Parent of Smart & Final, El Super, Fiesta Mart plots growth, remodels, new DC
The fourth largest grocery retailer in California is growing its store footprint and distribution capabilities.
Chedraui USA, the parent company of El Super, Smart & Final, and Fiesta Mart stores, plans to open two new El Super stores in 2023, with locations in Las Vegas and San Ysidro, Calif. Also opening this year will be three new Smart & Final locations in the California cities of Madera, Lompoc and Lancaste.
Chedraui USA is a subsidiary of Grupo Comercial Chedraui, the third-largest retailer in Mexico. The company acquired Smart & Final in 2021, for approximately $620 million.
In addition, the company said it plans to remodel at least 40 existing stores to offer new benefits to customers.
In other investments, Chedraui USA plans to develop a 1.4 million-sq.-ft. next-generation distribution facility in Rancho Cucamonga, Calif. The center will increase the company’s current Southern California distribution and warehouse capacity by 50%. The increased capacity will maintain high levels of product quality and service to El Super and Smart & Final stores by re-tooling the distribution network, the company said.
The new Rancho Cucamonga facility will integrate distribution operations from five smaller Southern California warehouses, adding significant space to support sales growth and the development of new stores. The company anticipates that the new facility will add a significant number of new jobs to its distribution workforce, along with additional career growth opportunities, while dramatically reducing the amount of fuel consumed on Southern California roads through significant route integration.
“Our El Super and Smart & Final stores offer customers among the best variety and value in our markets, and we’ve had many requests to bring additional stores to new communities,” said Carlos Smith, CEO of Chedraui USA. “We’re excited to respond with five new stores in 2023, and the commitment to a new integrated distribution center to help us grow and maintain low prices for our customers, for years to come.”
Chedraui USA is based in Los Angeles and is the fourth largest grocery retailer in California, with 376 locations in California, Nevada, Arizona, New Mexico and Texas. It is a subsidiary of Grupo Comercial Chedraui based in Mexico.