Bi-Lo Holdings, the parent company of US supermarket chains Bi-Lo and Bruno’s, has announced that it is transferring ownership of its warehouse facilities and management of its distribution and replenishment functions to C&S Wholesale Grocers.

The company said the move was part of its new business plan, which is designed to position the supermarket businesses, formerly owned by Dutch retailer Ahold, for long-term success.

Bi-Lo said it will also begin integrating Bruno’s information technology systems with Bi-Lo’s systems, and plans to consolidate the corporate support functions of both chains at Bi-Lo’s headquarters in Mauldin, South Carolina.

“After a careful and comprehensive analysis of our business performance and future prospects, we have developed a plan that is designed to make our company more efficient by reducing costs and more responsive by simplifying the way we do business. The plan is also aimed at focusing our efforts and resources more sharply on what we do best – operating great supermarkets and providing exceptional customer service,” said Dean Cohagan, president and CEO of Bi-Lo and Bruno’s.

Under the distribution agreement, C&S will purchase Bi-Lo’s distribution centres in Mauldin, South Carolina, and Chattanooga, Tennessee, as well as a third centre in Birmingham, Alabama that primarily services the Bruno’s chain.