Supervalu has completed the sale of 21 of its 38 Farm Fresh stores to three different retailers: Harris Teeter, Kroger Mid-Atlantic division and Food Lion.
The company said it is continuing to pursue the sale of several remaining Farm Fresh stores to current and prospective wholesale customers. The three deals are for approximately $43 million in cash. Ten stores are being sold to Harris Teeter, including six in-store pharmacies and three fuel centers; eight stores are being sold to Kroger Mid-Atlantic division, including eight in-store pharmacies and four fuel centers; and three stores are being sold to Food Lion, including three in-store pharmacies.
Mark Gross, Supervalu’s president and CEO, said, “Every day we’re working to continue the rapid transformation of our business, and the exit from our Farm Fresh banner is another step forward in becoming the grocery supplier of choice for retailers across the country. Exiting the Farm Fresh banner will enable us to allocate greater resources and energy toward the strategic growth of our wholesale business. We also continue to aggressively pursue other important initiatives, including the monetization of real estate through sale lease back transactions and cost reduction across the company. We are confident our efforts are driving growth and enhancing our competitive position.”