Amid a leadership shakeup, Supervalu Inc. said Wednesday that it plans to create a new health and wellness division.

Supervalu, health and wellness division, pharmacy, health and beauty aids, Duncan MacNaughton, Craig Herkert, supermarket, food and drug, Pete Van Helden, Pamela Knous, Kevin Tripp, Mike Jackson, Russell Redman

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Supervalu to form new health and wellness division

July 8th, 2009

MINNEAPOLIS – Amid a leadership shakeup, Supervalu Inc. said Wednesday that it plans to create a new health and wellness division.

The nation's No. 2 supermarket company said the new division will enable it to better coordinate its pharmacy and health and beauty aids (H&BA) businesses. 

In addition, Supervalu said the move will allow the company to devise a "total health and wellness experience" for customers.

Duncan MacNaughton, executive vice president of merchandising and marketing, has been named to head the new division.

Supervalu, with roughly 900 food and drug combo stores among its more than 2,400 supermarkets, had overall retail sales of nearly $34.7 billion for its 2009 fiscal year, including pharmacy revenue of $2.70 billion and H&BA/general merchandise sales of $2.74 billion. 

The announcement of the new division came as Supervalu unveiled key leadership changes as part of a realignment of retail operations, with the aim of becoming more customer-focused.

Plans call for Mike Jackson, president and chief operating officer, and Kevin Tripp, executive vice president and president of the company’s Retail Midwest region, to retire effective August 14. Both are 55 years old and have been with the company for more than 30 years.

After their departures, Supervalu said, the company will revamp its leadership structure. Former Wal-Mart Stores executive Craig Herkert, who joined Supervalu in May as chief executive officer, taking the reins from chairman Jeff Noddle, will add the role of president.

Also, Supervalu’s three retail regions will be combined under Pete Van Helden, who will become executive vice president of retail operations. He now serves as executive vice president, Retail West. The Save-A-Lot banner will report to Herkert, and Bristol Farms will continue to report to Pamela Knous, executive vice president and chief financial officer.

According to Supervalu, the new leadership structure will foster cohesion between its retail operations, pharmacy operations, and merchandising and marketing groups to enable the company to more nimbly respond to customers' changing needs.

"This is another critical step in the implementation of our centrally led merchandising model, designed to fully leverage Supervalu's scale while preserving our local relevance," Herkert said in a statement. "Pete and Duncan will work closely together to ensure a smooth and effective transition." 

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