Newswatch 2009-06-08

NIEMANN TO ACQUIRE C-STORE CHAIN

QUINCY, Ill. — Niemann Foods has agreed to acquire 16 convenience stores operating under the Pick-A-Dilly banner from Big River Oil, Hannibal, Mo., the retailer here said last week. Niemann, which operates supermarkets under the County Market and Save-a-Lot banners and 12 convenience stores under the County Market Express banner, said it would continue to operate the stores under their current banners and that Big River would continue to provide fuel at the stores. A purchase price was not disclosed for the acquisition, which is expected to close next month.

ALDI PLANS NEW GEORGIA WAREHOUSE

BATAVIA, Ill. — Discounter Aldi here is reportedly looking to build a 789,000-square-foot warehouse in Georgia. The Atlanta Business Chronicle, citing filings the discounter made with the state, last week said Aldi plans to build the facility in Jefferson, Ga. Aldi currently operates 20 stores in the Atlanta market serviced from a DC in Salisbury, N.C.

VILLAGE POSTS SALES GAINS IN Q3

SPRINGFIELD, N.J. — Consumers shopped often, but shopped cautiously during the fiscal third quarter at stores operated by Village Super Market, the retailer here said last week. Village operates 26 ShopRite stores in Pennsylvania and New Jersey. For the quarter ending April 25, Village reported net income of $6.3 million on sales of $293.5 million. Net earnings were up by 27% as compared with the same period last year, mainly as the result of a 7.3% increase in sales and greater cost leverage. Same-store sales improved by 7.3%. However, gross profits as a percentage of sales fell by 35 basis points as promotions increased and cautious consumers spent more on sale items.

WASHINGTON UNIONS OK MERGER

SEATTLE — United Food and Commercial Workers Locals 21 and 44 have agreed to a merger. The combination, which will operate as Local 21, based here, creates a 35,000-member organization and will increase bargaining power with employers, according to a statement from Mike Hatfield, who served as president of Local 44 and will advise the combined group.

LOSSES INCREASE AT PLANET ORGANIC

EDMONTON, Alberta — Natural-food store operator Planet Organic here last week said revenues for the fiscal third quarter increased by 11.5%, but losses accelerated as its stores in the U.S. and Canada saw negative same-store sales growth. The company, which operates 60 stores in Canada and 11 in the United States, including the Planet Organic and Mrs. Green's Natural Market banners, reported a loss of $1.1 million (U.S.) on total sales of about $30.6 million for the quarter, which ended March 31.

NYC GROCERS TO PAY BACK WAGES

NEW YORK — Six supermarkets here have agreed to pay more than $300,000 in back wages to baggers after an investigation by the state Department of Labor, the DOL said. Two other supermarkets are in negotiations to pay an estimated additional $400,000 for wage violations. The six supermarkets that have settled did not pay the baggers any wages at all while they were working and instead allowed them to collect tips, according to the DOL.