Shakeup At Jewel Parent Company Could Cut Grocery Prices
ITASCA, Ill. (CBS) -- A shake-up in the executive office may mean lower prices at Jewel-Osco.
As WBBM Newsradio's Kris Kridel reports, Jewel-Osco's parent company, Supervalu, has ousted its chief executive officer, Craig Herkert, after the grocery chain reported lackluster quarterly results.
Supervalu and other companies have been losing business to big-box retailers and drugstores. Both Wal-Mart and Walgreens are making inroads in the grocery market just within the city of Chicago.
A dozen years ago, traditional supermarkets accounted for 66 percent of grocery sales. Now, that figure has dropped to 51 percent.
Analysts say it is possible for Supervalu will put itself up for sale, and also probable that it will cut corporate costs, as well as grocery prices.
Itasca-based Jewel-Osco was an independent company until 1999, when it was purchased by Albertson's. In 2006, shareholders approved the breakup of Albertson's and handed Jewel stores over to Supervalu.
LISTEN: WBBM Newsradio's Kris Kridel reports
