Shaw's Supermarkets to Cut 700 Jobs

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Supervalu is cutting 700 positions at grocery stores at a subsidiary in New England, two weeks after it posted a loss for the second quarter and said it was considering selling the company.

The company says the job cuts will take place at 169 Shaw's and Star Market stores. Shaw's, with about 17,000 staffers, is one of the oldest supermarkets in the U.S., dating back to the 1860s.

Supervalu, based in Eden Prairie, Minnesota, fired its CEO in July after closing stores and suspending its dividend.

Competition has grown exceedingly intense and grocers are being forced to cut prices to keep cash-strapped customers from switching to competitors as they look for bargains.

Supervalu has about 125,000 employees overall.