Discount retailer Save A Lot, one of the largest grocery chains in the U.S., has announced a major change to its business model. The company has announced the completion of its ongoing relicensing program, and will now shift to a wholesale model.
The move follows the appointment of Save A Lot’s new CEO, Leon Bergmann. Save A Lot has a collection of 55 private brands, and earned honors from Store Brands for its “Like, A Lot A Lot” ad campaign last year.
“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 vice president and chief financial officer. “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.”
The relicensing move builds on Save A Lot’s ongoing efforts to modernize, working with its independent license owners to remodel all stores by 2024. The company says the new store design reflects the “contemporary evolution” of the brand with a lighter, brighter and easier-to-shop footprint that includes new décor and an enhanced shopping environment. In 2021, 200 Save A Lot remodels were completed. The chain currently operates around 900 stores in 32 states.
“Save A Lot’s momentum is built through our strong retail partner network, whose commitment to our brand and the consumer that we serve is unmatched in the industry,” Hutchens said. “We are proud to share our success with these dedicated owners who are incredibly passionate about providing the best Save A Lot experience to their neighborhood customers."