Transforming SUPERVALU by Exploiting Scale and Becoming Hyperlocal

To turn itself around, SUPERVALU, a major U.S. grocery chain that had been underperforming its sector since 2007, developed a strategy that combined two seemingly contradictory goals: to take advantage of its scale as the third largest grocery chain in the U.S., and at the same time better utilize the local knowledge of its 1,100 store directors and frontline employees. This case describes how SUPERVALU, with retail, hard-discount, and wholesale lines of business, implemented this strategy in its retail operations by focusing on three areas: centralizing processes and creating shared tools, creating a culture of sharing, and empowering store directors.