Is SUPERVALU's Pain Wal-Mart's Gain?
SUPERVALU's (NYS: SVU) enormous crash thus far this year stands in contrast to Wal-Mart's (NYS: WMT) new all-time highs. While it may seem strange to mention a broadline retailer like Wal-Mart in the same breath as a pure grocery play like SUPERVALU, in fact Wal-Mart is the largest grocery retailer in the United States and continues to strengthen its position with superior supply-chain management and economies of scale. Savvy investors will look to Safeway and Kroger with a cautious eye, wondering whether Supervalu's troubles are the canary in the coal mine for other grocers. Austin admits he will be watching competitors' same-store sales with particular interest going forward.
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The article Is SUPERVALU's Pain Wal-Mart's Gain? originally appeared on Fool.com.Austin Smith and The Motley Fool own shares of SUPERVALU. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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