Dutch retail giant Ahold has moved to expand its business in the US with a deal to buy 16 Genuardi’s stores from Safeway Inc.
Ahold has agreed to pay US$106m for the outlets in Greater Philadelphia, where it already runs its Giant Food Stores chain.
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The deal is expected to be finalised in the first half of the year and Ahold plans to convert the Genuardi’s stores to its Giant Food Stores banner.
Ahold said the acquisition “fits well” with the expansion strategy it outlined in November. CEO Dick Boer said Ahold would look to expand in and adjacent to its current markets in the US and Europe and said he believed that opportunities would arise the longer the economic downturn continued.
The sale marks Safeway’s departure from Greater Philadelphia. As well as the stores it is selling to Ahold, Safeway plans to close three other Genuardi outlets and offload eight others. Safeway said it was “working with potential buyers” of the eight stores it plans to sell.
“We have made the decision to exit the greater Philadelphia market, including four stores in New Jersey, and focus our resources in those operating areas where we have a stronger presence,” Steve Neibergall, president of Safeway’s Eastern division, said.
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