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Inventories at U.S. wholesalers rose 0.1 percent following a 1.2 percent revised gain in October, Commerce Department figures showed today in Washington.

But it saddled the company with a lot of debt, and a tanking economy and intensifying competition from discounters such as Wal-Mart increasingly took their toll.

Herkert's departure comes less than three weeks after the company, owner of Cub Foods and one of the largest U.S. grocery operators, put itself up for sale and announced other strategic moves.

Jain wrote that it is "increasingly likely that some type of break up of the integrated business is likely and will result in some asset disposals."

But it saddled the company with a lot of debt, and a tanking economy and intensifying competition from discounters such as Wal-Mart increasingly took their toll.

Inventories at U.S. wholesalers rose 0.1 percent following a 1.2 percent revised gain in October, Commerce Department figures showed today in Washington.

But he was encouraged by recent board actions -- including a key debt refinancing and $250 million in operational cost cuts -- that would allow him to accelerate Supervalu's price-cutting initiative.

The fact that Sales, "whose background is in other areas of retail, but comprises some turnaround experience, assumed the role of CEO implies that this move is temporary and strategic in nature," wrote Jonathan Feeney, a stock analyst at Janney Capital Markets.

Taking on debt

Supervalu is looking to possibly break up what was created in 2006 by Herkert's predecessor, Jeff Noddle, when he engineered the $12 billion acquisition of Albertsons.

Supervalu didn't have the resources to adequately freshen up its stores or reduce a sizable price gap with competitors, aalysts say.

Taking on debt

Supervalu is looking to possibly break up what was created in 2006 by Herkert's predecessor, Jeff Noddle, when he engineered the $12 billion acquisition of Albertsons.

Janney's Feeney wrote that "some of Herkert's numerous turnaround efforts had strategic merit," ... but "Herkert's policies essentially nipped around the edges of [Supervalu's] inherent competitive disadvantages."

But the board apparently didn't see Herkert, 52, as the right person to execute the strategy.

Supervalu abruptly ousted Chief Executive Craig Herkert on Monday, three years into his unsuccessful effort to turn around the lumbering grocery giant with deep Minnesota roots.

"While this move alone doesn't inspire confidence, it removes a key perceived hurdle in the company's review of strategic options."

Jain said Herkert's exit was "somewhat inevitable," given Supervalu's recent terrible financial performance, and the decline in its stock to 30-year lows.

"While this move alone doesn't inspire confidence, it removes a key perceived hurdle in the company's review of strategic options."

Janney's Feeney wrote that "some of Herkert's numerous turnaround efforts had strategic merit," ... but "Herkert's policies essentially nipped around the edges of [Supervalu's] inherent competitive disadvantages."