NEWSWATCH 2001-04-02

IGA Operators to Acquire 29 Abco Stores

s in Arizona are reportedly set to acquire most of the 29 units of Abco Desert Markets here and in Tucson that Fleming, of Dallas, has put up for sale. Officials at both IGA, Chicago, and Fleming declined comment. Of the original 52 Abco locations, Fleming closed 12 and sold 11 to Safeway, Pleasanton, Calif. Fleming is selling Abco as part of its strategy to dispose of corporate-owned conventional stores so it can concentrate on price-impact Food 4 Less stores.

Supervalu to Close Kentucky Distribution Center

MINNEAPOLIS -- Supervalu here said last week it will close its 281,000-square-foot distribution center in Greenville, Ky., by the end of June. The company said the decision to close the facility came after a financial analysis indicated the projected volume and potential for growth did not support its continued operation. Volume from the Greenville facility will be transferred to Supervalu distribution centers in Champaign-Urbana, Ill.; Milton, W.Va., and other facilities, the company said, although in some cases it may have to assist retailers in finding alternative supply affiliations, it added.

Fleming Completes Sale of Baker's to Kroger

DALLAS -- Fleming here said last week it has completed the sale of 16 units of Baker's Supermarkets, Omaha, Neb., to Kroger Co., Cincinnati. It also said it has signed a three-year supply agreement with Kroger to continue supplying the Baker's stores from its Lincoln, Neb., product supply center, as previously disclosed. According to Fleming, the Baker's sale is the largest single transaction in its ongoing sale of conventional stores. Although it did not disclose the selling price, Fleming said it expects to receive approximately $200 million in proceeds this year from the sale of conventional retail stores and from retaining a significant portion of those stores' wholesale distribution. The Baker's stores were sold as part of Fleming's strategic plan to focus its growth on price-impact stores and distribution.