SUPERVALU ACHIEVES RECORD SALES OF €2.2BN IN 2007

7 April 2008

SuperValu, Ireland’s leading independent supermarket network, today (Monday, 7th April 2008) announced a record sales performance of €2.2 billion in the Republic of Ireland, a 10% increase over its 2006 performance.

The results were announced by Donal Horgan, Managing Director of SuperValu, at its national conference in Killarney, which was attended by over 600 delegates. At the conference, SuperValu also announced details of job creation, investment and new store openings for 2007 and 2008. Key highlights included:

2007
• Sales up 10% to €2.2bn with like-for-like growth of 8%;
• 9 new stores opened at an investment of €17.6 million with a further €57.8 million invested in the revamp of 36 existing stores. This brings to €75.4 million the total investment made by SuperValu’s independent retail partners;
• Over 1,300 new jobs created in 2007 across the SuperValu network.

2008
• In 2008 €25 million will be invested in the opening of 8 new stores, with a further €39 million to be invested in the revamp and extension of a further 41 existing stores;
• 700 new jobs to be created bringing to over 13,000, the total number of people employed across the SuperValu network;

Speaking at the Conference, Mr. Donal Horgan, Managing Director of SuperValu said; “SuperValu’s sales performance in 2007 was as a result of significant investment on the part of our retail partners and also as a result of our focus on delivering the best quality, value and choice to Irish consumers.”

“SuperValu’s brand positioning is ‘Real Food Real People’ which differentiates the brand from its competition with its focus on fresh food, customer service and involvement in the local community. We believe the combination of this unique offering, alongside the SuperValu focus on price and value is what is delivering a different and better offer to consumers and contributing to its above market share growth. In fact, on release of the recent National Consumer Price survey, when SuperValu stores were in the number one, two and three cheapest positions across a basket of 67 common items, Ann Fitzgerald, Chief Executive of the NCA commended SuperValu for providing real competition to the multiples in the Irish market.”

“Though operating in a more uncertain economic climate, we are confident that as a result of the focus on developing the brand and our offer to consumers, SuperValu is positioned to compete and to continue to develop its store network in 2008. We have responded to consumer demands for fresh quality products, value for money and convenience and have developed our offer around these demands.”


“SuperValu has superb food credentials with butchers present in all our stores and an exclusive bakery offering rolling out across the network. However, the fresh food offering, which is synonymous with the SuperValu brand, continues to be an absolute focus in terms of developing our business. We have also developed our own brand range further with a series of new launches including; ‘Supreme’, ‘Just Cook’, ‘Goodness’ and ‘Cooks Ingredients’. In addition to re-launching and re-packaging our existing SuperValu Own Brand range, we have also further extended the SuperValu Rite Price value range, bringing real value to consumers across our entire family of own brand products.”

SuperValu retailers play a key economic and social role in their local communities, sourcing product from local suppliers, providing jobs through store investment and openings, and by supporting local sponsorships, initiatives and charitable causes to build vibrant local communities. In the Republic of Ireland, 75% of goods sold are either produced or sourced in Ireland, which is worth over €1.7bn at retail level.

Commenting on the outlook for 2008, Mr Horgan said; “Through partnering with our entrepreneurial retailers and meeting the needs of Irish consumers by delivering a choice of top quality products, value for money and superb customer service, we are confident that SuperValu will again make strong progress in 2008. We will continue to focus on delivering our ‘Real Food Real People’ brand position through our product offer, store design, marketing activity and our people. As part of this agenda 41 existing SuperValu stores will be revamped at an investment of €39 million, while 8 new stores at an investment of €25 million will be opened during the year. This will result in the creation of 700 new jobs across the SuperValu network. Together with our retail partners in communities across Ireland, we are committed to further enhancing our locally based offer, providing a real alternative to the multiples for Irish consumers.”

Additionally, as part of the rollout of its sustainability strategy, Musgrave Retail Partners Ireland, on behalf of its network of independent SuperValu retailers reached a number of significant milestones. A sustained focus on recycling resulted in 68% of the 27,000 tonnes of waste normally captured for landfill diverted for recycling.

Ends

For further information please contact:
Joe Carmody / Piaras Kelly Sue Lamon-Diver
Edelman Communications Manager
01 6789333 Musgrave Retail Partners
086 8058764 / 086 8131691 086 2273397
joe.carmody@edelman.com / sue.lamondiver@musgrave.ie
piaras.kelly@edelman.com