Save A Lot sells 51 stores to Fresh Encounter
Discount grocer Save A Lot is making big strides in its transition to a wholesale model. The St. Louis-based company, which offers a wide private brand assortment, has sold 51 of its company-operated stores in Tampa, Fla., to Save A Lot licensee Fresh Encounter, which will continue to operate the stores under the Save A Lot banner.
“We are excited to expand our partnership with Michael Needler and the Fresh Encounter team, who have been fantastic partners, strong operators and excellent ambassadors of the Save A Lot brand,” said Kenneth McGrath, Chief Executive Officer at Save A Lot. “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. 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.”
The sale, whose terms were not disclosed, is part of Save A Lot’s efforts to sell off more than 300 corporate-operated stores to new and existing retail partners who will operate them under the Save A Lot banner. The company plans to keep 21 stores in St. Louis under corporate control, using them to develop and launch innovations. So far, the company has sold 82 locations in seven transactions, including the Fresh Encounter sale. Currently, the company is a licensor and wholesale partner to more than 200 independent owners and operators, with 1,000 stores in 33 states and 14 wholesale distribution centers. Owners are able to customize their assortment to cater to local preferences and needs.
“The Fresh Encounter family of companies has a culture that prioritizes being positive, appreciative and resilient and we are eager to onboard the new Florida associates. Over the past several months I have toured stores in the greater Tampa market and I’m impressed with the Save A Lot team,” said Michael Needler Jr, president and CEO of Fresh Encounter. “I am truly humbled to be joining them in delighting our customers, nourishing the communities and inspiring pride in the team. Kenneth and Kevin Proctor and the rest of the Save A Lot corporate team are transformative and we are equally eager to join their efforts in re-establishing the Save A Lot brand for tomorrow’s competitive environment.”