LUBBOCK, Texas -- United Supermarkets here, operator of 38 stores in Texas, said last week it plans to begin self-distribution by June 2000.
The move represents further U.S. penetration for Tibbett & Britten Group, the third-party logistics specialist that will build, own and operate United's new distribution facility; it also marks the loss of another large customer for Fleming Cos., Oklahoma City.
United said the new facility, a 485,000-square-foot distribution center here, will be run by Llano Logistics, a member company of London-based TBG, which operates in 22 countries, with North American headquarters in Toronto.
According to Kent Moore, United's senior vice president and chief executive officer, "Tibbett & Britten Group has developed a reputation for being the premier logistics-services provider worldwide, and we are pleased to be able to bring their distribution expertise to our market area while allowing United to focus our efforts on performance at the retail level.
"We feel our customers will benefit the most as self-distribution will better enable us to provide them with the products they want at the lowest possible cost, [using] state-of-the-art technology and a more direct partnership with our vendors."
TBG already operates distribution centers for Safeway, Pleasanton, Calif., in Canada and Tracy, Calif., and for Cincinnati-based Kroger Co. in its Nashville marketing area, and it is running the distribution center that Furr's Supermarkets, Albuquerque, N.M., opened in October.
TBG has also been running distribution centers for Oshawa, Etobicoke, Ontario, since 1996, although the company said in December those contracts will be canceled in about a year, following a warehouse consolidation, and it was hired last year by Spartan Stores, Grand Rapids, Mich., to own and operate a new distribution facility being built in northern Ohio -- for the wholesaler's eastern Michigan customers -- that is scheduled to open early next year.
Sales volume at United's 38 stores is estimated to be $515 million. The company said it has three additional stores under construction.
The stores are currently being supplied by Fleming's warehouse here. Fleming officials could not be reached for comment last week.
Pending the loss of United's business, Fleming will lose its largest retail customer in August when Randall's Food Markets, Houston, is scheduled to begin self-distributing.
Fleming lost its second-largest customer in October when Furr's Supermarkets, Albuquerque, began self-distributing, although it continues to buy general merchandise and HBC from Fleming.
Furr's is using a former Fleming facility in El Paso, Texas, which is being operated for the chain by Pinnacle Logistics, a TBG company; Pinnacle also provides all warehouse equipment and transportation services.
United was founded in 1917 in Sayre, Okla., by H.D. Snell Sr.; in 1946 it was divided into two companies.
