BI-LO Restructures Distribution, IT

Greenville, S.C., BI-LO Holdings LLC will outsource distribution functions and consolidate corporate-support functions as part of a repositioning plan.

BI-LO tapped Keene, N.H.-based C&S Wholesale Grocers to handle its distribution. As part of the arrangement, C&S will buy BI-LO DCs in Mauldin, S.C.; Chattanooga, Tenn.; and Birmingham, Ala., for an undisclosed sum. The three facilities support more than 450 supermarkets under the BI-LO and Bruno's brand names. All 1,650 employees at the three DCs will be offered positions with C&S. The transition is expected to finish by mid-year.

BI-LO president and CEO Dan Cohagan said that the deal will enable the grocer to focus on its core retailing operations and free up capital to reinvest in store development and systems.

The grocer also will consolidate the corporate-support functions of its BI-LO and Bruno's divisions. Many of Bruno's support functions will be integrated into BI-LO's Mauldin office. Functions to be consolidated include finance and accounting; merchandising and marketing; risk management; legal; and IT. Bruno's real estate, maintenance, sales, loss-prevention, pharmacy and community relations functions will remain at Bruno's division headquarters in Birmingham.

The consolidation, which will affect 175 positions at Bruno's headquarters, will complete in the third quarter.