Roberta Smith, were both customers. The lawsuit claims that Supervalu systematically mislabeled its beef and sold it at higher prices. They also say that Supervalu had sold Black Angus beef, which is a breed-specific premium beef.
As with any business, Cub Foods is an example of an American supermarket chain. The company began as a small Minnesota-based supermarket in 1968. The name “CUB” stood for Consumers United For Buying. The chain grew to eighty-three stores in Washington, Oregon, and Colorado, as well as in Colorado. As a subsidiary of SuperValu, Cub Foods expanded rapidly across the country. It was then purchased by SuperValu, a large chain of supermarkets.
Employees at Supervalu have improved quality of life benefits. A three-week paid vacation after eight years, six paid national holidays, paid bereavement leave, and Jury Duty leave are among the benefits that employees receive. The company also offers dental, vision, and life insurance. Employees at Kowalski’s Markets will also receive 401(k) contributions as well as $1.35 an hour. These benefits are a bargain.
SuperValu’s financial problems have made it difficult for the company to attract new investors. The grocery chain’s management team, led by CFO Martin Sloan, exploited provisions of the United States Bankruptcy Code and cultivated relationships with creditor lending institutions in the area. It then began to take over the property management of shopping centers formerly anchored by Cub operations. However, the situation hasn’t improved since.