FLEMING BEGINS DELIVERIES UNDER ALLIANCE WITH KMART

DALLAS -- Fleming here said last week that its North Carolina division has completed its second full week of delivering food and consumables to Kmart and Kmart Supercenters in the region. mart. Additional Fleming divisions will be converting to the new alliance during the three-month period ending on June 30."Thanks to great support from both Kmart and our Customer Support Center, the initial ramp-up

DALLAS -- Fleming here said last week that its North Carolina division has completed its second full week of delivering food and consumables to Kmart and Kmart Supercenters in the region.

mart. Additional Fleming divisions will be converting to the new alliance during the three-month period ending on June 30.

"Thanks to great support from both Kmart and our Customer Support Center, the initial ramp-up was smooth and successful," said Dennis Caire, North Carolina Division president.

"In addition, our independent customers are experiencing benefits from expanded product lines and better bracket pricing."

In addition to the North Carolina conversion, Fleming began deliveries of certain product categories to various Kmart discount stores and supercenters ahead of the contracted schedule. Fleming and Kmart are working together to adjust the transition schedule to the benefit of both parties, including in some cases the early transition of some local independent supply business that currently supplies Kmart, Fleming said.

Fleming began additional deliveries on March 25 for produce and Bakery/Deli at the Sacramento division; produce deliveries at the Phoenix, Lafayette and Memphis divisions; and Bakery/Deli deliveries at the Nashville and Garland divisions. Additional divisions and product categories may be transitioned from independent suppliers ahead of the contracted dates as Fleming and Kmart review and implement the transition plan.