SALT LAKE CITY (FNS) -- Fleming Cos., Oklahoma City, revealed at last week's annual meeting here it has recently opened three Yes!Less price-impact limited-assortment stores in northern Texas.
The stores, which further underline Fleming's emphasis on value retailing, are about 12,000 square feet, with groceries, general merchandise and a "Wow!" area devoted to exceptionally deep deals on national brands, said William Marquard, executive vice president for business development and chief knowledge officer, during his presentation at the shareholder meeting. He cited operational synergies that apply to both the new Yes!Less concept and Fleming's 18-year-old Food4Less warehouse format, in operation at 67 corporate and franchise stores in central and northern California, Arizona and Utah.
"Our focus on value retailing is being driven by consumers," said Mark Hansen, Fleming chairman and chief executive officer.
"We are trying to be responsive to all types of retailing alternatives that are attracting customers," Hansen told SN. Along with the three Yes!Less units, Fleming recently said it plans to open 100 more Food4Less stores over the next two years as well as to investigate the sale of the 161 conventional supermarkets owned by the company's five retail chains.
Fleming foresees a sales decline of 10% to 12% for its conventional stores over the next five years as consumers opt for new shopping environments, Marquard said. However, at Food4Less, he noted, sales are growing rapidly.
New Food4Less stores will be located in the banner's current West and Southwest market areas, with potential for national expansion, Hansen said. Like the existing 67 Food4Less units, the new stores will be a mix of both corporate and franchised stores, according to Shane Boyd, director of marketing and communications.
Boyd added the first three Yes!Less units, all in Texas, opened this year in February (Athens), March (Denison) and earlier this month (Sherman). The stores are serviced by Fleming's Garland, Texas, warehouse, and the format is still in the "research-and-development stage," Boyd added.
