SPARKS, Nev. — Scolari's Food and Drug said it would close its warehouse here and outsource distribution to C&S Wholesale Grocers.
"The grocery business is very competitive these days and we don't make decisions like this without doing our homework," Joey Scolari, chief executive officer of the retailer, said in a statement. "We must evolve if we want to remain profitable."
C&S will take over distribution next week, serving Scolari's 19 stores in Nevada and California from its facilities in Stockton, Calif., and West Sacramento, Calif.
According to Scolari's, "the restructuring presents an opportunity to control costs and bring value to customers throughout local markets."
The retailer acknowledged that the switch would result in job losses, but said employees would be offered severance packages and state assistance.
Read More of Today's Headlines