The US retailer Supervalu saw its fourth quarter income plunged by 93 per cent to $6 million, while sales were down 1.1 per cent to $4.6 billion. The decline was due to the $72.4 million Supervalu spent in the quarter ended February 25 to close some of its stores ahead of its planned purchase of Albertson’s.

Supervalu will pay about $6.3 billion in stock and cash and absorb around $6.1 billion in Albertson's debt. Earnings for the full year 2006 dropped by 47 per cent to $206.2 million from a profit of $385.8 million recorded in 2005. Annual sales rose $1.6 per cent to $19.9 billion. “Fiscal year 2006 was the year we mapped out our vision for the future, invested in our business and then focused our energies on the activities necessary to effectively combine our operations with the premier retail properties of Albertson's,” said Supervalu CEO Jeff Noddle. Noddle also said the retailer is now working on aligning the infrastructure and management teams of Supervalu and Albertson’s. According to Noddle, 10 transition teams are working to identify how to leverage best practices across the group.