Jewel/Osco parent to cuts 800 jobs

Jewel/Osco’s parent company, Supervalu Inc., said will eliminate 800 jobs as part of a plan to trim expenses and lower grocery prices.

Most of the reductions will occur by Feb. 25 and include cutting current jobs and leaving open positions unfilled, Minneapolis-based Supervalu said today in a statement. The company had 142,000 employees as of Feb. 26, 2011, according to a securities filing. The move affects all company offices and most departments.

In addition to Chicago-based Jewel/Osco, Supervalu owns the Albertson’s and Save-A-Lot grocery store chains.

Chief Executive Officer Craig Herkert, a former Wal-Mart Stores Inc. executive who took charge in 2009, has focused on lowering prices amid competition from discount and dollar store chains.

The cost cuts will also generate capital to help pay for an expansion of Supervalu’s Save-A-Lot discount grocery chain and wholesale distribution to more than 2,000 independent retailers, according to the statement.