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Supervalu (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”


SUPERVALU is a grocery and pharmacy retailer. The company has a strong market position in grocery retailing with approximately 2,500 retail grocery locations across the US. The company operates its retail stores under banners such as Albertsons, Save-A-Lot, Shaw’s Supermarkets, Jewel-Osco, Acme Markets, and Shoppers Food & Pharmacy. The retail banners of the companyare either the leaders or are the second rankers in terms of market positions in the markets they operate. Strong market position provides stability to the company's revenue stream and enables itto face competition effectively. However, increasing competition could put pressure on the company’s margins and lead to a loss of market share.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor






  • Strategic acquisition of New Albertsons
  • Reduction of debt
  • Varied retail formats
  • Strong supply chain capabilities


  • Product recalls
  • Weak turnover ratios



  • New brand
  • Increasing demand for organic products
  • Growing demand for private label products
  • Increasing online sales


  • Increasing competition
  • Rising labor wages in the US
  • Soaring consumer price
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"Supervalu (SWOT Analysis)";