US distribution giant Fleming has signed a definitive agreement to acquire seven Dallas-area Super1Foods stores.
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The stores are currently owned and operated by Brookshire Grocery Company of Tyler, Texas. The companies anticipate that the transaction, which is subject to customary closing conditions, will be final within the next 30 days.
Fleming has a growing presence in value retailing. Its fast-growing price-impact retail group currently includes 101 stores in seven states, operating under the Rainbow Foods and Food4Less banners.
Fleming plans to operate its new stores under its Rainbow Foods banner, offering low prices without loyalty cards, special clubs or membership fees. Fleming anticipates that these stores will add annualized revenues of approximately US$150m. Fleming’s Garland and Lubbock divisions will supply grocery and perishables to the acquired stores. General merchandise will be supplied from Fleming’s General Merchandise division in Dallas.
“We are very excited about building on what has already been accomplished with these successful stores,” said Tom Dahlen, executive VP and president, retail and marketing.
Mark Hansen, chairman and CEO added: “Our Rainbow Foods and Food4Less stores serve a unique – and growing – niche in the market, specifically serving customers who are focused on obtaining the lowest prices. These stores do tremendous sales volumes. And, because of that, they are particularly well aligned with our distribution strategy of high volume and low costs to drive growth.
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By GlobalData“We are especially pleased to be bringing our outstanding brand of retail food stores to the Dallas metroplex to complement our existing food and general merchandise distribution centers, With this acquisition there will be approximately 1,800 Fleming associates in the Dallas /Fort Worth area.”
