Newswatch 2010-05-31

WAL-MART'S ASDA BUYS NETTO STORES

LONDON — Asda, the United Kingdom division of Wal-Mart Stores, last week said it agreed to purchase Netto Foodstores, the U.K. division of Danish retailer Dansk Supermarked, for about $1.1 billion. Netto operates 193 limited-assortment discount stores in the U.K., with an average size of 8,000 square feet. Asda said it would convert the stores to the Asda banner by next year and would operate them in its “new supermarkets” division of stores smaller than 25,000 square feet.

NASH FINCH CONSOLIDATES WAREHOUSES

MINNEAPOLIS — Nash Finch Co. here last week said it has completed a significant expansion of one distribution center in Lima, Ohio, and it will shutter another facility in Bridgeport, Mich. The expansion of the Lima depot, which was begun in August last year, “effectively doubles” the freezer capacity at the facility, and will enable it to triple the volume of frozen food shipped from the location, the company said. Customers of the Bridgeport warehouse, which has been operated by Nash Finch since 1996, will be transitioned to the Lima depot. Nash Finch said it expects to completely exit the Bridgeport facility by late September.

STRIKING SHAW'S WORKERS MARCH

METHUEN, Mass. — About 80 striking workers from Shaw's warehouse trekked 60 miles to Boston last week to protest their contract disagreement with the chain, according to local reports. The five-day march comes after about 300 workers, members of United Food and Commercial Workers Local 791, walked off the job March 7 when they say Shaw's, owned by Minneapolis-based Supervalu, sought a new contract that would have required them to contribute more to their health insurance coverage. Shaw's has since canceled the health insurance of the striking workers.

SHOPRITE PLANS 8TH MARYLAND STORE

KEASBEY, N.J. — ShopRite will open its first location in Anne Arundel County, Md., later this year, according to Wakefern Food Corp. here, the ShopRite cooperative. The store, which will be operated by Collins Family Markets, a Wakefern member based in Philadelphia, will be the eighth ShopRite in Maryland. ShopRite entered the state in 2009 when Forest Hill, Md.-based Klein's Family Markets joined the co-op and switched to the ShopRite banner at its seven stores in the Baltimore area.

KROGER WORKERS OK DALLAS CONTRACT

DALLAS — Workers at 90 Kroger stores in the Dallas area have voted to approve a new contract, the retailer said last week. The new agreement covers 8,000 workers represented by United Food and Commercial Workers Local 1000 here. The new contract holds the line on health care costs, increases company pension contributions, and includes pay raises up to $1.71 an hour over the course of the contract, the union said.

PLANET ORGANIC TO SELL TO CREDITOR

EDMONTON, Alberta — Planet Organic will seek court approval to sell all its assets to Catalyst Capital Group in exchange for forgiveness of its debts, the company said. The retailer here filed for protection under Canada's Companies Credits Arrangement Act last month after it defaulted on more than $31 million in loan debt to Catalyst. Planet Organic said it would work with Catalyst to restructure its financial affairs, and that the event would not affect operations at its Planet Organic stores in Canada and Mrs. Green's in the U.S.