Save A Lot has completed its relicensing program and transition to a pure-play wholesale model following the sale of almost 300 corporate-operated locations to retail partners who will continue to operate the stores under its namesake banner, the company reported.
The completion of the transition comes as Save-A-Lot’s recently appointed CEO Leon Bergmann prepared to join the company on February 21.
All told, Save A Lot completed 34 transactions by selling corporate-operated locations to local operating groups, it stated. Companies taking ownership of the stores include a number of existing Save A Lot retailers including Fresh Encounter, the Janes Group, Leevers Supermarkets and Save Philly Stores, who added 51, 18, 17 and 14 stores, respectively, to their portfolios. Save A Lot also welcomed 15 new ownership groups, including Yellow Banana, a portfolio company of 127 Wall Holdings, which purchased 38 stores across five states and Ascend Grocery, which purchased 33 locations in Florida. Save A Lot retains 18 stores in its home market of St. Louis as test locations for innovations and new programs, the company noted.
“Becoming a wholesaler was an important step in Save A Lot’s mission to lead as the brand of choice for value-oriented consumers, putting the company on an entirely new financial trajectory,” said Mark Hutchens, executive vp and CFO, in announcing the transition’s completion. “Since its inception, Save A Lot has filled an important need as an affordable, high-quality hometown grocer in each community it serves. This relicensing program positions our company to better serve our retail partners as they support their customers and communities. We’ve entered 2022 with strong momentum and improved financials that will help fuel the growth of the business in the years ahead.”
Save-A-Lot operates about 900 stores in 32 of the United States.
