Unified Grocers Takes Over Raley's GM and HBW Operations

Unified Grocers has reached an agreement with Sacramento-based grocery chain Raley's to take over its General Merchandise/Health, Beauty and Wellness (GM and HBW) operations. The agreement includes leasing the Raley's warehouse in Stockton. Unified will become Raley's third-party provider for GM and HBW products. Under the terms of the agreement, Unified has hired all the employees who work in the facility. The warehouse is only eight miles from Unified's own Stockton facility and the partnership with Raley's provides a unique opportunity to consolidate and add additional GM and HBW volume and store supply sales volume. "We are looking forward to better serving our members from this facility, starting immediately with our newest member Haggen," said Bob Ling, President and Chief Executive Officer, Unified Grocers. "In addition, the potential is there to serve other companies from this location as well." The acquisition of the Stockton warehouse also signals a step-up in the growing wellness category for Unified's specialty subsidiary Market Centre. "Market Centre has been successful in growing its HBW sales but this agreement provides the opportunity to scale the business to become big enough to buy and distribute in a more effective way," said President of Market Centre, Joe Falvey. The addition of the Raley's Stockton warehouse will allow Unified to make the most effective use of our other fixed assets, freeing up space in our other warehouses as we look to grow the business. It will potentially benefit all our retailers as we expand our GM and HBW business and add additional products.