NEWS WATCH: GROCERY OUTLET EXITS TEXAS, LA., AFTER LESS THAN A YEAR...EBAY TO IMPLEMENT NEW COUPON RESALE POLICIES...WAL-MART WINS ONE, LOSES ONE IN CALIFORNIA VOTING

GROCERY OUTLET EXITS TEXAS, LA., AFTER LESS THAN A YEAR

aid it would shutter its 17-store operations in Texas and Louisiana. The chain had acquired the stores last year from Fleming Cos., Dallas, which had operated them under the Yes!Less banner. John Wylie, vice president, Grocery Outlet, told SN last week that the stores were taking resources away from the company's core West Coast operations. Grocery Outlet operates 118 stores offering deep-discount groceries in California and seven other Western states. Wylie said Grocery Outlet would also close two distribution centers used to supply the Texas and Louisiana stores.

EBAY TO IMPLEMENT NEW COUPON RESALE POLICIES

WASHINGTON -- In an attempt to curb online coupon fraud, Grocery Manufacturers of America and Food Marketing Institute, both based here, said eBay, San Jose, Calif., has agreed to implement new resale policies for its online marketplace. The new rules ban the sale of more than 20 coupons for the same product and the sale of expired coupons unless they are old and have become collectibles. "We wanted to meet with eBay to see how we could work together to try to minimize the potential for fraud for [Internet] distribution of coupons," Michael Diegel, GMA's director of communications, told SN. Last August, a sudden spike in the circulation of fraudulent Internet coupons in the Southeast prompted a number of retailers to refuse them.

WAL-MART WINS ONE, LOSES ONE IN CALIFORNIA VOTING

BENTONVILLE, Ark. -- Wal-Mart Stores here won one and lost one in last week's voting in California. In Contra Costa County, voters defeated a measure that would have prevented the operation of non-membership stores of more than 90,000 square feet that devoted more than 5% of their floor space to sales tax-exempt goods. The vote was 97,699 (46.2%) in favor of the proposition and 113,747 (53.8%) against. Meanwhile, in San Marcos, a city of about 64,000 approximately 30 miles north of San Diego, voters defeated a proposition that would have rezoned a 20-acre residential area to permit the building of a Wal-Mart discount store. The vote was 4,781 (39.6%) in favor of the proposition and 7,304 (60.4%) against.

UFCW'S DORITY RETIRES; UNION NAMES HANSEN PRESIDENT

WASHINGTON -- The United Food and Commercial Workers Union International here said last week it has named Joe Hansen, the UFCW's secretary-treasurer since 1997, as president. Hansen succeeds Doug Dority, the union's president since 1994, who delayed his previously scheduled January retirement until the Southern California labor dispute was resolved. The UFCW also named Anthony Perrone, currently its executive vice president and international director of organizing, to succeed Hansen as secretary-treasurer; William McDonough, currently vice president and Region 8 director, as executive vice president; and Michael Fraser, currently vice president and Canadian national director, as executive vice president.

SAFEWAY TO BUILD NEW WAREHOUSE IN WASHINGTON STATE

PLEASANTON, Calif. -- Safeway here is planning to build a 1.2 million-square-foot distribution center in Auburn, Wash., a town about 30 miles south of Seattle, according to the general contractor for the project, Turner Construction, New York. Turner said the $95 million distribution center will consist of 10 buildings, including a refrigeration warehouse, grocery warehouse, recycling center and truck maintenance garage, as well as administrative, office and support buildings. The builder said the project is scheduled for completion in March 2005.

A&P COMPLETES $170 MILLION SALE/LEASEBACK

MONTVALE, N.J. -- A&P here said late last month it completed a real estate sale/leaseback transaction with Cardinal Capital Partners, Dallas. The retailer said the transaction, executed at a cap rate of approximately 9%, will result in proceeds of about $170 million.