SUPERVALU BUYS DAVIS CHAIN; PLANS TO SELL IT TO MEMBERS

JENNIFER L. BALJKO

NEW STANTON, Pa. -- Supervalu's Northeast Region division here has acquired a three-store Pittsburgh area operator and plans to sell the supermarkets to independent retail members.

The wholesaler purchased the stores -- in Latrobe, Greensburg and Hempfield, Pa. -- from Davis Supermarkets, Greensburg, an independent that was supplied by the DuBois, Pa.-based Riverside division of Penn Traffic Co., Syracuse, N.Y. Terms of the deal were not disclosed.

As of last week, Supervalu was negotiating with some of its affiliated independents to sell the Davis stores, according to Ed Fee, area marketing director. Supervalu would supply the stores.

Ownership would be transferred to the acquiring retailers -- whom Fee declined to name -- as soon as legal matters are settled, he explained. Fee added that he did not know when any transactions were expected to close but noted that the stores, which operate under the Davis Supermarkets banner, likely would change names under new owners.

Supervalu plans to close the Davis stores for one or two weeks after a special weeklong sale that started Oct. 5. The stores will be remerchandised and undergo minor cosmetic changes during that time, the company reported. The Davis stores vary in size, from about 42,000 to 60,000 square feet, Fee said.

Selling the Davis units to independent members will help ensure the stores will continue to cater to the local customer base, according to Tom Miller, president of the Pittsburgh arm of Minneapolis-based Supervalu. "We believe independent retailers, applying their retailing expertise and merchandising savvy to these markets, will best serve the needs of the customers of these stores."

The Davis family has been in the supermarket business for more than eight decades. Owner Bob Davis, son of founder William Davis, said in a statement that it was time for him to move on. "I'm ready to take it easy and make room for the next group of entrepreneurs, who will take on the challenge and fun of supermarketing," he explained.

Supervalu's Pittsburgh-area distribution facilities supply 225 food stores. Seven of those units are corporate-owned and operate under the banners Country Market, Foodland and Shop 'n Save, Fee said.