Supervalu Inc. reported Tuesday that its first-quarter net income rose 10 percent as a turnaround launched more than a year ago began to pay off.The grocery chain is bringing in new management, cutting costs and closing some stores. It also shifted its emphasis to more stores that better serve their local needs and an expansion of its low-cost Save-A-Lot brand.CEO Craig Herkert talked about the changes during a conference call with investors.QUESTION: So when you reported earnings for the last quarter, you said that you were disappointed with the top line. I would say your tone definitely seems more enthused this quarter. Can you maybe talk about the key driver, or drivers if you will, that are leading to the difference in terms of tone and obviously save a lot had a very nice performance in the quarter.HERKERT: Well, I think a lot of it is because we're executing against the plan that we told you about last quarter and we told you about the investor day. ... Everything we're doing is what we said we are going to do to address our relevance with the consumer and, quite frankly, I feel good about how our team is executing against it. If there was a single thing I would point to, to say what mattered, it was really embracing this hyper-local thing and what our store directors and our store teams and department managers have done to really get after this.
- Supervalu Inc.