US: Harris Teeter, Lowe in store swap

By Katy Askew | 6 June 2012

US retailer Harris Teeter has announced a plan to swap a number of stores with fellow regional supermarket group Lowe's Food Stores as it looks to increase its exposure to urban markets.

Harris Teeter will takeover "at least" ten of Lowe's Charlotte area supermarkets. In return Lowe's will receive US$26.5m and attain six stores in smaller markets.

"This transaction aligns with our strategic plans to replace rural store locations with more urban locations with higher density of our target demographic groups," Harris Teeter CEO Thomas Dickson said on Friday (1 June).

Harris Teeter will convert nine of the outlets to its own banner and sub-lease one outlet, which is located in direct proximity to one of its existing Harris Teeter supermarkets, to another retailer.

Sectors: Mergers & acquisitions, Retail