Save A Lot sells 51 stores to Fresh Encounter
Save A Lot continues its transformation to a wholesaler.
The discount grocery chain announced the sale of its 51 company-operated stores in the Tampa, Florida market to Ohio-based Fresh Encounter, a current Save A Lot retail partner licensee. Fresh Encounter will continue to operate the stores under the Save A Lot banner. (Fresh Encounter operates 61 stores in Ohio, Kentucky, and Indiana under various banners, including Save A Lot, Great Scot, Community Markets, and more.)
The sale, whose financial terms were not disclosed, is part of an ongoing re-licensing program through which Save A Lot intends to transition to a wholesale model by selling more than 300 corporate-operated locations to new and existing retail partners. The partners will continue to operate the stores under the Save A Lot banner.
In addition, Save A Lot said it will continue to operate 21 corporate stores locally in St. Louis, where it will develop and launch new innovations as a testing ground to help its retail partners succeed in their individual communities across the country.
To date, Save A Lot has executed seven sale transactions, comprising 82 stores, including those being sold to Fresh Encounter. With multiple sale transactions near completion, the company expects to complete its re-licensing program in 2021.
With 1,000 stores in 33 states and 14 wholesale distribution centers, Save A Lot serves as a licensor and wholesale partner to more than 200 independent owners and operators. Owners are able to customize their assortment to cater to the tastes and preferences of their local customers.
“Through the re-licensing transactions we are executing across our footprint, we believe that we will be even better positioned to continue to serve the communities in which we operate,” stated Kenneth McGrath, CEO, Save A Lot. “We currently have a dedicated group of retail partners that we support and we look forward to helping other entrepreneurs own, operate and succeed in their own business.”