US discount grocer SuperValu intends to more than double store numbers at its Save-A-Lot chain.
The retailer has 1,100 Save-A-Lot stores at present, 25 per cent of which are company-owned and the remainder run by licensees. A timetable for the expansion programme has not been disclosed.
Broker Deutsche Bank flagged up the expansion plans in a note, and stated: 'Save-A-Lot will be (SuperValu's) main growth vehicle going forward. We believe that its target (to operate 2,500 stores) is clearly achievable, as it would imply that hard discount stores could capture up to 3.5 per cent market share in grocery, which we see as a realistic target.'
SuperValu generates sales of US$21 billion (£13.18 billion) a year and acquired Save-A-Lot in 1992.