Leevers Acquires 17 Save A Lot Stores Around Philadelphia
Quiet corporate relicensing, renovation program continues. The family-owned Colorado independent crosses the country to double its size and further diversify as Save A Lot's wholesale transition quietly continues.
Save A Lot’s transition from a retailer to a wholesaler has quietly generated another significant deal, as Colorado-based independent licensee Leevers Supermarkets crossed the country to acquire 17 stores in the Philadelphia market, WGB has learned.
The stores were formerly owned by Save A Lot’s St. Louis-based corporate arm, which since its recapitalization last year, has been looking for existing or new licensees to take over all but a small handful of owned stores in its home market. To date, Save A Lot has executed 12 transactions comprising 132 stores, “with more on the horizon,” a spokeswoman says—but the private company has not announced all of them. Save A Lot has indicated it expects its 300-plus store relicensing program to be complete by the end of the year. That would leave a chain of a little more than 1,000 discount stores, with all but 21 owned by independents. These operators are provided wholesale goods and various field support by Save A Lot, which is retaining a base of stores in St. Louis to serve in part as test labs.
Franktown, Colo.-based Leevers is a family-owned chain operating 17 Save A Lot stores, one Colorado Ranch Market, and a newly opened concept called Leevers Locavore in its home state. Chairman and CEO John Leevers in an interview with WGB this week confirmed his company had recently completed the deal for the Philadelphia-area stores, essentially doubling its size. A press announcement was awaiting details of the transition and forthcoming store renovation program at the units, but Leevers for about a month has been in the process of recruiting employees at the units. The company also took on existing local managers and staff who previously reported to Save A Lot. Further financial details have not been disclosed.
That’s not Save A Lot’s only activity in the region. A separate licensee known as Save Philly Stores has taken another chunk of Save A Lots in the wider region—11 units stretching from Wilmington, Del., to Atlantic City, N.J., to Harrisburg and York, Pa.—but its officials have not responded to WGB’s requests for more detail, and it is not clear whether all of those stores were corporate transfers.
How It Should Be
Leevers said the opportunity to take over in Philadelphia made sense given the company’s ambitions to grow, its confidence in its ability to effectively cater to local shoppers as demonstrated in its home markets, a turnkey transition with proven volumes and customers in a format with which it was already familiar, and stores in a tight geographical radius.
“It was a combination of our interest to grow and diversify, and Save A Lot’s stated intention to become a world-class wholesaler, so it worked out on both sides,” Leevers said.
In Colorado, Leevers has primarily operated Save A Lot stores serving Hispanic populations. The mix in and around Philadelphia—including several in city neighborhoods but also stores in nearby Pennsauken and Ewing Township, N.J.—is more diverse. Leevers said Save A Lot is allowing independent operators more flexibility to buy to meet neighborhoods than it might have a few years ago.